Chunghwa Telecom is expanding the capacity of its island-wide GSM (Global System for Mobile Communications) digital cellular network to more than 7.5 million subscribers using core and access technology from Nortel Networks.

Under agreements signed in June and August 2003 and collectively estimated at US$64 million, Nortel Networks is deploying radio, core switching and intelligent network equipment for Chunghwa Telecom to support GSM/GPRS (General Packet Radio Service) wireless voice and data services with carrier-grade network reliability.

The agreements also include upgraded system software that will help position Chunghwa Telecom to drive new revenue opportunities through delivery of advanced wireless services.

"Nortel Networks GSM wireless infrastructure technology will enable us to increase our network traffic handling capacity and allow us to accommodate accelerating subscriber growth in Taiwan," said Chin-Yi Yue, vice president, Chunghwa Telecom. "The upgrade will improve radio frequency (RF) coverage, prepare for seamless 2G/3G interworking, and provide a platform for new revenue-generating services like Personalized-Ring Back Tone, Prepaid Short Message Service, and others."

"We are pleased to continue our long-standing relationship with Chunghwa Telecom," said Jackson Wu, managing director, Taiwan, Nortel Networks. "Nortel Networks built the initial GSM mobile network for Chunghwa Telecom in 1994. Nortel Networks technology is designed to position leading operators like Chunghwa Telecom to meet growing subscriber demand and to lay the foundation for next generation data opportunities."

Nortel Networks has deployed 80 GSM/GPRS digital cellular networks in more than 50 countries, and is supplying GSM/GPRS systems to enable Wireless Data Network services for more than 50 operators around the world. Nortel Networks is the industry's only supplier with Wireless Data Networks operating in all three advanced technologies -- GSM/GPRS/EDGE, CDMA2000 and UMTS.

Chunghwa Telecom is Taiwan's leading telecommunications company, operating both domestically and internationally. The carrier also invests in related businesses and other ventures as authorized by Taiwan's Ministry of Transportation and Communications, and was awarded a 3G WCDMA license in February 2002. Chunghwa Telecom's range of services covers local, long distance and international calls, GSM mobility, data communications, Internet services, broadband networking, satellite communications, intelligent networking, mobile data and multimedia broadband.

Nortel Networks is an industry leader and innovator focused on transforming how the world communicates and exchanges information. The Company is supplying its service provider and enterprise customers with communications technology and infrastructure to enable value-added IP data, voice and multimedia services spanning Wireless Networks, Wireline Networks, Enterprise Networks, and Optical Networks.