News | November 8, 2001

Nortel Networks to Deploy Optical Long Haul Backbone Networks for China Mobile

BEIJING – Nortel Networks [NYSE/TSE: NT] has been awarded contracts valued at approximately US$18 million to provide Optical Long Haul backbone networks for China Mobile, the largest mobile operator in the People's Republic of China and one of the largest in the world.

Already serving approximately 100 million GSM wireless subscribers, China Mobile plans to use the increased speed and capacity that these new optical backbones will provide to address growing demand for high-speed mobile Internet services and e-commerce applications.

With nearly 30 years of operating experience in Greater China, Nortel Networks has won contracts estimated to be worth more than US$1.2 billion since the start of 2001 from customers such as China Mobile. Nortel Networks is also investing in China to deliver key next generation networking solutions, and its comprehensive R&D facilities in Beijing are expected to play an important role in developing new technologies.

"These wins continue our momentum in providing high-performance Optical Long Haul technology in China and the rest of the world," said Robert Mao, chief executive officer, Nortel Networks China.

"Nortel Networks is taking optics everywhere – from the network core, through the metropolitan area and to the enterprise desktop," Mao said. "We are positioning service providers such as China Mobile to unleash the profit potential of their networks by reducing operational and capital costs; adding new, potentially revenue-generating services; and increasing the speed at which these new services can be offered."

China Mobile plans to deploy Nortel Networks OPTera* Long Haul 1600 Optical Line Systems in Zhejiang and Hubei Provinces. Nortel Networks OPTera Connect DX will also be used in these provinces, as well as in Nanning, the capital city of the Guangxi Zhuang Autonomous Region. China Mobile will deploy Nortel Networks OPTera Metro 4200 Multiservice Platform in Luzhou, Sichuan Province and Hubei Province.

Nortel Networks OPTera Long Haul 1600 Optical Line Systems use dense wavelength division multiplexing (DWDM) technology, which maximizes optical fiber capacity by splitting light into as many as 160 channels, allowing more data to be carried across the Internet backbone. DWDM facilitates multi-terabit systems with high-bandwidth receivers and electronic circuits.

Nortel Networks has worked with China Mobile over the last decade to build GSM networks in eight provinces: Hebei, Shaanxi, Tianjin, Xinjiang, Guizhou, Anhui, Liaoning and Hunan. Nortel Networks systems in these provinces support 9.6 million China Mobile subscribers. In 2001, Nortel Networks has announced US$265 million in new GSM business with China Mobile.

Nortel Networks has announced more than 30 10-gigabit and DWDM optical contracts in China. Nortel Networks was the #1 provider of WDM solutions in China for the first half of 2001, according to RHK, a leading telecommunications research firm. Worldwide, Nortel Networks has more than 750 optical customers.

Nortel Networks is an industry leader and innovator focused on transforming how the world communicates and exchanges information. The company is supplying its service provider and enterprise customers with communications technology and infrastructure to enable value-added IP data, voice and multimedia services spanning Metro Networks, Wireless Networks and Optical Long Haul Networks. As a global company, Nortel Networks does business in more than 150 countries. More information about Nortel Networks can be found on the web at www.nortelnetworks.com.