China Mobile (CHL) has selected Nortel (NT) to expand its digital wireless network in six regions under a series of contracts awarded since January of this year and collectively estimated at US$150 million.

The contracts include network optimization services from Nortel to streamline performance of the expanded infrastructure and enhance network productivity while allowing China Mobile to standardize service pricing across all regions.

China Mobile's GSM network expansion in the six regions will increase subscriber capacity by 3.48 million to a total of approximately 18 million. It is expected to improve network coverage and services to remote areas while providing a smooth migration to future 3G services.

The expansion will also support China Mobile's National Rural Network Project in the northern and western provinces of Hebei, Shaanxi and Liaoning, the municipality of Tianjin, the Xinjiang Uygur Autonomous Region, and the eastern province of Hunan.

Nortel's end-to-end GSM/UMTS solution will provide network infrastructure, software upgrades and support services, positioning China Mobile to achieve operational efficiencies through reduced network complexity and operating expenses, as well as fast introduction of new, revenue-generating services.

Nortel's GSM/UMTS-based solutions are HSDPA-ready and designed to easily upgrade to support HSDPA through software installation. This gives operators the flexibility to cost-effectively upgrade their networks as needed to boost capacity to meet market demand and deliver faster services.

Nortel has deployed wireless networks in 17 of China's 31 provinces and municipalities, including GSM digital infrastructure equipment for China Mobile affiliate companies in the provinces of Hebei, Shaanxi, Tianjin, Xinjiang, Guizhou, Anhui, Liaoning and Hunan.

In June 2005, Nortel became the first wireless network supplier to complete the TL9000 registration standard for Quality Management System Requirements and Measurements across its end-to-end portfolio of hardware, software and services for HDSPA, UMTS and GSM wireless infrastructure solutions.

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