Pelephone will close an agreement with Ericsson to build
the carrier’s 4G network.
Unless there is a last-minute hitch, Pelephone Communications Ltd.will close an agreement with Ericsson AS (NYSE; OMX: ERIC) to build the carrier’s 4G network. Following the Passover holiday, the parties resumed negotiations on a contract, in which Ericsson will be declared the exclusive vendor for the first of Pelephone’s 4G network, which includes 440 sites and upgrades of its core network.
Pelephone’s tender for selecting a 4G equipment vendor has lasted for several months. Ericsson was the favorite to win the tender, as it supplied Pelephone’s 3G network, but its high asking prices combined with aggressive pricing by Nokia Solutions and Networks and Alcatel-Lucent SA (NYSE; Euronext: ALU) caused Ericsson to match their prices.