Ericsson seen as best bet to supply TIM?s GSM overlay

Ericsson is considered the most likely supplier of GSM technology for Telecom Italia Mobile (TIM) to overlay on its existing TDMA networks. TIM has a license to offer PCS nationwide and is building new GSM networks wherever it doesn?t currently operate TDMA. Ericsson enjoys the advantage of having already supplied the telco?s TDMA technology, which covers 11 states and serves some 13 million customers. In principle this means it should be able to make the necessary adaptations to TIM?s switches more easily than another vendor. Moreover, Ericsson is one of the Italian group?s main global partners in GSM and has won the contract to build its new PCS network in São Paulo, considered the most important. Ericsson?s competitors are not intimidated by all these advantages, nonetheless. Several have submitted proposals for the overlay project. TIM could take the opportunity to diversify its list of partners so as to avoid depending on a single vendor. As announced by TIM last week, the GSM overlay is scheduled to come on stream during the first half of 2003. It will require additional frequencies in the 1800 MHz band, available from Anatel until December 6.

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