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Nortel Networks in Brazil

Since its establishment in Brazil in 1991, Nortel Networks secured a significant share in the data and transmission markets. The company has closely followed and participated in the whole Brazilian telephony market growth, deregulation and digitalization processes, not only by supplying but also by producing equipment in Brazil, using local labor.

The results of this activity are gauged in numbers. In the first year, equipment sales in Brazil were US$ 25 million and in 1999 reached US$ 700 million. This result comes from a growing market share that has reached 70% in some cases. The number of employees has also followed the same pace jumping from 20 to approximately 1000.

Currently Nortel Networks, headquartered in São Paulo, has offices in Belo Horizonte, Brasília, Belém, Recife, Rio de Janeiro, Curitiba and industrial facilities and an Excellence Center located in Campinas.

Nortel's wired and wireless networks already service 100% of Brazil. The company's has 25% of the wireless market share, supplying customers, such as BCP, Telemig, Tele Centro Oeste, Americel and Norte Brasil Telecom, which accounts for approximately 5 million installed terminals. BCP that operates in the metropolitan area of São Paulo has deployed one of the world's most sophisticated wireless networks. This network set a new record of almost 1 million subscribers within eight months.

Past year in the fixed telephony area, the company made a turnkey agreement with Vésper S.A. - Telemar's mirror company - to deploy an advanced long-distance and inter-regional voice and data network; and with Intelig - Embratel's mirror company - to provide equipment, and data and switching services. In 2000 Nortel Networks closed an agreement worth US$ 240 million to provide GVT (Global Village Telecom) with infrastructure.

The company also is a supplier of SDH network to customers like MetroRed and Telefónica (São Paulo), for the latter it is deploying one of the largest metropolitan rings ever with capacity for 1.6 million simultaneous calls, in addition to Impsat's large project which is currently being deployed.

The Center of Excellence

The decision to install an excellence center in Brazil was made in June 1997 and, in November that same year, the company delivered the first product manufactured in Brazil, the NTEX93AA Network Transcoder Unit. In May 1998, Nortel Networks bought Promon's building and officially inaugurated the manufacturing plant in June 1st, 1998. For the time being, investments made in the manufacturing plant, Research & Development and in the Training Centers amounts to R$ 140 million.

The Manufacturing Plant

With 150 direct employees in the production area, the company is growing since it has started its operation. A 25% increase in indirect job positions and 50% in production positions are estimated for 2001.

Nortel Networks manufacturing plant located in Campinas develops local technology and it is not only an assembly line of imported products. The company acts in the industrial process and develops new products. In the industrial technology area, it develops test and production solutions, qualifying local suppliers. In terms of products, Nortel Networks is member of BTC - Brazil Technology Center - and of NSM - Nortel Networks Site Manager - that will produce the next generation of 800/1900-MHZ TDMA Radio Base Stations.

Research and Development

In 1998, Nortel Networks Research & Development Center was opened in Campinas. One reason for choosing the area of Campinas is because it offers specialized labor, as Universities, similar companies, and Research Centers like CPqD Foundation are established there. The Technology Center has signed partnership agreements with CPqD Foundation, FINATEL, UNICAMP and PUC Rio - CETUC, among others.

One of the Center's key objectives is to deliver the 3G Wireless Internet in Brazil, meeting local customer's wireless and wired needs. Another objective is to expand and develop new products, increasing the number of international partnerships.

Since 1998, more than R$ 50 million has been invested in Research & Development and the workforce has increased dramatically. Currently 200 engineers work in software projects at the Research Center. These projects involve TDMA and CDMA technology customers from Brazil, United States and Mexico.

It is essential that each Nortel Networks Research Center has its own focus and expertise. The Campinas development team is responsible for wireless network management and TDMA and CDMA signaling.

Plans for 2000 include the expansion of Network Management projects (which is the focus of the Campinas Research Center) and new projects as testing CDMA mobile using the Open Solutions Laboratory.

The Training Center

Nortel Networks Training Center is located on the premises of Campinas manufacturing plant. It was opened in 1999 and it is used for training, refresher and other courses for the company's employees. Every month, the Training Center trains more than 700 technicians in operation and maintenance of equipment that Nortel Networks markets in Brazil and in Latin America.

The Training Center offers more than 80 courses in several technologies; it has a partnership with US headquarters that provides information to deliver Internet-oriented courses covering Wireless, Data and Optical Networks.