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Nortel Wins China GSM Deal

Nortel wins contract to provide GSM Railway (GSM-R) switching centers to China's Ministry of Railways

May 19, 2006

1 Min Read

BEIJING -- China's Ministry of Railways (MOR) and Nortel* [NYSE/TSX: NT] have signed a framework agreement for Nortel to provide GSM Railway (GSM-R) switching centres to enable digital mobile signaling and operational communications along passenger lines spanning 20 of China's 31 provinces.

The Nortel GSM-R switching centres will cover nearly half of MOR's national railway footprint, serving both conventional railway lines as well as planned high-speed lines. Seven switching centres will be deployed at key locations nationwide, supplementing two switching centres previously deployed in 2005.

Secure and reliable digital mobile voice and data communications for train drivers, signalling personnel and other operational staff rank high on MOR's agenda for the evolution and modernization of China's railway network. Nortel's global leadership in GSM-R and vast experience deploying GSM-R networks worldwide influenced MOR's decision to sign this agreement with Nortel.

"MOR's selection of Nortel switching centres puts us in a favourable position for future business as China furthers its commitment to GSM-R for railway communications," said Robert Mao, president and chief executive officer, Greater China, Nortel. "To further enhance the experience of millions of passengers travelling China's railways each day, a comprehensive and advanced communications network will help China power the rapid growth of its railway network and, in particular, its migration to 200-300km per hour fast trains."

Nortel Networks Ltd.

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