Nortel Networks signed a series of contracts estimated at approximately US$280 million to supply China Unicom with CDMA2000 1X digital wireless network infrastructure equipment.

Nortel Networks Univity CDMA2000 1X equipment will be used to expand China Unicom's CDMA (code division multiple access) network capacity in the provinces of Zhejiang, Shandong, Heilongjiang, Henan, and Jiangxi, and in Chongqing municipality. These expansions are expected to be complete within one year.

Nortel Networks Univity solutions will help China Unicom to improve spectrum efficiency and reduce costs. They will also position China Unicom to migrate to an all IP (Internet Protocol) packetized network.

"We are honored to be selected by China Unicom for these significant projects," said Pascal Debon, president, Wireless Networks, Nortel Networks, "and appreciative of the instrumental role the United States government has played in promotion of CDMA technology in China."

"We continue to work closely with China Unicom and other global service providers to deploy Wireless Data Networks that can help position them to drive reduced operating costs, protect capital investments, and drive profits from the growing demand for advanced communication services," Debon said. "We are proud of the market share gains we are making in China, and look forward to sharing in China Unicom's continued success in this important market."

The contracts were announced today at a ceremonial signing in New York City between Debon and Yang Xianzu, chairman, China Unicom. The signing was witnessed by Donald Evans, U.S. Secretary of Commerce, and Zeng Peiyan, chairman, China's State Development Planning Commission.

With a collective population of 387 million people, the five provinces and one municipality covered in the contracts represent 26.2 percent of China's population and 30.6 percent of its gross domestic product.

Nortel Networks and China Unicom have a strong history of working together. In May 2001, China Unicom awarded Guangdong Nortel Telecommunications Equipment Ltd. an estimated US$275 million in contracts to supply CDMA equipment. These networks have been in operation since early 2002.

Nortel Networks recently outlined its new Wireless Data Networks strategy and a new wireless brand -- Univity. Based on packetized voice, all-IP (Internet Protocol) networking, and more spectrally efficient access technologies, this strategy aims to address the industry's changing business needs for migration to next generation technologies, and to reduce the cost of transmitting network traffic by as much as ten-fold.