O2 expands Nortel Networks role in UMTS buildout

October 13, 2004

O2 has expanded Nortel Networks role as an infrastructure supplier of 3G UMTS wireless infrastructure for O2's networks across the UK, Germany and Ireland. Nortel Networks will also provide some network engineering and radio optimisation services.

Under an extension to an existing supply agreement with Nortel Networks, O2 will deploy UMTS radio equipment in Eastern and Southern Germany (including Berlin) and across most regions of the British Isles. Nortel Networks was previously selected by O2 to provide GPRS and UMTS core networks.

Infrastructure deployments will expand network coverage into new regions in the UK and Germany, and position O2 to drive new revenue opportunities by offering advanced data services like mobile e-mail, video calling, mobile Internet browsing, and MMS including streaming video and localised, personalised content.

"Nortel Networks will provide the necessary reliability and scalability to deliver an outstanding 3G network and will allow us to use these 3G capabilities to launch world-class services to our customers across the UK, Ireland and Germany," said Dave Williams, Group Chief Technology Officer, mmO2.

"We continue to see progress in the rollout of UMTS and this is another step in our continued strategy in enabling a new era of broadband mobile service," said Peter MacKinnon, president, GSM/UMTS, Nortel Networks. "We are delighted with O2's decision to expand the scope of our contribution to their European network."

The contract extension expands the scope of an existing supply agreement signed by Nortel Networks and O2 on October 31, 2002. Following O2's audit of suppliers, Nortel Networks was selected as one of two infrastructure suppliers in April 2002. At that time, O2 stated that additional deployments would be awarded based on performance at a later date. This latest contract is with mmO2 Limited and O2 Operating Companies (O2 UK, O2 Ireland and O2 Germany). O2 Limited is a subsidiary of mmO2.

Nortel Networks will supply O2 with products from its Base Transceiver Station (BTS), Mobile Switching Center (MSC), Radio Network Controller (RNC), and Data Packet Core (GGSN, SGSN) technology portfolios. Nortel Networks wireless equipment is designed to easily migrate with cost-effective, modular upgrades to support higher bandwidth 3G technologies. This can eliminate the costly need to replace hardware and streamline deployment to speed time-to-market for services.