Letter of Intent Signed
Nokia Corporation
3 April 2001
NOKIA PRESS RELEASE April 3, 2001
Nokia closes EUR 1.5 billion 3G deal with Orange - provides UMTS
networks to Orange, France Telecom Group, in France, the UK and
Germany
Reinforces Nokia's 3G leadership position
Orange, one of the world's largest mobile operators, owned by
France Telecom, has selected Nokia as the major supplier of its
advanced 3G networks for Itineris in France and Orange in the UK.
At the same time, the 28% Orange-owned MobilCom has chosen Nokia
as a supplier for its 3G network in Germany.
The companies have signed Letter of Intent agreements, with a
total estimated value of EUR 1.5 billion. These groundbreaking
agreements further strengthen Nokia's position as a leading global
3G system supplier.
Under the three-year agreements, Nokia will deliver solutions for
mobile core and radio networks. Nokia becomes the radio-access
network supplier for the 3G network in the UK and a major radio
access network supplier for the 3G network in France. In Germany,
Nokia will provide 3G core network and turnkey implementation of
the radio-access network, including a full range of professional
services and operations support systems. This contract marks
Nokia's 23rd turnkey delivery, making it the world leader in
turnkey network implementation.
The agreements will enable Orange to harness the power of mobility
and the Internet, and build on its existing business to rapidly
address new markets with 3rd Generation high-speed multimedia
services.
Deliveries for the build up of trial 3G mobile networks will start
soon. Volume deliveries for commercial 3G mobile networks will
begin during the second half of this year.
To support the introduction of mobile networks and multimedia
services through these agreements, Nokia will provide a bridge-
financing package for the development of the network, with an
estimated value of over EUR2 billion.
'Orange is a pacesetter in the telecommunications industry and we
have already taken the lead in the development of the mobile
Internet market in Europe. By choosing Nokia as a technology
partner for 3G we can smoothly integrate 3G equipment within our
networks to deliver a unique experience for our wirefree
subscribers,' said Didier Quillot, CEO, Orange France.
'Celebrating our ten-year relationship with Orange in the UK, we
are delighted to be able to support Orange's drive towards 3G
service creation in these key markets within Europe. With the
combined strengths of Nokia's delivery capability and technology
innovation, we will be able to provide an unmatched, coherent,
industry -leading 3G solution for Europe and the world,' said Ukko
Lappalainen, Vice President, Nokia Networks.
These agreements were based on the global framework agreement with
Orange that Nokia announced last November for the supply of full
3G network solutions, including Nokia's unique mobility core and
radio-access technology and services to Orange's affiliate
networks around the world.
Itineris and Orange UK are 100% owned by France Telecom, which
also holds a 28 % stake in MobilCom in Germany.
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 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.
Orange is one of the leading providers of wirefreeT communications
worldwide and one of the first truly pan-European providers of
wirefreeT communications services. Orange has interests in
wirefreeT communications businesses offering a broad range of
voice and data communications. Orange SA is Europe's second
largest mobile operator with operations in 20 countries across
Europe and beyond. Orange aims to have operations in 50 countries
worldwide by 2005.
Further information:
Nokia Networks, Communications Department
Tel. + 358 7180 38193
Email: nokia.networks@nokia.com
www.nokia.com
Notes to Editors:
3G is also known in Europe as UMTS: Universal Mobile
Telecommunications System. 3G is the future of mobile
communications and in Nokia's vision, IP-based technologies will
eventually form the core of the future mobile network. Nokia's
GSM/UMTS system will gradually evolve to an all-IP system, having
3G GPRS network elements as its base.
The 3G system will complement the existing GSM system, not replace
it. It will be the vehicle that provides wireless access to
multimedia services, and a way to provide more voice capacity, or
a mixture of voice and multimedia services.
Latest directors dealings
- 1 hour ago Close Brothers Group
- 1 hour ago Savannah Energy
- 1 hour ago Mid Wynd International Inv Trust
- 2 hours ago Dillistone Group
- 2 hours ago SSP Group