Samsung signs $100 million contract with Venezuelan cellular operator

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CARACAS--Samsung has signed a $100 million contract with Telcel CA, one of Venezuela's leading cellular telecom operators, as part of its assault on the Venezuelan cellular telecom market.

The Korean firm expects top sell 500,000 cell phone models 411 and 811 by the end of the year, according to Peter Tan, general manager of Samsung Electronics Latin America. Samsung is aiming to carve up a significant share of the local cellular sector, currently dominated by Motorola, Nokia and Ericson.

Samsung is planning to spend $3.5 million this year to promote its 811 model, which features an innovative electronic agenda. Its Caracas agency is A.W. Nazca/Saatchi& Saatchi.

Samsung's longer-term plans are to apply for a digital telephone concession when the current monopoly on hard-wire and long distance telephone services of the Compania Anonima Nacional de Telefonos de Venezuela (Cantv) expires in November 2000. It also plans to bid for a basic telephony license.

Copyright June 1999, Crain Communications Inc.

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