LONDON -- Marconi Corporation plc (London: MONI and NASDAQ: MRCIY) has won a contract from Dutch national operator KPN to deploy a network of next-generation public payphones to replace KPN's existing payphones. The new payphones, Marconi's Neptune 300s, will allow the operator to offer voice and SMS text services, fully integrated with KPN's all-digital ISDN network. KPN's initial deployment will consist of 6,000 units and Management Systems and will be completed by December 2005.

"The aesthetics, reliability, pricing and overall capability of the Neptune range were important factors in our decision to choose Marconi for this project," said Bert van Houdt, General Manager Card and Payphone Operations, KPN. "Marconi's Neptune 300 payphones will enable KPN to maintain and develop its success in providing public telephony services. The potential for additional revenue streams and extremely low cost of ownership ensure that we can provide high levels of service to the Dutch public within the context of a sound business model.

"We will also work closely with Marconi on other related projects, including the deployment of public internet and webphones," he added.

In a subsequent phase of the agreement, KPN may deploy Marconi's Neptune 800 webphone to offer round-the-clock public access to traditional voice services, e-mail, video and photo mail, text messaging and internet connectivity.

The Neptune 800 is based on a modular design to accommodate hardware upgrades that allow operators to offer new services as and when they arise. The robust platform, managed remotely from a central network-operating centre, can be configured centrally allowing operators to download new applications to suit the changing markets needs with minimal cost.

"The Neptune range is an investment that will reinvigorate KPN's existing payphone network while establishing a solid, future-proof platform for new services and applications. It is an incredibly flexible and robust platform that will protect KPN's investment as its next-generation payphone network evolves," said Liam Brown, managing director, Marconi Interactive Systems.

KPN Telecom NV