One of Guangdong Nortel's core values is to innovate and help customers define their future. By means of continuing oriented investment and enhancing its R&D force, Guangdong Nortel has formed a localized R&D team with strong R&D capabilities. At the beginning of 2005, Guangdong Nortel invested about USD 4 million to expand its R&D Center and increased the R&D team to 800. By working with Nortel's global R&D network, Guangdong Nortel has been committed to the research of 3G services, NGN and network converging solutions, and providing customers with leading network transformation solutions in the industry.

Optimization of R&D environment: about $4millions additional investment on R&D center in 2005.

- Enhancement of R&D team: build a 800-people R&D force at the end of 2005
- Committed to the R&D of 3G and VoIP and become an important part of Nortel Global R&D to undertake the R&D tasks for Nortel international market.

Full development of the core competence of GDNT in network convergence:

> Eliminate the boundary of wireless and wireless network
> Eliminate the boundary of telecommunication networks and enterprise networks