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 Nortel, in Brampton, Ontario, is at +1-905-238-7000 or at

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