The Allen Group Secures $17 Million Deal with Ericsson for Argentine Cellular Systems

Strategic Insights -

The Allen Group Inc. announced a significant agreement with Ericsson Radio Systems AB to provide approximately $17 million worth of cellular telecommunications equipment for two Argentine cellular carriers, CCPI and TCP. This transaction marks the largest single sale of wireless communications equipment in ATG's history and will support the installation of new TDMA cellular telephone systems in northern and southern Argentina. The systems are scheduled to be operational by March 1996, providing wireless communications capabilities to customers across the region.

Key Takeaways:

  • The Allen Group's ATG subsidiary signed a $17 million agreement with Ericsson to supply cellular telecommunications equipment for two Argentine cellular systems.
  • The equipment will be used in new TDMA cellular telephone systems in northern and southern Argentina, providing wireless communications capabilities to customers in these regions.
  • Ericsson will provide the core infrastructure equipment, including central switches and base stations, while ATG will supply its high power Extend-A-Cell(R) ("EAC") 2000 repeaters and related equipment to cover approximately 30% of the geographic coverage area.
  • This transaction is the largest single sale of wireless communications equipment in ATG's history, including over 300 EAC-2000 cellular repeaters, battery backup systems, spare components, and accessories.
  • The sale demonstrates the successful penetration of world markets by ATG's Extend-A-Cell(R) products, which offer a quick and cost-effective solution to providing cellular coverage in large geographic areas with low population or user density.
  • Robert G. Paul, President and Chief Executive Officer of The Allen Group, stated that this significant order from Ericsson is further evidence of the success of ATG's products in world markets.
  • Erik H. van der Kaay, President of ATG, expressed pride and privilege in being selected to provide high-quality EAC equipment to Ericsson and the Argentine cellular operators.

Statistics:

  • The agreement is valued at approximately $17 million.
  • The systems are scheduled to be operational by March 1996.
  • Over 300 EAC-2000 cellular repeaters, battery backup systems, spare components, and accessories will be supplied by ATG.
  • The equipment will provide coverage for approximately 30% of the geographic coverage area.
  • This transaction marks the largest single sale of wireless communications equipment in ATG's history.

Sources:

  • Business Wire, Sept. 12, 1995 - Press Release: The Allen Group Inc. - $17 Million Deal with Ericsson for Argentine Cellular Systems.