Brazil's Vesper Selects Lucent Technologies To Supply Wireless Network in US$470 Million Agreement.

SAO PAULO, Brazil--(BUSINESS WIRE)--Sept. 27, 1999--

-- Lucent to install digital wireless local loop network to offer

competitive local and long distance telephone services in Sao

Paulo

Lucent Technologies today announced it has been selected by Vesper, one of the new, competitive service providers in the state of Sao Paulo, to supply a wireless network for fixed voice and data services that Vesper will begin to offer its customers in December.

The project, which could reach US$470 million over five years, is subject to negotiation of final terms and conditions and would include financing. Under the proposed agreement, Lucent will supply a "wireless local loop" (WLL) system, whose key benefit is rapid deployment because it does not require installers to dig trenches and install cable or telephone poles. WLL systems consist of base stations which use radio signals to deliver network services to receivers installed at the home or business. The phones operate just like any ordinary phone, connected through the in-house wiring system.

The first phase of the project calls for the installation of Flexent(TM) PCS Minicells and Mobile Switching Centers (MSCs) using Lucent's flagship 5ESS(R) Switch platform. Lucent also will supply a range of NetCare(R) professional and network support services to deploy the network and its Galaxy Power Systems.

"Lucent's unparalleled combination of technology and services, together with its unrivaled international experience, were the decisive factors in the selection process," stated Virgilio Freire, president of Vesper, the trade name for Megatel do Brasil S.A. The Megatel consortium won the second carrier license to provide competitive local and long distance services in the state of Sao Paulo. "The rapid deployment of WLL will allow us to meet all our commitments and deadlines, and to begin offering high-quality services at a competitive price," added Freire.

The rapid launch of fixed line service is possible because the network is based on a digital mobile phone technology called Code Division Multiple Access (CDMA). Instead of cable or wire, the network relies on wireless transmitters and receivers to deliver telecommunications services to residence and business customers, enabling Vesper to rapidly deploy the service in a matter of weeks. Additionally, the CDMA network will operate in the 1.9 GHz band of the radio frequency spectrum and offer a range of personal communications services, including voice and data communications.

"We are delighted to be working with Vesper in the first large-scale deployment of wireless local loop technology in Brazil," said Jose Roberto Campos, acting president of Lucent Technologies in Brazil. "Lucent has already successfully deployed this type of wireless network in Saudi Arabia, Poland and Egypt, and Lucent Brazil is standing ready to help Vesper meet its schedule."

In addition to WLL, Lucent also will supply other solutions such as network management software, intelligent networking software for short message and other value added services, and power systems for the radio base stations. In subsequent years, the contract also calls for the installation of optical fiber and copper networks, as well as the evolution of the 1.9 GHz system to allow higher-speed data transmissions.

About Vesper in Sao Paulo

Vesper is the trade name for Megatel do Brasil S.A., a consortium composed of Bell Canada International, Qualcomm and Velocom of the United States, and SLI of Argentina. Megatel won the second carrier license to compete against the incumbent wireline telephone service provider in Sao Paulo as part of the privatization process which began in Brazil in July of 1998. Vesper is slated to begin offering services in the largest cities in the state of Sao Paulo, including the Sao Paulo metropolitan area, in December of this year.

About Lucent Technologies

Headquartered in Murray Hill, N.J., USA, Lucent Technologies designs, builds and delivers a wide range of public and private networks, communications systems and software, data networking systems, business telephone systems and microelectronic components. Bell Laboratories is the research and development arm for the company. For more information on Lucent Technologies,visit its Web site at http://www.lucent.com.