NORTEL Networks wins $270 million contract for China Unicom

<br>TORONTO (AP) _ Canada's Nortel Networks, which has cut jobs and forecast record losses in recent days, said it has agreed to two contracts to provide wireless infrastructure, including a $270 million

Friday, June 22nd 2001, 12:00 am

By: News On 6

TORONTO (AP) _ Canada's Nortel Networks, which has cut jobs and forecast record losses in recent days, said it has agreed to two contracts to provide wireless infrastructure, including a $270 million deal with China Unicom.

Nortel will provide switching, radio base stations and transmission equipment for mobile communications to China Unicom, which aims to introduce high-speed wireless Internet services across China.

The expansion will increase the potential number of China Unicom subscribers served by Nortel systems to 11.6 million, from 7.1 million. Nortel has won wireless network awards in 17 of China's 31 provinces, and so far this year has signed contracts in China valued at $844 million.

In the second deal, Nortel will supply high-speed wireless Internet equipment and services to Portuguese wireless operator Oni Way to help it build its network in that country's south, including Lisbon. No financial details of the deal were disclosed.

It will make Oni Way the first operator in Portugal to launch a high-speed universal mobile telecommunications system network.

The two deals, which were announced Thursday, are ``decent'' said Paul Sagawa, an analyst with investment bank Sandford Bernstein and Co. However, they are dwarfed by Nortel's announcement last week that it expects to report a second-quarter loss of $19.2 billion. Nortel has announced 30,000 job cuts this year.

Nortel shares closed up 46 cents to $12.76 on the Toronto Stock Exchange Thursday, ending a 12-session losing streak during which the stock fell as low as $11.75 on Wednesday.

While telecom providers across the globe cut back on spending, some operators are still building wireless infrastructure.

``Wireless overall as an industry is growing this year,'' Sagawa said. ``And Nortel's growing in wireless this year.''

Other areas of Nortel's business, mainly fiber-optic network building, have slumped.