Nortel Networks has been selected with Marconi Communications to work with Railtrack and Alstom as the preferred bidder for a new GSM-R network to be installed along the UK's West Coast Mainline (WCML) railway line. This work is part of a larger project to completely refurbish the WCML.

Nortel Networks has also signed a supply agreement with Italian service provider Sirti for a complete GSM-R network between Rome and Naples, with other Sirti rail lines open for bid. Sirti has been selected as the telecommunications prime contractor for the Rome-Naples rail line, whose GSM-R network is scheduled to go live in 2002.

Earlier this year, Mannesmann Arcor awarded Nortel Dasa, the German joint venture of Nortel Networks and DaimlerChrysler Aerospace AG, a frame contract to supply the world's largest GSM-R network. Mannesmann Arcor will operate the network for Deutsche Bahn AG, Germany's national railway operator and one of Europe's most important railway systems.

The telecommunications aspects of the WCML refurbishment project are being executed against the European Rail Traffic Management System (ERTMS) standards, which set guidelines for various aspects of train control and signaling. Other countries in Europe have also adapted this standard, of which GSM-R is an important component.

"Nortel Networks was chosen for this very critical technology because of the end-to-end performance of their GSM-R product against the ERTMS standards," said Neil Sutcliffe, managing director, strategic networks, Marconi Communications.

"Nortel Networks has been leading the development of GSM-R since standards work began in 1992," said Cesar Cesaratto, president, Wireless Solutions, EMEA (Europe, Middle East, Africa), Nortel Networks. "As the market implements the GSM-R and ERTMS standards for railway signaling, we expect to continue our leadership position in Europe, having won three out of the last four GSM-R agreements."

Nortel Networks' GSM-R technology, along with other elements of the WCML revitalization project, is expected to create significant operational improvements and higher passenger satisfaction. Trains will be able to travel at up to 140 miles per hour, and available rail capacity is expected to double while maintaining the highest safety standards.

The Nortel Networks GSM-R solution works with existing public and private networks, enabling operators to offer virtual private networks and other specialized services. It also provides a smooth transition to GPRS (General Packet Radio Service), a packet-based technology for GSM and TDMA operators that will support data speeds up to 170 kilobits per second in the near future.

Nortel Networks delivers value to customers around the world through Unified Networks* solutions, spanning mission-critical telephony and IP-optimized networks. Customers include public and private enterprises and institutions; Internet service providers; local, long-distance, cellular and PCS communications companies, cable television carriers, and utilities.

Nortel Networks' common shares are listed on the New York, Toronto, Montreal and London stock exchanges. Nortel Networks had 1998 revenues of US$17.6 billion and has approximately 70,000 employees worldwide.