Nokia and Beijing Mobile Communications extend cooperation with GSM network expansion

Nokia has signed a contract with Beijing Mobile Communications Co. (Beijing MCC) for the supply of network equipment to expand the Chinese operator's GSM 900 and 1800 network. Under the terms of the contract, valued at over USD 100 million, Nokia will supply core and radio-access network equipment for the Phase 9 GSM expansion, allowing Beijing MCC to reach a customer base of 10 million subscribers. Nokia will continue as Beijing MCC's sole core-network vendor.

Under the terms of the contract, Nokia will supply a full range of network infrastructure products, including mobile switching equipment, base stations and base station controllers, including the UltraSite base station. Deliveries have started, and the expansion will be operational by the end of the year.

In addition to network equipment, Nokia will provide its Network Deployment Package, which covers implementation and project management, as well as network optimisation services and extensive training solutions to maintain the competitiveness of the network after roll-out.

The expansion is expected to boost Beijing MCC's network capacity significantly, giving the operator the capability of serving 10 million GSM subscribers. Presently, Beijing MCC has a customer base of over four million in the Beijing metropolitan area, including eight suburban districts. Cooperation between the two companies began in 1994.

"Nokia is continuously supporting Beijing MCC to enhance and extend their world-class network in Beijing," says Antti Wäre, Vice President, System Business, Nokia (China) Investment Co., LTD. "Beijing MCC is one of our key customers globally. As a further demonstration of Nokia's localization strategy, all the equipment related to the contract are made and supplied by Nokia Network's joint-ventures in China. Our production here supports not only this, the biggest GSM market in the world, but also the global market as a whole."

Nokia is committed to a long-term development and preferred partnership in China. With innovative technology, Nokia has continuously strengthened its market position as a leading supplier of mobile and broadband network systems and mobile phones in China. China is Nokia's second largest market in the world. Nokia's investment in China has surpassed USD 1.7 billion. Nokia has established over twenty offices, eight joint ventures and one R&D center, with over 5,500 employees in China.

Nokia is the world leader in mobile communications. Backed by its experience, innovation, user-friendliness and secure solutions, the company has become the leading supplier of mobile phones and a leading supplier of mobile, fixed broadband and IP networks. By adding mobility to the Internet Nokia creates new opportunities for companies and further enriches the daily lives of people. Nokia is a broadly held company with listings on six major exchanges.

Further information:

Communications Department, Nokia Networks
Tel. + 358 7180 38195
E-mail nokia.networks@nokia.com

www.nokia.com

Ms. Chen Yuhong
Nokia (China) Investment Co., Ltd.
Communications Manager

Tel: 010-65392828
Fax: 010-65393808