Under a separate agreement also announced today, Hutchison 3G has chosen Nortel Networks* [NYSE/TSE: NT] to provide 10 gigabits per second per channel dense wave division multiplexing (DWDM) optical equipment to light 186k's fibre optic network and to provide the connection between the fibre network and Hutchison 3G's wireless network.

The value of the agreements was not disclosed.

186k's twenty-year agreement will provide Hutchison 3G with 'dark fibre' capacity across its entire network, which will span nearly 2,000 kms and connect 20 major centres of demand across the UK when operational at the end of 2001. Hutchison 3G is the first customer to take advantage of 186k's network, which is designed specifically to carry the huge quantities of multimedia traffic generated by 3G mobile and other broadband services.

Nortel Networks has agreed to install Nortel Networks OPTera Long Haul 1600 Optical Line System, a DWDM solution scaleable to 1.6 terabits per second per fibre. The agreement with Nortel Networks also provides for the Hutchison 3G network to be supported by Nortel Networks Preside* network management, a key part of Nortel Networks Smart Management System. Equipment is expected to be installed at 24 sites and lit in three stages. Completion is scheduled by the end of February 2002.

Colin Tucker, Managing Director of Hutchison 3G said: 'Hutchison is dedicated to making true mobile multimedia a reality in the UK delivering richer, more enjoyable and more relevant content and services to our customers. Achieving this depends on the quality of our backbone and the ability of our suppliers to deliver the network solution to handle the bandwidth demands of true multimedia communications.

'I believe we have chosen the best, complete fibre optic network solution with this agreement. Nortel Networks is the leader in high-capacity, 10 gigabit per second optical communications and 186k's network has the capacity and scalability needed to transfer our multimedia traffic at the speed of light,' Tucker added.

Malcolm Collins, president, next-generation service providers, Nortel Networks EMEA (Europe, Middle East, Africa) said: 'Today's announcement is an excellent demonstration of the fact that communication technologies don't exist in isolation. Third generation wireless and other broadband services cannot exist without optical networks to support them. In winning this contract we demonstrated an understanding of managing wireless and IP traffic on optical networks that enhances our optical networking credentials.'

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Lawrie Haynes, CEO at 186k, said: 'Broadband technologies will only take off in the UK when the network infrastructure exists to carry them efficiently and make sure the user experience is smooth and reliable. Our network has been designed with virtually infinite bandwidth capacity to meet this need and turn broadband hype into reality. 186k's state-of-the-art bandwidth and co-location services will underpin the launch of the UK's only 'pure-3G' mobile operator - Hutchison 3G.'