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July 21,2002
Nortel Networks Shasta 5000 BSN to Extend China Telecom, China Netcom IP Services
Businesses in Nine Provinces to Benefit from Secure Services, Broadband Content
BEIJING – China Telecom and China Netcom, China’s two major telecommunications carriers, have selected Shasta* 5000 Broadband Service Node (BSN) from Nortel Networks* to serve as a next generation platform for delivery of secure broadband Internet access, broadband content, Internet Protocol (IP) virtual private networks (VPNs), and other, valued-added IP services to small and medium-sized business customers in nine provinces.
China Telecom plans to deploy Shasta 5000 BSN in Jiangxi, Shaanxi, Guizhou, Zhejiang and Hunan provinces, in Shanghai municipality, and at its Beijing Research Institute. China Telecom also plans to deploy Nortel Networks Passport* 7000 and 15000 Multiservice Switches for the Beijing Research Institute, and Passport 8600 Routing Switch for secure, reliable and intelligent network routing in Shaanxi. Liaoning Communications and Heilongjiang Communications, provincial branches of China Netcom, plans to deploy Shasta 5000 BSNs. "Shasta 5000 BSN will allow China Telecom and China Netcom to aggregate subscribers onto a single platform, while positioning them to offer new, network-based broadband services, and to drive significant reductions in operational costs," said Robert Mao, president and chief executive officer, Nortel Networks China. "As the first network-based firewall solution to gain industry-standard ICSA certification, Shasta 5000 will also position China Telecom and China Netcom to provide their business customers with protection against denial-of-service and hacker attacks on their ‘always on’ broadband Internet connections," Mao said. Nortel Networks Shasta 5000 BSN positions service providers to transition from the simple connectivity model enabled by first-generation subscriber management systems to a cost-effective, network-based, value-added broadband services model. Shasta 5000 supports wholesale dial, DSL, fixed and mobile wireless, metro optical and Ethernet extension, ATM, frame relay, and leased-line subscribers. Shasta 5000 BSN is designed to power the subscriber edge of the network, where ‘last mile’ technologies like cable and DSL meet the Internet backbone, and where broadband subscribers meet broadband content and services. Shasta 5000 BSN enables a wide range of value-added services, including individual profiles for bandwidth and application handling, network-based IP-VPN for business customers, video conferencing, telephony, movies on demand, online gaming, and custom, ICSA.net-certified firewalls. Shasta 5000 BSN integrates with Shasta Service Creation System (SCS) and Shasta IP Services Operating System (iSOS) software to create one of the industry’s most powerful IP subscriber service systems. Nortel Networks leverages smart solutions across all layers of the network to power a new level of intelligence and content awareness. Shasta 5000 BSN was the global market leader in value-added IP services with a 59 percent share for the first quarter of 2002 and 56 percent for the year 2001, according to Infonetics Research. In September 2001, Shasta 5000 BSN was awarded the prestigious Market Engineering Award for Business Development Strategy from Frost & Sullivan. Nortel Networks is an industry leader and innovator focused on transforming how the world communicates and exchanges information. The company is supplying its service provider and enterprise customers with communications technology and infrastructure to enable value-added IP data, voice and multimedia services spanning Metro and Enterprise Networks, Wireless Networks and Optical Networks. As a global company, Nortel Networks does business in more than 150 countries. More information about Nortel Networks can be found on the Web at www.nortelnetworks.com. Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include, among other things: the severity and duration of the industry adjustment; the sufficiency of our restructuring activities, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions; fluctuations in operating results and general industry, economic and market conditions and growth rates; the ability to recruit and retain qualified employees; fluctuations in cash flow, the level of outstanding debt and debt ratings; the ability to meet financial covenants contained in our credit agreements; the ability to make acquisitions and/or integrate the operations and technologies of acquired businesses in an effective manner; the impact of rapid technological and market change; the impact of price and product competition; international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; the impact of rationalization in the telecommunications industry; the dependence on new product development; the uncertainties of the Internet; the impact of the credit risks of our customers and the impact of increased provision of customer financing and commitments; stock market volatility; the entrance into an increased number of supply, turnkey, and outsourcing contracts which contain delivery, installation, and performance provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; the ability to obtain timely, adequate and reasonably priced component parts from suppliers and internal manufacturing capacity; the future success of our strategic alliances; and the adverse resolution of litigation. For additional information with respect to certain of these and other factors, see the reports filed by Nortel Networks with the United States Securities and Exchange Commission. Unless otherwise required by applicable securities laws, Nortel Networks disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. *Nortel Networks, the Nortel Networks logo, the Globemark, Shasta and Passport are trademarks of Nortel Networks. Contact for Press and Analysts:Michelle Wu
Nortel Networks
86 10 6528 8877, x7132
wumich@nortel.com
Daniel Zhao
Nortel Networks
86 10 6528 8877, x7140
danielz@nortel.com
Pat Cooper
Nortel Networks
408 495 9608
pat.cooper@nortel.com
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