HONG KONG – Hong Kong Broadband Network Limited, one of the fastest growing broadband services providers in Hong Kong based on number of subscribers, has deployed a next generation packet network using a voice over IP (Internet Protocol) solution from Nortel Networks* [NYSE/TSX: NT].

This new network, one of the largest voice over IP networks in the world, has positioned Hong Kong Broadband Network to drive reduced costs by moving voice and data traffic onto a single, 'packetized' infrastructure.

"We have made Hong Kong telecommunications history, attracting over 120,000 new subscribers since we launched high-quality, packet-based telephony services in April 2002," said Ricky Wong, chairman, Hong Kong Broadband Network Limited. "Deploying a next generation packetized network from Nortel Networks has allowed us to provide converged voice and data services at a substantially lowered capital investment and much reduced continuing operational cost."

"Transferring the cost savings to our customers has helped position us as one of the most competitive players in the Hong Kong market," Wong said. "The fast uptake of subscribers and the continued growth is a testament to our strong position."

The new network is based on Nortel Networks Succession* voice over IP solution, which is designed to provide a cost-effective foundation for delivery of new multimedia and packet voice service bundles. Hong Kong Broadband Network recently began offering a special package of fixed-line, IDD (International Direct Dial) and broadband Internet services for Hong Kong residential customers.

"This network deployment is a major milestone for Hong Kong Broadband Network," said Sue Spradley, president, Wireline Networks, Nortel Networks. "The adoption rate of broadband services in Hong Kong ranks among the highest in the world, and we have provided a technology platform that positions Hong Kong Broadband Network to address this market opportunity."

"Hong Kong is a major technology hub in Asia, and Hong Kong Broadband Network clearly sees the benefits of cutting-edge technology and a next generation network," said Stephen Tsui, managing director, Hong Kong, Nortel Networks. "The versatile platform we have provided enables Hong Kong Broadband Network to provide data, voice and video services according to customer demands."

Hong Kong Broadband Network Ltd. (HKBN)

Nortel Networks Corp.