Nokia and First Telecom Sign Deal for Broadband DSL Access Across Europe - Brief Article

Cambridge Telcom Report, March 27, 2000

Nokia and First Telecom plc, Wednesday have signed a contract to deliver equipment to provide high-speed broadband access services using Digital Subscriber Line (DSL) technology.

This pan-European deal, worth US $60million for the first phase, will mean First Telecom is among the first operators in Europe to significantly expand its service offering to major European cities.

First Telecom will launch full commercial services in Germany during summer this year, in the first phase of their European expansion plans. These DSL services will then be rolled out to France, UK and other European countries.

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 a wide range of services such as network design, business modeling, system integration and roll-out services. In addition, the deal includes also a range 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.

Mr. Marc Daeche, Vice Chairman and co-founder of First Telecom, says: "As a leader in shaping the future of the deregulated European telecoms market, we need to work with partners, which will enable us to achieve our goal. Nokia is best placed to help us achieve this, with its position at the forefront of the DSL market."

DSL is a technology that enables higher bandwidth over copper lines to provide additional services such as streaming media, secure remote work and fast Internet access at connection speeds that typically range from 1.5 Mbps to 6/8Mbps.

The ongoing telecom deregulation throughout Europe will provide competitive opportunities for new entrants to gain access across the "last mile" to both residential and business users and Germany is leading the way in unbundled access.

"We are delighted to work with First Telecom, who are a major player in the challenger-telco market." says Mr. Pekka Vartiainen, Senior Vice President, Europe and Africa, Nokia Networks. "Broadband networks and services are a key step in the Internet revolution and this pan-european deal underlines Nokia's strength as a world leader in Fast Internet Access solutions."

Marc Citron and Mark Daeche founded first Telecom in 1994. European expansion began in the summer of 1997 with the launch of residential services in Germany and France. In October 1998, First Telecom took steps towards developing its own European network installing a fibre optic interconnection between London and Paris.

First Telecom are targeting Small and Medium Enterprises (SME's) via a wholesales model, enabling Internet Service Providers ISPs to bundle fit access technology into their own products.

Nokia's solution not only enables operators like First Telecom to offer 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, and interactive video.

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 55 000 people.