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April 23, 2002
Pelephone Selects Nortel Networks to Build $US150 Million CDMA Network in Israel
TEL AVIV, Israel – Pelephone, Israel's second largest wireless operator, has selected Nortel Networks* [NYSE/TSE: NT] to build the country’s first CDMA2000 1X third generation (3G) digital wireless network, the companies announced today.
Under terms of a two-year agreement estimated to be worth approximately US$150 million, Nortel Networks will be the sole infrastructure supplier for Pelephone’s CDMA2000 1X metropolitan network. Nortel Networks will begin immediately to integrate a turnkey solution with Pelephone’s existing second generation (2G) CDMA network to provide coverage initially in the high-density urban areas of Tel Aviv, Jerusalem and Haifa. This continues Nortel Networks momentum in the global market for wireless infrastructure. Nortel Networks has recently announced: selection by mm02 (subject to execution of definitive agreements) to supply 2.5G and 3G equipment and services across the UK, Isle of Man, Germany, Ireland and The Netherlands; an estimated US$250 million UMTS agreement with Telefonica for Germany and Spain; and an estimated US$500 million award from Cingular Wireless for GSM and GPRS equipment in the United States. "Pelephone has chosen Nortel Networks as they were able to offer a feature rich solution which will integrate seamlessly with our current technology," said Jacob Gelbard, president, Pelephone Communications Ltd. "We have great confidence in Nortel Networks industry-leading CDMA portfolio, coupled with its ability to deliver end-to-end IP, optical, and wireless solutions." "Through our CDMA evolution strategy, we are positioning wireless operators like Pelephone with cost-effective solutions to drive profitability and increase revenue potential," said Pascal Debon, president, Wireless Networks, Nortel Networks. "Our technology will help to strategically position Pelephone for the 3G wireless market in Israel." "We are starting a new and exciting relationship with Pelephone," said Sorin Lupu, managing director, Nortel Networks Israel. "We are leveraging our global wireless and technical experience and strong 20-year position in the Israeli market to help Pelephone deploy the first 3G network and to lead Israel into the next communications era." Nortel Networks solution for Pelephone will include: the core network and packet data capability; radio access equipment (approximately 660 base stations); and engineering, installation, commissioning and provisioning for the radio access portion of the network. With the promise of packet data services and higher data throughput speeds, CDMA provides a well-defined evolution path from the IS-95 (2G) standard to 3G via CDMA2000 1X and 1xEV. CDMA2000 1X is a next generation, ITU-approved, IMT-2000 (3G) standard technology. A leader in CDMA since 1995, Nortel Networks has designed, installed and commissioned more than 30,000 base stations – over varying terrain and population densities – for 40 operators in 13 countries. Nortel Networks CDMA technology maximizes existing spectrum and hardware resources to accommodate subscriber growth and reduce operational expenditures. Nortel Networks is also a leader in development, deployment and evolution of the other major air interfaces, including GSM, GPRS, EDGE, UMTS, TDMA and AMPS. 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 and the Globemark are trademarks of Nortel Networks. Contact for Press and Analysts:Claire Cranton
Nortel Networks
+44 (0) 1628 617178
cranton@nortel.com
Orit Ben-Harush
Nortel Networks
++972-8-914-3491
orit.ben-harush@nortel.com
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