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Telecommunications equipment industry

Ericsson Secures $78 Million Contracts in Latin America for Telecoms Network Upgrades

Strategic Insights

— 1 min read

Telefonica de Argentina S.A. and CTC (Compania de Telefonos de Chile) have submitted letters-of-intent to Ericsson for the delivery and installation of AXE digital switching systems and energy systems for their fixed telecoms networks. The contracts, worth approximately $78 million, will see Ericsson's Spanish subsidiary, Ericsson S.A., manufacture and deliver the equipment from their Spanish facilities before the end of the year. Ericsson's local companies in Argentina and Chile will carry out the installations, with a focus on the Buenos Aires and Mendoza regions in Argentina, and the Santiago and Valparaiso areas in Chile.

Key Takeaways:

  • Ericsson has received two separate contracts worth approximately $78 million from Telefonica de Argentina S.A. and CTC (Compania de Telefonos de Chile) for the delivery and installation of AXE digital switching systems and energy systems.
  • The contracts include the delivery of the AXE digital switching system, energy systems, and SDH transmission equipment from Ericsson's ETNA product portfolio.
  • The assignments are expected to be completed by the end of the year, with Ericsson's local companies in Argentina and Chile handling the installations.
  • The contract with Telefonica de Argentina S.A. will mainly cover the Buenos Aires and Mendoza regions, which are experiencing significant economic growth and increased demand for efficient telecommunications.
  • CTC, the main operator in Chile, will benefit from the installation of Ericsson equipment in the Santiago and Valparaiso areas, regions with great economic potential and increasing demand for telecommunications.
  • These contracts strengthen Ericsson's position as a leading supplier of telecommunications equipment to Latin American countries.
  • Ericsson has a significant presence in Latin America, with employees working in more than 100 countries and expertise in switching, radio, and networking.
  • as a major supplier of telecommunications equipment to many Latin American countries, including Brazil, Chile, Columbia, Ecuador, Mexico, Peru, Uruguay, and Venezuela, and Central American countries.

Statistics:

  • Total contract value: approximately $78 million.
  • Expected completion date: before the end of the year.
  • Number of employees working in Latin America: 80,000.
  • Number of countries where Ericsson operates: more than 100.
  • Countries where Ericsson supplies telecommunications equipment: Argentina, Brazil, Chile, Columbia, Ecuador, Mexico, Peru, Uruguay, Venezuela, and Central American countries.

Sources:

  • Telephone Company of Chile (CTC)
  • Ericsson
  • Telefonica de Argentina S.A.
  • Company description: Ericsson (2022)

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