ADC Israel, which develops, manufactures, and markets broadband access systems, has signed an agreement with Telefonica Sao Paolo subsidiary Telesp (NYSE: TSP) to supply it with systems for $15 million. The systems will be installed in cities in the Brazilian state of Sao Paolo.
ADC Israel supplied systems to three Brazilian operators for $35 million in recent months.
ADC Israel’s BroadAccess system connects the communications operator’s switchboard with the end user. It is installed in a local branch box and supports a variety of applications, including XDSL broadband technology and narrow band services.
The system enables Telefonica Sao Paolo to provide diverse services to crowded residential areas and businesses in Sao Paolo. Telefonica will be able to provide communications services to tens of thousands of new subscribers by the end of the year.
ADC Israel CEO Amnon Unger stated, “We regard the Brazilian market as an important strategic target; it includes GVT, Brazil Telecom, and Telefonica Sao Paolo. This contract is another stepping stone in the establishment of ADC Israel as a communications equipment supplier in Brazil.”
Unger added, "With this contract, ADC becomes an important provider for three of the four major operators in Brazil, which cover 70% of the Brazilian market.”
ADC Israel is a subsidiary of ADC International. Company headquarters are in Herzliya. ADC International’s sales turnover totaled $3.2 billion in 2000.
ADC Israel exports access systems to 45 communications service operators around the world. Its customers include Bezeq, PalTel in the Palestine Authority, Deutsche Telekom, Telecom SA, and Turk Telecom.
Published by Israel's Business Arena on August 5, 2001