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April 16, 2002
mmO2 Selects Nortel Networks as UMTS Supplier for 3G Networks Across Europe
LONDON – Following an extensive, six-month review of its network architecture and suppliers, mmO2 today confirmed its selection of Nortel Networks* [NYSE/TSE: NT] as one of two major suppliers of General Packet Radio Service (GPRS 2.5G) and Universal Mobile Telecommunications System Third Generation (UMTS 3G) equipment and services for its networks across Europe.
Under an award subject to execution of definitive agreements, mmO2 plans to extend and amend its existing 3G supply agreement with Nortel Networks for the United Kingdom to include 2.5G and 3G core networks and access solutions across additional European networks, including:
- 2.5G core networks in the United Kingdom, Isle of Man, Germany, Ireland and the Netherlands.
- 3G core networks in the United Kingdom, Isle of Man, Germany and Ireland, with a minimum of 30 per cent of its UMTS access solutions requirements across these territories and potential for a further 40 per cent to be awarded on a competitive basis.
- Global System for Mobile (GSM) communications solutions for Digifone in Ireland and Viag Interkom in Germany.
mmO2 and Nortel Networks anticipate completion of definitive agreements in the second quarter of 2002. Until then, the current supply agreement, announced in May 2000, will remain in effect.
"We have always been confident of Nortel Networks ability to provide us with industry leading solutions for rollout of our 3G network in the UK," said John Sammaron, chief technical officer, mm02. "We are now in position to implement our Pan-European 2.5 and 3G strategy, with Nortel Networks helping to ensure 3G becomes a reality in the UK, Germany and Ireland."
"This is an endorsement of Nortel Networks close relationship with mmO2 and an acknowledgement of our 3G capability and leadership position in the supply and implementation of wireless networks," said Pascal Debon, president, Wireless Networks, Nortel Networks. "We will help enable mmO2's strategy of leading the market in mobile data by offering best-in-class performance and cost leadership, enabling them to further strengthen their impact as a major European wireless player."
Nortel Networks is already a leading 3G supplier in Europe. With the addition of Digifone in Ireland under the mmO2 award, Nortel Networks will be implementing UMTS networks in eight European countries. mmO2's award will also extend Nortel Networks existing footprint in Germany and the UK, where the company is currently working with Telefonica and T-Mobile.
Nortel Networks end-to-end UMTS network infrastructure includes: Internet Base Transceiver Stations (BTS); unified packet IP core networks based on Nortel Networks Passport* multiservice switches and Nortel Networks Contivity* VPN switches; network, applications and services management based on Nortel Networks Preside* and Nortel Networks Shasta* 5000 Broadband Service Node; and turnkey network implementation services.
Nortel Networks is an industry leader and innovator focused on transforming how the world communicates and exchanges information. The company is supplying its service provider and enterprise customers with communications technology and infrastructure to enable value-added IP data, voice and multimedia services spanning Metro and Enterprise Networks, Wireless Networks and Optical Long Haul Networks. As a global company, Nortel Networks does business in more than 150 countries. More information about Nortel Networks can be found on the Web at www.nortelnetworks.com.
Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include, among other things: the severity and duration of the industry adjustment; the sufficiency of our restructuring activities, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions; fluctuations in operating results and general industry, economic and market conditions and growth rates; the ability to recruit and retain qualified employees; fluctuations in cash flow, the level of outstanding debt and debt ratings; the ability to make acquisitions and/or integrate the operations and technologies of acquired businesses in an effective manner; the impact of rapid technological and market change; the impact of price and product competition; international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; the impact of rationalization in the telecommunications industry; the dependence on new product development; the uncertainties of the Internet; the impact of the credit risks of our customers and the impact of increased provision of customer financing and commitments; stock market volatility; the entrance into an increased number of supply, turnkey, and outsourcing contracts which contain delivery, installation, and performance provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; the ability to obtain timely, adequate and reasonably priced component parts from suppliers and internal manufacturing capacity; the future success of our strategic alliances; and the adverse resolution of litigation. For additional information with respect to certain of these and other factors, see the reports filed by Nortel Networks with the United States Securities and Exchange Commission. Unless otherwise required by applicable securities laws, Nortel Networks disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
*Nortel Networks, the Nortel Networks logo, the Globemark, Passport, Contivity, Preside and Shasta are trademarks of Nortel Networks.
Contact for Press and Analysts:
Will Cairns
Nortel Networks
+44 (0) 1628 438031
wcairns@nortel.com
Claire Cranton
Nortel Networks
+44 (0) 1628 617178
cranton@nortel.com
David Chamberlin
Nortel Networks
972-685-4648
ddchamb@nortel.com
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