Vodacom Signs Framework Agreement with Siemens to Build Its 3G/W-CDMA Network in South Africa

Business Wire, August 26, 2004

MUNICH, Germany -- South Africa's leading mobile communication provider Vodacom has signed a framework agreement making Siemens (NYSE:SI) (FWB:SIE) the sole supplier in building its 3G/W-CDMA network in South Africa. Under the terms of the contract, Siemens mobile, the mobile communication group at Siemens AG, is to upgrade Vodacom's existing GSM and GPRS network nationwide with Third Generation radio equipment and switches. This is Siemens' first 3G/W-CDMA contract on the African continent.

Vodacom will be the first mobile operator in Africa to put a 3G/W-CDMA network into commercial operation. As South Africa's leading mobile communication operator, with a customer base of more than nine million subscribers, Vodacom intends to offer initial 3G services by as soon as the first half of 2005, including video downloads or live broadcasts of e.g. soccer games to mobile phones.

"We decided to commission Siemens to install our 3G network, as being the world's leading supplier of 3G/W-CDMA technology, it has a wealth of experience in implementing the Third Generation of mobile communication, as well as a strong local presence in Africa," said Vodacom's Chief Operating Officer, Pieter Uys.

With this 3G/W-CDMA contract, Siemens will be able to strengthen its position as the world's leading supplier in the 3G sector. One out of every two 3G/W-CDMA networks in commercial service throughout the world today comes from Siemens and its technology partner NEC, which means that the two companies cover 90 percent of all 3G subscribers worldwide.

"We are pleased that we will now also be able to support Vodacom in migrating to Third Generation mobile communication, thus helping to strengthen South Africa's position as a technology pioneer in mobile communications," said Christoph Caselitz, President of the Networks Division at Siemens mobile. In 2003 alone, the number of mobile subscribers in South Africa rose by 26 percent. And the current mobile communication market penetration of 37 percent holds the promise of further growth potential for mobile operators.