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Hutchison Telecom Vietnam, In Cooperation with Hanoi Telecom, Selects Nortel Wireless Broadband Technology for Vietnam's Nationwide CDMA2000 1X Network

  • 19 July, 2005 13:19

<p>HANOI, Vietnam - Hutchison Telecommunications (Vietnam) S.À R.L. (Hutchison Telecom Vietnam), in cooperation with Hanoi Telecommunications Joint Stock Company (Hanoi Telecom), has selected Nortel* [NYSE/TSX: NT] to build a nationwide CDMA2000* 1X network in Vietnam. When this network is completed, it will enable delivery of advanced broadband mobile services in Vietnam.</p>
<p>Under terms of the contract, Nortel will be the infrastructure supplier for what is expected to be Vietnam's first nationwide wireless broadband network. This network will use CDMA2000 1X and 1xEV-DO (Evolution-Data Optimized) technology, which is designed to compete with wireline broadband data speeds.</p>
<p>"We are pleased with awarding the network contract to Nortel," said Dennis Lui, chief executive officer, Hutchison Telecommunications International Limited [SEHK: 2332, NYSE: HTX], the parent company of Hutchison Telecom Vietnam. "With Nortel's advanced telecommunications technology, combined with our marketing and operational expertise, we will be well-positioned to establish a leading operation in a telecom market that has huge growth potential."</p>
<p>"We chose Nortel for this solution because of its proven track record in deploying wireless broadband networks across the globe," said Dr. Pham Ngoc Lang, chairman of the Board of Management, Hanoi Telecom. "We are confident that their experience will help us fast-track communication infrastructure development in Vietnam."</p>
<p>Hutchison Telecom Vietnam and Hanoi Telecom entered into a Business Cooperation Contract in July 2004 to build, construct and operate a CDMA2000 network in Vietnam.</p>
<p>"This strategic win emphasizes our commitment to working with Hutchison Telecom Vietnam and Hanoi Telecom to bring the benefits of wireless communications to a broader section of Vietnamese society," said Chang-Lung Ng, managing director, Nortel Vietnam. "Leveraging our advanced telecommunications technology will help drive national prosperity and deliver the competitive benefits of the global Internet economy."</p>
<p>"Nortel is very committed to the Asia market," said Steve Pusey, president, EMEA (Europe, Middle East, Africa) and Asia, Nortel. "We're delighted to be working with Hutchison Telecom Vietnam and Hanoi Telecom on this 'greenfield' project to bring the most advanced technology to bear in Vietnam."</p>
<p>As part of the agreement, Nortel will provide CDMA2000 1X radio base stations, base station controllers, switching platforms and other related equipment. Nortel will also supply CDMA2000 1xEV-DO equipment and additional services necessary to successfully design, build and integrate the new network.</p>
<p>Nortel supplies EV-DO equipment to 12 of the 21 operators across the globe currently offering commercial EV-DO service, including Verizon Wireless in the United States, Vesper in Brazil, Smartcom in Chile, Pelephone in Israel, Asia Pacific Broadband Wireless in Taiwan and Telstra in Australia. Nortel also provided EV-DO equipment to Eurotel for the first commercial 450 MHz EV-DO service in Eastern Europe. With its CDMA equipment designed to support 1xEV-DO through modular upgrades to existing hardware, Nortel re-uses existing base station equipment to help operators reduce or eliminate the need for costly hardware replacements.</p>
<p>Nortel has designed, installed and launched more than 300 wireless networks in over 70 countries. Nortel was the first supplier with wireless networks operating in all advanced radio technologies and is the only end-to-end provider of all next generation wireless solutions.</p>
<p>About Hutchison Telecommunications International Limited</p>
<p>Hutchison Telecommunications International Limited (Hutchison Telecom) is a leading global provider of telecommunications services, with operations in eight markets around the world. As of 31 March 2005, Hutchison Telecom has 13.3 million mobile customers. It operates mobile and fixed telecommunications services in Hong Kong and mobile services also in Macau, India, Israel, Thailand, Sri Lanka and Ghana, with Vietnam intending to commence service. It was the first provider of 3G mobile services in Hong Kong, where it also provides broadband and fixed-line telecommunications services. Hutchison Telecom operates common brands across its business including "Hutch," "3" and "Orange". It is a listed company whose American Depositary Shares are quoted on the New York Stock Exchange under the ticker HTX and shares are listed on the Hong Kong Stock Exchange under the stock code 2332.</p>
<p>A subsidiary of the Hong Kong-based Hutchison Whampoa Group, Hutchison Telecom is dedicated to providing superior telecommunications services in markets with high growth potential. See www.htil.com.**</p>
<p>About Hanoi Telecommunications Joint Stock Company</p>
<p>Hanoi Telecommunications Joint Stock Company (Hanoi Telecom) is a Vietnamese corporation established under Prime Minister's approval in 2001 with full licenses that to date has been providing Internet as well as Voice over IP services in Vietnam.</p>
