Nortel Wins With China Telecom (Again)

BEIJING -- China Telecommunications Corporation (China Telecom), China's largest terrestrial wireline network operator, has awarded Nortel Networks (NYSE:NT)(TSX:NT) a contract to build new multiservice backbone networks in northern China, bringing the power and bandwidth of Nortel Networks high-performance ATM solutions to customers in these areas. Under terms of the contract, Nortel Networks will build a new network to cover 10 provinces in Northern China, including Beijing, Tianjin, Hebei, Henan, Shandong, Shanxi, Inner Mongolia, Liaoning, Jilin and Heilongjiang. Nortel Networks will also deploy a new metro network in the capital of Beijing. Both networks are scheduled to be in operation by early next year and are expected to extend China Telecom's multiservice backbone capabilities to all of China's 31 provinces. Nortel Networks has also been selected by China Telecom to build a new ATM-based multiservice backbone in Shaanxi Province and to expand existing networks in Hubei Province and Shanghai municipality. Since the restructuring of China's telecommunications industry in May 2002, China Telecom operates multiservice backbone networks in 21 provinces in Southern and Western China. Based on Nortel Networks Passport 15000-VSS and Passport 7000 Multiservice Switch portfolios, the new deployments are expected to position China Telecom to deliver advanced IP VPN (Virtual Private Network), ATM, frame relay, IP (Internet Protocol), circuit emulation and other, end-to-end data services. Nortel Networks multiservice backbone solutions provide an integrated, high-speed platform that offers a seamless migration path to MPLS. "We are honored to be selected by China Telecom for these significant projects, which further reinforce our networking strengths and our leadership in building high-performance multiservice networks in China," said Yuan-Hao Lin, acting president, Nortel Networks China. "These projects will create a new market framework, allowing business users to adopt new data services and applications on a massive scale." Nortel Networks Corp.