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February 23, 2004
China Mobile Selects Nortel Networks for Wireless Network Expansion in Hebei Province
World's Largest GSM Carrier Plans to Offer New Advanced Wireless Data Services
BEIJING, CHINA – China Mobile has selected Nortel Networks* [NYSE/TSX: NT] to expand and optimize its GSM digital wireless network in Hebei province under an agreement estimated at US$46 million The agreement covers the first stage of the latest Hebei expansion for China Mobile, the world's largest GSM carrier based on number of subscribers.**
Hebei Mobile, China Mobile's provincial affiliate, plans to use this expansion to offer advanced new wireless services that are expected to help drive new revenue opportunities. The expansion will also position Hebei Mobile to optimize its network to enable reduced operating costs. When completed, the expansion is expected to increase Hebei Mobile's subscriber capacity by approximately 880,000. It is also expected to provide Hebei Mobile with a smooth migration path to third generation (3G) networks. "We are honored to be selected once again by Hebei Mobile for its GSM expansion," said Robert Mao, president and chief executive officer, Greater China, Nortel Networks. “This further demonstrates Nortel Networks technological leadership position in the wireless market. As a long-term strategic ally, we are committed to supporting Hebei Mobile in enabling new, revenue-generating services and applications to be delivered to a larger subscriber base." The expansion agreement calls for Nortel Networks to provide Hebei Mobile with network infrastructure, software upgrades and support services. Nortel Networks deployed the first GSM network for Hebei Mobile in 1995, and has developed a strong business relationship over a series of expansions since then. Nortel Networks has deployed wireless networks in 17 of China's 31 provinces and municipalities. This includes GSM digital infrastructure equipment for China Mobile in the provinces of Hebei, Shaanxi, Tianjin, Xinjiang, Guizhou, Anhui, Liaoning, and Hunan. Nortel Networks has deployed more than 100 GSM/GPRS networks in 50 countries. It is supplying GSM/GPRS systems to more than 50 operators around the world, providing each with a platform for seamless future migration to 3G. Nortel Networks is the industry’s only supplier with Wireless Networks operating in all three advanced technologies – GPRS/EDGE, CDMA2000 1xEV-DO, and UMTS. As a Fortune 500 firm, China Mobile is the world's largest GSM carrier in terms of subscriber numbers.** Mainly supplying mobile telephony, data, IP (Internet Protocol) telephony and multimedia services, China Mobile also provides Internet, fax, data, handset banking, Global Access WAP and a host of other value-added services in addition to basic voice. China Mobile (HK) Co Ltd, in which China Mobile holds major stakes, has issued its shares in Hong Kong and New York. More information on China Mobile is available at www.chinamobile.com.*** 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 Wireless Networks, Wireline Networks, Enterprise 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 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; continued reductions in spending by our customers; fluctuations in operating results and general industry, economic and market conditions and growth rates; the communication by our auditors of the existence of material weaknesses in internal control; the ability to recruit and retain qualified employees; fluctuations in cash flow, the level of outstanding debt and our current debt ratings; the ability to meet the financial covenant in our credit facilities; the use of cash collateral to support our normal course business activities; the dependence on our subsidiaries for funding; the impact of our defined benefit plans and our deferred tax assets on our results of operations, cash flows and compliance with our financial covenant; the dependence on new product development and our ability to predict market demand for particular products; the ability to 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; barriers to 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; changes in regulation of the Internet; the impact of the credit risks of our customers and the impact of customer financing and commitments; stock market volatility generally and as a result of acceleration of the settlement date or early settlement of our purchase contracts; risks associated with a consolidation of our common shares; the impact of supply and outsourcing contracts that contain delivery and installation provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; the future success of our strategic alliances; and the adverse resolution of litigation, intellectual property disputes and similar matters. For additional information with respect to certain of these and other factors, see the most recent Form 10-Q and Form 10-K 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 and Business Without Boundaries are trademarks of Nortel Networks. ** GSM Association ***This is a 3rd party link as described in our Web linking practices. Contact for Press and Analysts:Michelle Wu
Nortel Networks
+8610 6510 7132
wumich@nortelnetworks.com
Dina Yang
Nortel Networks
+8610 6510 7140
dinayang@nortelnetworks.com
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