Nortel Lands US$240M Project in Brazil

FORT LAUDERDALE, FLA. (06/15/2000) - A consortium controlled by Global Village Telecom NV (GVT) has awarded a 3-year, US$240 million project to Nortel Networks Corp. to build a telecommunications network that will provide voice, data and Internet service in Brazil, the companies announced on Wednesday.

GVT, based in the Netherlands, won a license in August 1999 to provide telephone service in southeast Brazil to nine states and the country's capital, Brasilia, an area with a population of about 38 million people. GVT announced in 1999 that it had earmarked $550 million to build its Brazilian network. The Nortel project is part of the network buildout. [See "Brazil Awards Telecom License" Aug. 30, 1999.] Some of the other providers tapped by GVT for its Brazil operations are ECI Telecom of Israel, which was awarded a $165 million contract to build a Wireless Local Loop infrastructure, and Hewlett-Packard Co., which is building a $50 million data center, the Reuters news agency reported on Wednesday. GVT plans to invest $1 billion in Brazil over the next three years, Reuters reported.

GVT, whose license allows it to provide local and long-distance service within this region of Brazil, plans to begin offering service before the end of this year, the companies said.

GVT's Brazil unit can be reached at http://www.gvt.com.br/. Nortel, in Brampton, Ontario, is at +1-905-238-7000 or at http://www.nortelnetworks.com/.

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