Alcatel-Lucent reportedly signs $1 billion deal with Brasil Telecom
Brazilian telecom operator Brasil Telecom Participacoes BRP closed a deal with Alcatel-Lucent ALU worth nearly 2 billion Brazilian reals ($1.1 billion) for the maintenance of its network, local business daily Valor Eoconomico reported Wednesday. The Paris telecommunications equipment company beat rivals Ericsson ERIC and Nokia Siemens Networks for the contract, which lasts approximately two years, said the report.
"It's the biggest contract closed by Brasil Telecom in the last few years. We will have a relationship that is close to marriage with Alcatel-Lucent, not just a supplier-client relationship," said Francisco Santiago, Brasil Telecom's vice president of operation. Alcatel-Lucent will take care of the administration and maintenance of the company's fixed-line and wireless telephony infrastructure and well as the data transmission network. Up to now, some six different companies had been offering these services. Maintenance of the network is one of Brasil Telecom's principle outlays, accounting for nearly 10% of all expenses in the first nine months of 2007.
Brasil Telecom is in talks with rival Tele Norte Leste Participacoes TNE, or Oi, with a view to a possible merger. According to local press reports, Oi has made an offer of BRL4.8 billion for control of Brasil Telecom.
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