Ericsson has signed an additional contract with Diginet Americas Inc., valued at USD 200 million (SEK 1,680 million) to further build out Diginet's fixed wireless broadband network throughout Latin America. The agreement expands Ericsson's previous agreement with Diginet from USD 100 million to USD 300 million.
Through this agreement, Ericsson will continue to provide its multi- service solution for Diginet Americas, including Ericsson's MINI-LINK wireless systems, optimized for IP-based services. Ericsson's highly scaleable AXD 301 ATM switch is providing the core for Diginet's multi- service networks, which supports a full range of high quality data, Internet, voice and video services.
Since Ericsson and Diginet Americas signed their initial contract in June 1999, Diginet has secured additional spectrum and operating licenses in Brazil and Panama, launched commercial services in São Paulo, Brazil and has been awarded licenses to offer local and long distance voice telephony services in Argentina.
Diginet's fixed wireless broadband multi-service platforms went into commercial service in São Paulo, Brazil and Bogota, Colombia in September of this year. The network, which is one of the first of its kind in Latin America, began serving customers with the Ericsson next generation network in September - just three months after announcement of the initial contract.
"This expanded agreement with Ericsson confirms the synergy between our companies as we worked together over the last six months to enhance the build-out of our networks," said Dave Schmieg, President and CEO of Washington, DC-based Diginet Americas, Inc.. "Looking forward, the future is bright as we accelerate our efforts to expand our service offerings and introduce new data and Internet based products into additional markets in Latin America. Ericsson is helping Diveo evolve into the premier telecommunications solution for businesses in Latin America."
"Diginet's recent successes in their acquisition of licenses and network deployment is a clear indication of their capability to excel in the fixed wireless broadband market," said Bengt Forssberg, Executive Vice President, Ericsson Latin America. "The growing partnership between Ericsson and Diginet allows Diveo to concentrate on delivering the highest quality of data and IP based solutions to corporate customers, ISPs and telecom carriers throughout the region."
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