Telemig to spend USD100 million on GSM technologies

27 Jul 2004

Brazilian wireless operator Telemig Celular has inked a USD100 million deal with Ericsson of Sweden for GSM equipment. The deal includes the delivery and installation of 870 base stations and a core network platform. Telemig has approximately 2.4 million subscribers in Minas Gerais and hopes to begin a migration of customers from TDMA to GSM by the end of 2004. Telemig is majority-owned by Telpart Participacoes, which also has a controlling interest in Amazonia Celular. Both companies plan to replace their existing infrastructure with GSM. On a less positive note, the purchase of GSM technology is believed to present an obstacle to Telemig’s eventual acquisition by mobile operator Vivo, which uses the rival CDMA technology.

Brazil, Telemig Celular