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Spain's Xfera selects UMTS infrastructure suppliers
Posted: 25-Oct-2000 [Source: Nortel]

[Nortel becomes the largest of the UMTS suppliers to Spain's Xfera. This becomes Nortel's third major 3G win in Europe.]

Madrid, Spain -- Xfera has selected Nortel Networks [NYSE/TSE: NT] as primary supplier to supply Wireless Internet infrastructure and services for its third generation (3G), UMTS (Universal Mobile Telecommunications System) network in Spain. The selection, estimated to be worth US$935 million over three years, is subject to the execution of definitive agreements.

Under Xfera's plan, high performance Wireless Internet solutions from Nortel Networks will deliver - on a turnkey basis - the IP (Internet Protocol) core network and 50 percent of the radio access, along with a range of other services which will enable initial deployment of its network in Madrid, southern Spain, the Canary Islands, and much of the northeastern portion of Spain. Xfera expects to begin offering service in August of next year. Under the award, Nortel Networks will provide financing to Xfera.

This is the third major UMTS infrastructure award in Europe for Nortel Networks following BT (UK) and Airtel (Spain), giving Nortel Networks one of the leadership positions in the European wireless infrastructure market with estimated awards totaling over US$1.8 billion.

"Nortel Networks is building the high-performance Internet, and positioning wireless operators to capitalize on the service and revenue opportunities of 3G wireless," said Pascal Debon, president, Nortel Networks Europe, Middle East and Africa. "With our unique 'Wings of Light' strategy, we're combining market-leading wireless and optical capabilities which will enable operators like Xfera to offer fast, reliable and scalable Internet access and services virtually 'anytime, anywhere' to business and residential users alike."

Wireless Internet services based on UMTS capabilities are expected to be generally available in many Western European countries by 2002 in a market which industry analysts expect to reach US$70 billion by 2003. UMTS is designed to provide unconstrained access to information, e-mail, eBusiness, real-time video and other Wireless Internet services through a variety of personal, portable devices.

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