Finnish communications manufacturer Nokia is in final negotiations with Cellcom to set up the latter’s new GSM network.
The 1,800-megahertz network will operate on frequencies being offered in the Ministry of Communication’s cellular tender. The cost of setting up the new network is estimated at $250 million. Nokia will also deploy a 3G network at a later stage, under the terms of the contract.
At the end of last week, Cellcom notified Nokia’s co-bidders, Swedish company Ericsson, and Canadian company Nortel, that they had lost the tender, and that Cellcom was conducting final negotiations with Nokia. Ericsson made a last-minute improved offer, but it, too, was rejected.
Cellcom is planning to set up and deploy its GSM network, based on GRPS technology, within a month, and to start operating it towards the end of the year.
The new network will be set up on the infrastructure of existing sites, at a cost of hundreds of millions dollars. The deployment involves installing equipment, switches, transmission, and data infrastructure and billing system linkups. Cellcom's TDMA network will continue operating. Experimental 3G systems will also be installed.
Ericsson said it had presented a last offer to Cellcom and that Cellcom had to decide on the matter. Nortel, Nokia, and Cellcom did not comment on the report.
Published by Israel's Business Arena on 27 June 2001