Firms Team to Offer High-Speed Wireless Services

Cable & Wireless HKT Ltd. and Nokia Corp. Tuesday achieved two
milestones in high-speed mobile communications marking the completion of
all 3rd Generation test trials, and the provision of Hong Kong’s first
commercially-available High Speed Circuit Switched Data service.

The completion of high-speed trials makes the two companies well
positioned to provide 3G services in Hong Kong.

After completing the first phase of basic functional trials in February,
the second phase 3G trials involved more intensive testing of wireless
direct memory access to determine the experimental system’s technology and
features, including power control and handover capabilities.

During the trials, data calls with bit rates up to 384 KBPS were
successfully transmitted. These advancements in the high-speed wireless
system help achieve call stability and reliability, two critical factors
for transmitting large volumes of data over a mobile network in a
high-density environment like Hong Kong.

With this launch of Hong Kong’s first HSCSD service at a speed of 43.2
KBPS, mobile data service customers can enjoy high-speed wireless data
transmission when using appropriate card phone models connected to a
designated dial-up number.

Additionally, the testing milestones make Cable & Wireless HKT Mobile
Services ready to offer General Packet Radio Service
capabilities as powered by Nokia Networks . With the
successful testing of the Nokia GPRS network, Cable & Wireless HKT Mobile
Services may explore deploying innovative mobile applications that enable
total IP mobility.

Adam Wong, Cable & Wireless HKT Mobile Services director of mobile
networks, said its 3G systems developments are the firm’s top priority in
order to lead the mobile industry by deploying the latest technologies in
Hong Kong.

“These trial results will be most constructive in our future service
planning and enhancements, Wong said. “With Nokia, we are committed pushing
the limits of 3G communication.”

Jonathan Yip, Nokia Networks general manager, said the completion of the 3G
trial marks a major step its migration toward next-generation mobile
communications services in Hong Kong.

“Sharing the same vision to make the Internet a pervasive tool for
everyone, Nokia and Cable & Wireless HKT Mobile Services will continue
working hand-in-hand to bring the latest technology and quality services to
local mobile users,” Yip said.

Cable & Wireless HKT, a Cable &
Wireless
company, is one of Hong Kong’s first
full-service communications providers. It provides an array of voice and
data telecom services over its fully digital fiber optic network, including
basic and mobile telephony, fax and data products, and Internet access.

In related news, Nokia and KPNQwest
Tuesday signed a long-term contract to develop Pan-European Digital
Subscriber Line access.

The Nokia and KPNQwest deal intends to deliver
high-speed broadband access services using DSL technology later this year.
KPNQwest is constructing one of the largest pan-European DSL footprints
built to significantly expand its service offering in broadband access to
major European cities.

As part of the first phase of its European expansion plans, KPNQwest plans
launch commercial services in Germany during the third quarter of this
year. The first customers are scheduled to be connected in Dusseldorf
before the end of the second quarter.

In the second phase of deployment, DSL services will be rolled out in all
European countries when deregulation allows.

The ongoing telecom deregulation throughout Europe provides competitive
opportunities for new entrants to gain

access to the last mile delivery
systems for both residential and business users, where Germany is clearly
leading the way in unbundled access. Unbundled access allows companies like
KPNQwest to deploy broadband connectivity over existing copper lines.

Paul van Doorn, KPNQwest managing director of DSL business, said
deregulation is an integral part of its work toward establishing
pan-European leadership in the business customer segment.

“We focus on selecting the best technology for the broadband paradigm and
working with partners who will enable us to achieve our goal,” van Doorn
said. “Nokia is best placed to help us achieve this, with its position at
the forefront of the DSL market and its outstanding global service offering.”

Peter Kuhne, Nokia Networks senior vice president of Europe, Middle East
and Africa, said the firm is delighted to work with KPNQwest to supply
fast-access IP data services in Europe.

“We strongly believe this partnership will rewrite the rules of broadband
access in Europe and be a key step in the Internet revolution,” Kuhne said.
“KPNQwest selected us because we are committed to realizing the fastest
pan-European DSL roll-out and we have a future proof platform which will
enable KPNQwest to offer the highest speeds available over a copper pair
with ADSL and migrate to VDSL in the near future.”

Headquartered in Finland, Nokia is paving the way to develop high-speed
mobile data products and solutions. The company is one of the leading
mobile phone suppliers worldwide, as well as an avid developed of its
mobile, fixed and IP networks.

Nokia is also a world leader in the supplying DSL and IP based broadband
solutions. The end-to-end solution from Nokia includes broadband IP access
system components and network management. The Nokia solution not only
enables operators like KPNQwest to provide end users fast access to the
Internet but also to offer new services including remote data access,
streaming media, and hosted applications.

KPNQwest is a facilities-based, pan-European data-centric service provider
based on IP technology. It is deploying an advanced 19,000-km fiber optic
network connecting 46 cities throughout Europe to develop a full portfolio
of data-centric services.

KPNQwest is the one of the largest business ISPs in Europe with operations
in 15 countries out of a dozen data centers. The firm announced plans to
build an additional eighteen data centers across Europe to provide
web-hosting, application sharing and data storage services.

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