Nokia signs USD 300 Million GSM expansion contract with SMART in the Philippines

Nokia has signed an agreement valued at USD 300 million, with SMART Communications, Inc. for the expansion of its nationwide GSM network in the Philippines. The deal sees Nokia remaining the sole-supplier for SMART's advanced mobile network, the companies having worked together since its launch in 1998.

Nokia will supply and install dual band GSM 900 and GSM 1800 equipment, including mobile switches the revolutionary Nokia UltraSite base stations, which will be ready to support EDGE and WCDMA. Nokia will also supply upgrades for additional General Packet Radio Service capability. This will enable SMART to lay the ground for the introduction of fast Mobile Internet services.

In support of SMART's aim to position itself at the forefront of the Mobile Internet era, Nokia has already supplied its GPRS core network to SMART, which brings packet data access to Internet content over the mobile network. Nokia's standards compliant GPRS system enables operators to be the first to launch fully commercial GPRS services as existing second Generation networks evolve to 3rd Generation.

GPRS offers the ability to introduce time-saving, always on-line services, such as travel schedules, e-shopping applications and entertainment and games.

Napoleon Nazareno, President and CEO, SMART Communications says; "Penetration rates are continuing to grow significantly in the Philippines and Nokia's technology will give SMART the opportunity to meet the future market demand for mobile broadband services. With EDGE and WCDMA ready base stations, not only can we take the advantages of GSM to the limit, but will soon be able to roll out with new applications and services, taking the lead in bringing real benefits to consumers."

"We are delighted to sign this deal with SMART, which takes our relationship towards the 3rd Generation of mobile communications," says Claus Karthe, Director, Business Development, Nokia Networks. "With the supply of the industry leading Nokia UltraSite, SMART will have complete flexibility to configure their network, not only for the huge growth of GSM traffic in the Philippines, but for the rapid introduction of exciting new services."

SMART Communications, Inc., established in 1991, is a joint venture between First Pacific, NTT and several local investors. SMART is licensed to deliver a national cellular mobile telephone system, international gateway facility, paging and local exchange carrier operations. With its analog and digital networks, SMART is now the largest cellular operator in the Philippines.

Nokia is paving the way to the Mobile Information Society with its innovative products and solutions. The company 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, Nokia's 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 60 000 people.

Further information:
Communications Department, Nokia Networks
Tel. + 358 9 5113 8193, Fax + 358 9 5113 8199
Email nokia.networks@nokia.com

www.nokia.com