China Telecom, China's largest fixed-line carrier, has selected Nortel Networks to upgrade its broadband Internet Protocol (IP) networks in Zhejiang and Hubei provinces to address growing customer need for IP services.

China Telecom plans to use these upgrades to extend network capacity and service coverage. This will position China Telecom to offer secure broadband Internet access, broadband content, IP VPNs (Virtual Private Networks), traffic management, and other broadband IP services to business and high-end residential customers in both provinces.

"These two new contracts further demonstrate Nortel Networks leadership position in China's broadband market," said Robert Mao, president and chief executive officer, Nortel Networks China. "Carriers need to provide differentiated services to attract new customers and strengthen customer loyalty. Nortel Networks is well positioned to help China's carriers drive enhanced IP security, productivity and profitability."

Under these contracts, China Telecom will deploy Nortel Networks Shasta 5000 Broadband Service Nodes (BSNs) in Zhejiang, and Shasta 5000 BSNs and Nortel Networks Passport 8600 Routing Switches in Hubei.