In Asia Pacific, Nortel is a recognised leader in delivering communications capabilities that enhance the human experience, ignite and power global commerce, and secure and protect the nation's most critical information. Nortel has been active in the region for more than three decades - making its first sales into China in 1972 and, in the early 80s, becoming the first foreign manufacturer selected to supply network switching equipment in Japan. Today, Nortel delivers network infrastructure and communications solutions to carrier, service provider and enterprise customers across the Asia Pacific region.

A market leader in many countries throughout the region, Nortel counts the majority of Asia's tier 1 carriers among its key customers - Japan's NTT and KDDI; PRC's China Telecom, China Netcom and China Unicom; Korea's KT and SK Telecom; Taiwan's Chunghwa Telecom; Singapore's SingTel, Australia's Telstra and Optus; India's Reliance Infocomm and BSNL; and Hong Kong's PCCW.

Asia Pacific leadership benchmarks include:

• Delivering high-performance optical infrastructure solutions to China, with more than 50 10G and DWDM optical network contracts spanning over 60,000km.
• Deploying India's largest optical network, a 60,000km national backbone for Reliance Infocomm.
• Providing a high-capacity optical SDH backbone, spanning 35,000kms for Bharti Telesonic's OneIndia brand, and a fixed-line Bharti TouchTel network in New Delhi and the state of Haryana.
• Securing 90 percent of the metro optical DWDM network market in both Korea and Japan.
• Providing the Philippines' first 10G DWDM network.
• Deploying the first CDMA2000 1xEV-DO 3G networks in Australia, Indonesia and Taiwan.
• Implementing Asia's first GSM-R (GSM for Railways) networks in China and India.
• Deploying city-wide Wireless Mesh Network solutions in Taiwan's two largest centers, Taipei and Kaohsiung.
• Leading India's rapidly growing call centre and BPO (business process outsourcing) market, with 16,000 agent positions deployed.
• Supplying major optical and wireless network infrastructure and equipment to Telstra and Optus in Australia.
• Securing the largest tender in the world for the expansion of cellular services in India from Bharat Sanchar Nigam Limited (BSNL), India's largest telecommunications company, to expand the operator's GSM/GPRS digital wireless network in the East and South zones of India by rolling out seven million new cellular mobile lines.

Worldwide, Nortel is focused on innovation. Research and development (R&D) is the foundation of its business, enabling Nortel to focus on its continued technology leadership, and the delivery of high-performance networks to its customers.

In the Asia Pacific region, Nortel operates two world-class R&D facilities in China.

China

• Guangdong Nortel Technology Center -Established in December 1995, Guangdong Nortel R&D Center is the core technology division of Guangdong Nortel Telecommunications Equipment Company Limited. The centre now focuses on wireless technologies, including GSM, UMTS and CDMA, as well as data and next generation network (NGN) product development. The centre also provides support in the verification and certification of various products, as well as technical support to ensure new products can be smoothly adapted for the China market.
• Nortel China R&D Center - The R&D centre was established in early 2001 to efficiently and cost-effectively meet the particular requirements of China customers. The core business of the R&D centre is the development of Wireless OA&M systems and solutions, Optical transmission equipment and OA&M, and NGN products and solutions. The R&D centre's work will help establish the most advanced 21st century network infrastructure for China.

China

In China Nortel has four manufacturing facilities, comprising one wholly owned subsidiary, Nortel Communications Equipment, and three joint venture operations.

• Nortel Communications Equipment (Shanghai) Co. Ltd. - Established in 2002, Nortel Communications Equipment is located in the Waogaoqiao Bonded Zone of Shanghai's Pudong area. The facility focuses on production, sales, system integration and related technical services for optical communications equipment, as well as other communications equipment, related parts and software.
• Guangdong Nortel Telecommunications Equipment Co. Ltd. - Established in 1995, Guangdong Nortel Telecommunications (GDNT) is Nortel's largest joint venture in China. Based in Shunde, Guandong province, this flagship joint venture designs, engineers, manufactures, sells, installs and services GSM 900/1800 and CDMA wireless network equipment, as well as Nortel digital switching systems. Customers include China Telecom, China Unicom and China Mobile as well as other carriers across the Asia Pacific region.
• Shenyang Nortel Telecommunications - Founded in 1995, in association with the Liaoning Telecommunications Services Co. Ltd and Liaoning Energy Investment Group Co., Ltd., the Shenyang Nortel facility manufactures and markets high-capacity SDH transmission systems.
• Nortel Communications Engineering Co. Ltd. - Established in 1993 with the Xi'an Institute of Post and Telecommunications and China International Telecommunications Construction Corporation, this Xi'an-based facility provides technical training as well as technical support and installation services for Nortel DMS switching systems, and for its GSM and CDMA solutions in China. The joint venture has branch offices in Zhejiang and Shaanxi provinces and has trained more than 10,000 communications professionals.

Korea

In January 2005, Korea's LG Electronics and Nortel signed a MoU to establish a joint venture to provide high quality, leading edge telecommunications equipment and networking solutions to Korea and global markets. It is also Nortel's intent for the joint venture to market the entire Nortel portfolio of optical, wireless, wireline and enterprise products in Korea and, based on mutual discussion, in other markets as well.

India

As one of the world's largest buyers of Indian technology, Nortel has established R&D outsourcing partnerships with four of India's leading software houses - Tata Consulting Services (TCS), Infosys, WIPRO and Sasken Technologies. All major Nortel Technology labs around the world have assigned part of their development activity to India.

In April 2005, Nortel invested US$10 million in Sasken Technologies for an undisclosed stake in Sasken's fully diluted equity, and signed an agreement under which they will continue to work together to develop new software and deploy Nortel networking solutions.

As a leader in networking, Nortel provides Asia Pacific customers with the critical services necessary to successfully design, deploy, manage and maintain today's multi-vendor networks and to make the transition to tomorrow's converged network infrastructure. Through its strong commitment to customer service, Nortel consistently deploys and services customer networks rapidly, efficiently and reliably.

Within Asia Pacific, Nortel reaches 22 countries with support staff strategically located throughout the region including:

• Technicians providing 24x7x365 emergency, technical and field trial support.
• Dedicated field engineers, software engineers and technicians.
• Project managers.
• Managed services professionals monitoring customer networks 24x7x365.