Brazilian mobile operators Brasil Telecom and Oi are today reported to have struck major infrastructure deals for the individual expansion and upgrading of their networks. Brasil Telecom has closed a deal with Alcatel-Lucent worth nearly 2 billion Brazilian reals (US$1.1 billion) for the maintenance of its network, local business daily Valor Eoconimico reported Wednesday. The Paris-based vendor beat rivals Ericsson and Nokia Siemens Networks for the contract, which lasts approximately two years, said the report. Alcatel-Lucent will take care of the administration and maintenance of the company’s fixed-line and wireless telephony infrastructure as well the data transmission network. Up to now, some six different companies had been offering these services. Brasil Telecom – the sixth largest mobile operator in the country with 3.4 million subscribers – is in talks with rival Tele Norte Leste Participacoes, or Oi, with a view to a possible merger. According to local press reports, Oi has made an offer of BRL4.8 billion for control of Brasil Telecom.

Meanwhile Oi has signed contracts with Nokia Siemens Networks and China’s Huawei for the installation of 3G kit across the country. The deals to install networks across 18 states are worth 1 billion reals (US$568 million), according to Valor Eoconimico. Over the next year, Oi plans to install 3G services in 53 municipal areas, as well as establish a 3G network in Sao Paulo. According to the report, Nokia Siemens Networks won the majority of the 3G deal.