China Ministry of Railways Selects Nortel for Wireless Communications Trial


Plans Test of GSM for Railways Digital Technology on World's Highest Rail Line

BEIJING ?March 5, 2004 /Wi-Fi Technology News/- China Ministry of Railways and Nortel Networks* [NYSE/TSX: NT] have signed an agreement under which Nortel Networks will provide a GSM for Railways (GSM-R) digital wireless communications network for trial on the world?s highest rail line ? the Qinghai-Tibet Railway.

GSM-R is a radio-communications system that expands on the GSM (Global System for Mobile Communications) digital wireless standard to provide additional features specifically intended for railway operations.

A landmark project for China's West Development Strategy, the Qinghai-Tibet GSM-R trial is expected to be one of the first in China. More than 84 percent of the 1,142-kilometer Qinghai-Tibet Railway is 4,000 meters or more above sea level. Nearly half is built on perennially frozen earth, requiring advanced technology and extensive experience in network deployment, operation and maintenance.

"Our proven track record in providing end-to-end GSM-R solutions with high reliability and stability positions us to address the stringent geographical and environmental conditions along the Qinghai-Tibet Railway, and to cost-effectively deliver safety and premium services we expect to benefit both passengers and railway employees," said Robert Mao, president and chief executive officer, Greater China, Nortel Networks.

Plans call for the Qinghai-Tibet Railway trial to cover 186 kilometers. It is expected to be the first test track in Asia supported solely by GSM-R ? with no analogue radio system for back-up. It is also expected to be the first in Asia to use GSM-R to transmit safety data for train control, and the first to adopt double coverage solutions to enhance system availability.

Nortel Networks GSM-R infrastructure is designed to enable railway operators to enhance emergency procedures, improve operational efficiency and safety of existing transport systems, and reduce overall cost of operations. It includes GPRS (General Packet Radio Service) for data applications and supports wireless LANs (local area networks) and location-specific services.

Nortel Networks GSM-R infrastructure is also designed to improve network performance, enhance Quality of Service and reliability, and provide clear voice and data communications on trains traveling up to 500 kilometers per hour.

Under the agreement with China Ministry of Railways, Nortel Networks will provide advanced wireless equipment including Intelligent Network (IN), Mobile Switching Center (MSC), Base Station Controllers (BSC) and Base Transceiver Stations (BTS). Nortel Networks will also supply related software and services.

Nortel Networks has been a pioneer in setting GSM-R standards and driving the evolution of GSM-R technology since 1992. With more than 10 years of GSM-R research and development and five years of GSM-R operations with railway leaders in Europe, Nortel Networks is now supplying GSM-R in France, Germany, the UK, Italy and Slovakia. Nortel Networks provided the GSM-R end-to-end system for the new German ICE high-speed line in commercial operation between Frankfurt and Cologne, as well as the high-speed line between Rome and Naples. Nortel Networks has also been selected to deploy a national GSM-R network in France.

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 http://www.nortelnetworks.com.

*Nortel Networks, the Nortel Networks logo, the Globemark and Business Without Boundaries are trademarks of Nortel Networks.

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