Xfera has selected Nortel Networks 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.
The Nortel Networks UMTS solution includes Nortel Networks e-mobility Internet Base Stations (iBTS) for wide area radio coverage; packet-based core networks featuring Nortel Networks Passport multiservice switches; Nortel Networks Preside network and services management; Nortel Networks Shasta* services management; and transmission equipment.
The Nortel Networks `Wings of Light` strategy uniquely leverages Optical Internet and Wireless Internet capabilities to deliver a powerful and efficient solution for UMTS and other 3G wireless networks. As part of this strategy, Nortel Networks recently announced the creation of 2,000 Wireless Internet jobs across Europe, and Wireless Centers of Excellence in France, Germany, Italy, Spain and the UK. Nortel Networks recently announced the creation of a Research and Development center for Wireless Internet in Barcelona, Spain.
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Xfera
Xfera, an independent Spanish operator of third generation UMTS mobile telecommunications, was founded in April 2000 after obtaining a licence through public tender. For more information, visit us at www.xfera.com Nortel Networks is a global Internet and communications leader with capabilities spanning Optical, Wireless, Local Internet and eBusiness. The Company had 1999 U.S. GAAP revenues of US$21.3 billion and serves carrier, service provider and enterprise customers globally. Today, Nortel Networks is creating a high-performance Internet that is more reliable and faster than ever before. It is redefining the economics and quality of networking and the Internet, promising a new era of collaboration, communications and commerce. Visit us at www.nortelnetworks.com.