According to Nortel, the company has won a contract from Zhejiang Mobile, which is a subsidiary of China Mobile, to upgrade its optical backbone network in Zhejiang province. The upgrade will improve Zhejiang Mobile's current network and increase bandwidth in order to prepare it for 3G mobile communications. The upgrade will be ready by September 2005.

Zhejiang Mobile's subscriber base stood at 220.5 million at the end of May.