Brazil's largest cell-phone operator Vivo is establishing a GSM network to help pave the way to third-generation (3G) wireless services.

Portugal Telecom, one of Vivo's parent companies, said Monday the $2.5 billion project would result in Vivo customers having access to both GSM and CDMA digital technologies, which will position Vivo for later deployment of 3G at a later date.

Portugal Telecom recently launched a revamp of Vivo's business strategy as a means of turning around an erosion of its market share.

Copyright 2006 by United Press International