Nokia and KPNQwest sign a major deal for Pan- European broadband DSL access


Nokia and KPNQwest have signed a contract for the delivery of equipment to provide high-speed broadband access services using Digital Subscriber Line (DSL) technology. KPNQwest will establish the largest pan-European DSL footprint and will be one of the first operators in Europe 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 will launch full commercial services in Germany during the third quarter of this year. The first customers will be connected in Dusseldorf before the end of this quarter. In the next phase, these DSL services will also be rolled out in all European countries as and when deregulation allows.

The ongoing telecom deregulation throughout Europe will provide competitive opportunities for new entrants to gain access to the "last mile" for both residential and business users, where Germany is clearly leading the way in unbundled access. Unbundled access allows new entrants such as KPNQwest to realise true broadband connectivity over existing copper pairs.

"As an integral part of our steps towards pan-European leadership within 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," said Paul van Doorn, Managing Director DSL Business, KPNQwest, "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."

"We are delighted to work with KPNQwest, whose determination to be the leading supplier of fast-access IP data services in Europe will lead us to mutual success," said Mr. Peter Kuhne , Senior Vice President, Europe, Middle East and Africa, Nokia Networks, "We strongly believe this partnership will rewrite the rules of broadband access in Europe and be a key step in the Internet revolution. KPNQwest selected us because we are committed to realising 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"

Nokia is a world leader in the supply of DSL and IP based broadband solutions. The end-to-end solution from Nokia not only includes Broadband IP access system components but also comprehensive Network Management as well as a wide range of services such as system integration and roll-out services. In addition, the deal also includes a suite of additional services including Software Maintenance, Emergency Support, Operations Support, On Site Support, On Site Assistance, Operator Competence Development and First and Second Line Maintenance services.

The Nokia solution not only enables operators like KPNQwest to provide end users fast access to the Internet but also to offer new, exciting services not previously possible, such as remote data access, streaming media for webcasts, hosted applications and interactive video.

About KPNQwest
KPNQwest (NASDAQ & ASE: KQIP) is a leading facilities-based, pan-European provider of data-centric services based on Internet Protocol (IP). It is deploying a technologically advanced 19,000 km fibre-optic network connecting 46 cities throughout Europe and provides a full portfolio of data-centric IP-based services and other advanced telecommunications services, including a pan-European Digital Subscriber Line service. KPNQwest is the one of the largest business ISPs in Europe with operations in 15 countries. KPNQwest has twelve CyberCenters™ and has announced plans to build a further eighteen 10,000m2 CyberCenters across Europe, on its high-capacity fibre-optic network to provide web-hosting, application sharing and telehousing services. Website: www.kpnqwest.com

About Nokia
Nokia is paving the way to the mobile information society with its innovative products and solutions. Nokia is the leading mobile phone supplier and a leading supplier of mobile, fixed and IP networks, related services as well as multimedia terminals. In 1999, net sales totaled EUR 19.8 billion (USD 19.9 billion). Headquartered in Finland, Nokia is listed on the New York (NOK), Helsinki, Stockholm, London, Frankfurt and Paris stock exchanges and employs more than 56 000 people.

Contact information:
Communications Department,
Nokia Networks
Tel. (Int.) + 358 9 5113 8193,
Fax (Int.) + 358 9 5113 8199
Email: nokia.networks@nokia.com
www.nokia.com

Piers Schreiber
KPNQwest Corporate Communications
Tel: +31.23.568.7612
GSM: +44.7711.325.590
Fax: +31.23.568.7900
Email: piers.schreiber@kpnqwest.com