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Siemens and Ericsson negotiating for GSM contract

PTC director general Tadeusz Kubiak would neither confirm nor deny the report, but he did confirm that the consortium had chosen DMB&B as its advertising agency.
An official announcement about the equipment supplier and the ad agency are expected in May, Kubiak said.
Also last week, PTC's competitor, Polkomtel, announced that it had signed a letter of intent with Nokia Telecommunications, a division of the Finnish Nokia Group, to build Polkomtel's Global Systems Mobile (GSM) network.
As for an ad agency, Polkomtel is working up a list of potential companies, according to Wojciech Jedrzejewski, Polkomtel spokesman.
The bulk of the consortia's spending Ą expected to exceed $2 billion total Ą will go toward creating the infrastructure to enable them to hook up a potential 1.3 million customers by the year 2000. The two are also expected to spend more than $3 million in advertising and marketing as they launch their systems.
The GSM licenses were awarded to the two consortia on Feb. 1.
Besides Nokia, Siemens and Ericsson, other potential equipment suppliers reportedly include Alcatel, AT&T (Lucent Technologies) and Motorola. PTC will choose two equipment suppliers so it wouldn't be dependent on one company and to foster competition, the industry insider said.
Polkomtel, on the other hand, selected one equipment supplier Ą Nokia Ą to supply its GSM network.
The final contract, expected to be signed May 20, would run through the end of 1998, according to a joint statement. Nokia will supply cellular telephone exchanges, a receiving and transmitting base station, base station controllers, radio receivers and transmitters, operation exchanges, a traffic maintenance station, and a center of network management.
Neither side would disclose the value of the contract.
While Polkomtel has yet to choose an advertising agency, the consortium has invited Bates Saatchi & Saatchi to give a presentation, said David Williams, the agency's managing director.
Polkomtel is reportedly compiling a list of potential ad agencies, although it was not yet clear if other firms would also be invited to make presentations.
Polkomtel's major partners are Petrochemia Plock, KGHM Polska Mied, TeleDanmark and Air Touch, each with a 19% share, and Polish Power Grid Co. with 12%. PTC's major partners are Elektrim, with a 33% stake, and DeTeMobil and US West, each with a 23% stake.

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