Wireless telephony company Cellcom will deploy a third generation using UMTS technology during 2004, Cellcom CTO Lipa Ogman said today.
Cellcom recently held a tender for setting up the first stage of the network, in which Ericsson was selected to carry out the project. An announcement is expected in the next few weeks concerning the second company that will take part in the first stage of the UMTS network project.
Cellcom's decision moves its rivalry with Partner Communications (Nasdaq: PTNR; TASE:PTNR; LSE:PCCD) up a notch. Partner is also supposed to be deploying a third generation network this year.
At the same time, Cellcom will issue a request for proposals from suppliers for completing country-wide deployment of its third generation network.
Ogman said that within two months, Cellcom subscribers would be able to benefit from a substantial technological advantage with completion of the upgrading of the GSM network to an advanced EDGE (enhanced data for GSM evolution) network. This will enable Cellcom subscribers to obtain advanced data communications services at speeds of 200 kbps, five times faster than any other network in Israel. The EDGE network is unique to Cellcom. Cellcom was able to deploy it because of the advanced nature of its GSM network, which uses the latest equipment.
Ogman said that the EDGE network would enable users to switch from the third generation network to the second generation network in areas where there is no UMTS coverage without disruption.
Partner, by contrast, plans to go directly from the GPRS stage to the third generation network. Up to now, it had been assumed that Cellcom would delay its third generation network until the full potential of EDGE had been exploited.
Three months ago, Partner selected Nortel as its sole supplier of equipment for its third generation network. The contract is estimated to be worth $93 million.
Partner VP technologies Division Menahem Tirosh said in response to the report that "it has once again been demonstrated that Partner was right in its strategic direction."
Tirosh added that Partner was able to rely on its main shareholder. Hutchison Whampoa to support the launch of its new network, while Cellcom had no such strong entity behind it.
Published by Globes [online] - www.globes.co.il - on January 19, 2004