Nortel to Build Chinese Backbone

BEIJING -- The Information andNetwork Center (INC) of China's State Administration of Radio, Filmand Television (SARFT) has signed an estimated US$10 million contractwith Nortel Networks (NYSE:NT)(TSE:NT.) for deployment of what isprojected to be the longest optical backbone system in the country'sbroadcasting industry. Expected to span nearly 3,000-kilometers when completed, thishigh-speed, high capacity optical network will carry radio, televisionand other data services from Beijing via Wuhan to Guangzhou. It willbe the first phase of a planned 30,000-kilometer national andprovincial fiber optic radio and television transmission backbone.

"This optical backbone, as well as the Beijing-Shanghai-Guangzhoubackbone, is positioning SARFT for the future -- underpinning ournational radio and television transmission network, and supporting abroad range of commercial services for the new corporation we and ourpartners intend to establish shortly," said Chen Xiaoning, director ofthe Internet and Network Center, SARFT. "We view this contract as thebeginning of what we hope will be a long-term relationship with NortelNetworks as we work together to leverage the power of thehigh-performance broadband network to deliver significant benefits toChina's broadcasting and communications industries."

http://www.nortelnetworks.com