Vivo selects HUAWEI to build the 3G-oriented GSM network

August 22, 2006

HUAWEI Technologies announced that it had been selected by Telefónica as the key provider for Vivo, the largest mobile telecommunications operator in the South Hemisphere, to construct a 3G-oriented GSM network. This signifies that the strategic collaboration between Telefónica and HUAWEI has been elevated to a new phase, and recognizes that HUAWEI's innovative wireless solutions are able to meet strict requests of any high-end markets.

The Telefónica VIVO GSM project entails constructing the largest GSM network for 2006 in Latin America. According to the contract, HUAWEI will construct GSM networks for the most economically developed states along the coastline in Brazil, including Rio de Janeiro, Espírito Santo, Paraná, Rio Grande do Sul and Santa Catarina, which cover world-famous tourist cities such as Rio de Janeiro. Thousands of HUAWEI's Base Transceiver Stations (BTS) will be deployed in the first phase of the contract.

The entire network constructed by HUAWEI will adopt its EnerG GSM solution featuring 2G/3G compatibility and new generation GSM stations, outfitted with equipment that is capable of smooth evolution to 3G. This way, HUAWEI helps the operator to maximize their value and profit by lowering long-term network construction costs and network life-cycle operational & maintenance expenditure.

"The VIVO GSM project is one of the largest mobile projects of Telefónica in recent years. For us, the compatibility with 3G services is very important to assure its future upgrade to WCDMA/UMTS in a cost-effective way. Telefónica is very happy to further develop its relationship with HUAWEI in Latin America," commented Mr. Cesar Alierta, Chairman of Telefónica.

"Thanks for Telefónica and Vivo's trust on HUAWEI, and we are delighted to have become Telefónica's key partner in wireless area and meanwhile," said Ms. Sun Yafang, Chairwoman of HUAWEI.