<p>The majority of shares of Hanoi Telecom are owned by the Vietnam Government through two entities, Hanel and HTI. These two entities have been involved in a wide range of businesses in Vietnam for over 20 and 50 years respectively, including telecom software, manufacturing and integration of electric and electronic appliances, PCs and consumer products, as well as owning and operating a hotel, office blocks, and serviced apartments.
Hanoi Telecom obtained a spectrum license to provide CDMA mobile services since 2003.</p>
<p>About Nortel</p>
<p>Nortel is a recognised leader in delivering communications capabilities that enhance the human experience, ignite and power global commerce, and secure and protect the world’s most critical information. Serving both service provider and enterprise customers, Nortel delivers innovative technology solutions encompassing end-to-end broadband, Voice over IP, multimedia services and applications, and wireless broadband designed to help people solve the world’s greatest challenges. Nortel does business in more than 150 countries. For more information, visit Nortel on the Web at www.nortel.com. For the latest Nortel news, visit www.nortel.com/news.</p>
<p>-end-</p>
<p>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 outcome of regulatory and criminal investigations and civil litigation actions related to Nortel's restatements and the impact any resulting legal judgments, settlements, penalties and expenses could have on Nortel's results of operations, financial condition and liquidity, and any related potential dilution of Nortel's common shares; the findings of Nortel's independent review and implementation of recommended remedial measures; the outcome of the independent review with respect to revenues for specific identified transactions, which review will have a particular emphasis on the underlying conduct that led to the initial recognition of these revenues; the restatement or revisions of Nortel's previously announced or filed financial results and resulting negative publicity; the existence of material weaknesses in Nortel's internal control over financial reporting and the conclusion of Nortel's management and independent auditor that Nortel's internal control over financial reporting is ineffective, which could continue to impact Nortel's ability to report its results of operations and financial condition accurately and in a timely manner; the impact of Nortel's and NNL's failure to timely file their financial statements and related periodic reports, including Nortel's inability to access its shelf registration statement filed with the United States Securities and Exchange Commission (SEC); ongoing SEC reviews, which may result in changes to Nortel's and NNL's public filings; the impact of management changes, including the termination for cause of Nortel's former CEO, CFO and Controller in April 2004; the sufficiency of Nortel's restructuring activities, including the work plan announced on August 19, 2004 as updated on September 30, 2004 and December 14, 2004, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions; cautious or reduced spending by Nortel's customers; increased consolidation among Nortel's customers and the loss of customers in certain markets; fluctuations in Nortel's operating results and general industry, economic and market conditions and growth rates; fluctuations in Nortel's cash flow, level of outstanding debt and current debt ratings; Nortel's monitoring of the capital markets for opportunities to improve its capital structure and financial flexibility; Nortel's ability to recruit and retain qualified employees; the use of cash collateral to support Nortel's normal course business activities; the dependence on Nortel's subsidiaries for funding; the impact of Nortel's defined benefit plans and deferred tax assets on results of operations and Nortel's cash flow; the adverse resolution of class actions, litigation in the ordinary course of business, intellectual property disputes and similar matters; Nortel's dependence on new product development and its ability to predict market demand for particular products; Nortel's 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 and consolidation in the telecommunications industry; changes in regulation of the Internet; the impact of the credit risks of Nortel's customers and the impact of customer financing and commitments; stock market volatility generally and as a result of acceleration of the settlement date of Nortel's forward purchase contracts; negative developments associated with Nortel's supply contracts and contract manufacturing agreements, including as a result of using a sole supplier for a key component of certain optical networks solutions; the impact of Nortel's 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; and the future success of Nortel's strategic alliances. For additional information with respect to certain of these and other factors, see the most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed by Nortel with the SEC. Unless otherwise required by applicable securities laws, Nortel disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.</p>
<p>*Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks.</p>

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