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Brasilcel to launch BREW applications in March



RELATED SYMBOLS: (QCOM)(ERICD)

Brazil, Jan 30, 2003 (BNamericas.com via COMTEX) -- Brazilian mobile holding
Brasilcel will launch US-based Qualcomm's (Nasdaq: QCOM) BREW wireless
applications platform in March, thereby becoming the first Latin American
operator to commercialize BREW, Brasilcel VP Luis Avelar told reporters on
Thursday.

Subscribers will need to purchase BREW-enabled handsets, initially supplied by
Motorola (T720) and Audiovox Toshiba (CDM9500), with Samsung, LG, Kyocera and
Ericsson models to follow over the short-term.

"We will not subsidize the handsets," Avelar said, adding that the applications
are targeted to the residential market.

The company expects data revenue to increase from 2.4% of gross revenue today to
3.3% by year-end, on the assumption that 20,000-30,000 subscribers will purchase
a BREW handset within six months of the launch, Avelar said. By 2005 Brasilcel
expects double-digit data revenues in terms of contribution to total revenues.

The handsets will be available to all Brasilcel users, both those on its 3G
CDMA2000 1xRTT and 2G networks. Billing will vary according to the network
however, with 1xRTT subscribers charged by kilobyte, and 2G subscribers charged
by the minute. Brasilcel's 1xRTT network delivers data ten times faster than its
2G network, at 144Kbps. Today Brasilcel has 200,000 1xRTT subscribers, of which
10,000 are corporate lines.

Investment in the launch has been next to nothing, with Qualcomm and the
applications suppliers being the ones fronting cash to implement the project,
Avelar said, adding that Qualcomm as well as applications suppliers have signed
revenue sharing agreements.

Qualcomm's share cannot be divulged, but applications suppliers will get 50-75%
of the content revenues, he said, adding: "All of the traffic revenue will be
kept by the operators." Brasilcel has not yet calculated its marketing and
billing budget for the project.

Brasilcel has more than a 50% share of the Brazilian mobile market, but is the
only operator of the big four - including Telecom Italia Mobile (TIM), fixed
line incumbent Telemar's Oi, and America Movil's Telecom Americas - to have bet
on CDMA for its network migration.

"BREW is the most efficient and suitable technology for CDMA," Avelar said,
adding that the BREW launch is not Brasilcel's answer to GSM.

BREW is an open platform that brings together software developers, handset
manufacturers and mobile operators, ultimately enabling the operators to select
downloadable wireless data applications for their customers. Qualcomm describes
it as providing the "kick-start" needed to fuel mass-market adoption of wireless
data applications and services.

Brasilcel is a joint venture between Spain's Telefonica Moviles (NYSE: TEM) and
Portugal Telecom (NYSE: PT).


URL: http://www.bnamericas.com

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KEYWORD: Brazil
SUBJECT CODE: Mobile Telephony
Internet/Data

(Wall Street)





Daniel Nieves