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3G Expansion Ready Network for China Mobile

3rd October , 2005

ASIA : China Mobile has selected Nortel to expand its digital wireless network in six regions under a series of contracts awarded since January of this year and collectively estimated at US$150 million.

The contracts include network optimization services from Nortel to streamline performance of the expanded infrastructure and enhance network productivity while allowing China Mobile to standardize service pricing across all regions.

China Mobile's GSM network expansion in the six regions will increase subscriber capacity by 3.48 million to a total of approximately 18 million. It is expected to improve network coverage and services to remote areas while providing a smooth migration to future 3G services.

The expansion will also support China Mobile's National Rural Network Project in the northern and western provinces of Hebei, Shaanxi and Liaoning, the municipality of Tianjin, the Xinjiang Uygur Autonomous Region, and the eastern province of Hunan.

"Nortel's wireless technology is playing a significant role in positioning China Mobile to bring advanced wireless broadband services to millions of people, and ensuring the world's largest GSM operator is well prepared to meet the stringent needs of China's 3G era," said Robert Mao, chief executive officer, Greater China, Nortel. "This current expansion project confirms China Mobile's continued trust in Nortel's wireless broadband technology to improve network efficiencies and help enhance the subscriber experience."

Nortel's end-to-end GSM/UMTS solution will provide network infrastructure, software upgrades and support services, positioning China Mobile to achieve operational efficiencies through reduced network complexity and operating expenses, as well as fast introduction of new, revenue-generating services.

Nortel's GSM/UMTS-based solutions are HSDPA-ready and designed to easily upgrade to support HSDPA through software installation. This gives operators the flexibility to cost-effectively upgrade their networks as needed to boost capacity to meet market demand and deliver faster services.

Nortel has deployed wireless networks in 17 of China's 31 provinces and municipalities, including GSM digital infrastructure equipment for China Mobile affiliate companies in the provinces of Hebei, Shaanxi, Tianjin, Xinjiang, Guizhou, Anhui, Liaoning and Hunan.

In June 2005, Nortel became the first wireless network supplier to complete the TL9000 registration standard for Quality Management System Requirements and Measurements across its end-to-end portfolio of hardware, software and services for HDSPA, UMTS and GSM wireless infrastructure solutions.

Nortel has designed, installed and launched more than 300 wireless networks in over 70 countries. Nortel was the industry's first supplier with wireless networks operating in all advanced radio technologies -GSM/GPRS/EDGE, CDMA2000 1X and 1xEV-DO, UMTS and WLAN, and is the only end-to-end provider of all next generation wireless solutions, as well as edge and core network solutions for IP, ATM and optical transport.

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