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Nokia Closes EUR 1.5 Billion 3G Deal With Orange
URL(s): www.nokia.com
HELSINKI, Finland --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 (euro)
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 wirefree(TM) communications worldwide and one
of the first truly pan-European providers of wirefree(TM) communications services. Orange has
interests in wirefree(TM) 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.
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