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Technology Stocks : Nokia (NOK)
NOK 6.845+0.5%Nov 5 3:59 PM EST

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To: Ruffian who wrote (18993)3/20/2002 4:02:03 PM
From: Eric L  Read Replies (1) of 34857
 
re: Rumors aside - Nokia and Hutchison 3G's UK Build

<< Hutchison 3G Shifts London Project From Nokia to NEC-Siemens Pairing >>

>> Despite Speculation To The Contrary, Nokia And NEC Are Sharing The Value Of Hutchison 3G's Uk Build

Siemens and NEC appear to be making a meal of an agreement struck in 2001 concerning the build-out of Hutchison 3G's radio network in the U.K., according to spokespeople for the UMTS license holder.

Media reports continue to suggest that Siemens and NEC had managed to snatch away from Nokia the lucrative UMTS network build-out contract for the south of the U.K.

Siemens has reportedly claimed that this is more lucrative than the deal with Hutchison 3G for the north of the U.K., for which Nokia is responsible.

But Hutchison 3G has confirmed that the contracts were awarded in the middle of 2001, and that the deals are worth the same amount of money (not specified).

"In July 2001, Hutchison 3G made a final decision about the division of its U.K. radio contract," said Colin Tucker, managing director, Hutchison 3G. "Nokia was made responsible for the network in the north and NEC for the network in the south. There has been no further change to the contract since then. The radio contract has always been shared 50/50 between Nokia and NEC, as has the value. Both companies are delivering to schedule and Hutchison 3G is on track with its network roll-out."

Tucker added: "Nokia is building Hutchison 3G's core network."

Indeed, Hutchison announced as early as April 2001 in a public statement that: "The contract to supply the core network, including 3G packet core elements and 3G mobile switches, has been awarded to Nokia. The radio access network contract, including base station controllers and base stations, has been awarded jointly to NEC and Nokia. These agreements are for an initial period of three years and will deliver a complete range of 3G mobile network infrastructure to Hutchison 3G." It is believed the deal with Nokia included vendor financing.

Hutchison 3G, which is 65% owned by Hutchison Whampoa, 20% by NTT DoCoMo and 15% by KPN Mobile, has stated that it will launch UMTS service in the U.K. before 2003. <<

- Eric -
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