Nortel to provide optical networks for Russia's VimpelCom

September 29, 2005 Moscow, Russia -- VimpelCom, one of Russia's largest mobile communications operators, has selected Nortel as the equipment supplier for the operator's next generation optical networks to support its wireless services. The company is to design a dedicated optical network which will help the operator to reduce its current leased line expenditures and support new, revenue generating wireless services.

According to a press release, implementation of the network will be carried out by Nortel's Russian channel partner CJSC "InstalSite" under a two-year frame supply agreement between CJSC "Instalsite" and VimpelCom. CJSC "InstalSite" has already placed orders estimated at $3 million with Nortel for the first equipment deployments.

"We have a long history of collaborating with VimpelCom," remarks Eugeniy Palant, director of business development, CJSC "Instalsite." "Our in-depth knowledge of its operational needs will be invaluable in helping VimpelCom to meet its objectives for its new interregional network."

Over the next two years, VimpelCom says it plans to expand its optical network in several Russian regions using Nortel equipment.

"A scalable, optical network solution enables us to reduce operating costs and provide future-proof capacity for new services," says Sergei Avdeev, vice president and CTO of VimpelCom. "Nortel's longtime experience around the world in implementing next generation optical backbone networks, combined with its deep understanding of the needs of wireless operators, was the key to making our vendor selection."

The network is to carry traditional mobile voice traffic, while also enabling the roll-out of future Ethernet based services. Migration to DWDM will be possible with minimum expenditure, according to Nortel. The network will employ the company's Optical Multiservice Edge 6500 platform, allowing VimpelCom to support high capacity line rates while leveraging the functionality of DWDM and Ethernet technologies.

"The attributes of our optical networks - simplicity, scalability, high security, and flexibility - are designed to provide operators with the ability to increase business efficiency," concludes Igor Marchenko, vice president, Eastern Europe, Nortel. "This is particularly important for large wireless operators like VimpelCom, who have significant operational costs linked to providing backhaul connectivity between base stations, network controllers, and other voice and data networks."