The next generation optical network will span north, south and southwest China, providing China Telecom with massive bandwidth and levels of intelligence. The company’s aim is to capitalize on the exponential growth of the all-optical, high-performance Internet.

This deal reaffirms Nortel Networks position in Asia a market that is looking in considerably better status than the telecoms markets in Europe or the US. Nortel Networks now has over 20 contracts in China.

We are working closely with China Telecom to unleash the potential of the high-performance Internet in China, said Masood Tariq, president, Nortel Networks Asia in a company statement. This contract furthers our goal to ensure that China enhances and extends its competitive advance as a leading ‘Internet nation.’ Nortel Networks Optical Internet capabilities will be at the heart of China’s high-performance Internet, which will rank among the fastest, most reliable and highest quality anywhere in the world.

Along with the national, multiservice ATM network we’re also building for China Telecom, this long haul optical network project clearly illustrates how well we’re working together to address China’s networking and Internet needs, said Robert Mao, president and CEO, Nortel Networks China. Both contracts are testimony to the excellent levels of service and support we’re delivering to our valued customers in China and to the strategic, fast-growing Asian market.