Nortel Networks wins framework deal in China to supply switching centres

BEIJING (CP) - Nortel Networks (TSX:NT) says China's Ministry of Railways has signed a framework agreement for Nortel to provide switching centres to enable digital mobile signalling and communications along passenger lines in 20 of China's 31 provinces. Financial details were not disclosed in a release Friday.

Nortel's GSM-R switching centres will cover nearly half of China's national railway footprint, serving conventional railway lines and planned high-speed lines. Seven switching centres will be deployed at key locations, supplementing two set up in 2005.

China's selection of Nortel switching centres "puts us in a favourable position for future business as China furthers its commitment to GSM-R for railway communications," said Robert Mao, CEO of Nortel's Greater China unit.

"To further enhance the experience of millions of passengers travelling China's railways each day, a comprehensive and advanced communications network will help China power the rapid growth of its railway network and, in particular, its migration to 200-to 300-kilometre per hour fast trains."

Toronto-based Nortel has been selected to deploy GSM-R networks in nine countries, including France, Britain and Germany.

© The Canadian Press, 2006