Brazil’s Vivo chooses China’s Huawei to build GSM network

23 August 2006

Beijing, China, 23 Aug – Vivo, the Brazilian mobile phone operator, granted the contract for construction of its GSM network to Huawei, China’s largest manufacturer of telecommunications equipment, the Chinese company said in Beijing Tuesday.

Huawei said that it would develop Vivo’s GSM mobile communications network in the states of Rio de Janeiro, Espirito Santo, Paraná, Rio Grande do Sul and Santa Catarina.

Despite Huawei declining to give a value for the deal, Vivo said in July it would invest 390 million euros on setting up a GSM network.

The contract, which includes the initial development of thousands of base re-transmitters along the entire Brazilian coast, was signed on Vivo’s side by Cesar Alierta, chairman of Spanish group Telefonica, which is an equal partner in the business with Portugal Telecom.

Accordingt o Brazilian telecommunications regulator, Anatel, Vivo’s market share fell again in July, but the operator maintained its position s market leader, with 30.77 percent.

According to Anatel, the difference in market share between Vivo and Italy’s TIM fell from 9.77 percentage points to 6.2 percentage points, from April to July. (macauhub)