Oi seeks cost-effective rural expansion

Brazilian mobile operator Oi is seeking cost-effective options to expand its network into rural areas, Oi network director Antonio Parrini told BNamericas. Earlier this week, Oi selected Nokia (NYSE: NOK) to provide radio base stations, and these will initially be installed in rural areas in Minas Gerais, Espirito Santo and Rio de Janeiro states, where Nokia provided the initial network equipment for urban areas, he said. The Nokia system is very modular, allowing Oi to build out basic voice services relatively cheaply and to add on value added services such as GPRS as return on the initial investment grows, he said. Oi is looking to expand rural coverage in the other states where initial network equipment for urban areas was provided by Sweden's Ericsson and France's Alcatel, he said, adding that Oi would seek the most effective options for reducing investment requirements in rural areas.