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August 19, 2002
Dobson Communications Chooses Nortel Networks for GSM/GPRS Network
Upgrade Expected to Facilitate Faster Wireless Data Services, Increase Voice Capacity
DALLAS – Dobson Communications, a leading provider of wireless telephone services to rural markets in the United States, has selected Nortel Networks* [NYSE/TSX: NT] as its primary core network and radio access provider for the planned upgrade of its digital wireless network to provide faster wireless data services and increased voice capacity.
The next step in its anticipated evolution to third generation (3G) technology, this upgrade will position Dobson to provide subscribers with next generation wireless data capabilities, such as Internet browsing, e-mail, Virtual Private Networking (VPN), multimedia messaging, personal messaging, and other advanced services. As part of today’s announced agreement, Dobson will begin to overlay its existing TDMA (time division multiple access) network and the network of its 50-percent-owned joint venture, American Cellular Corporation, with 850 MHz or 1900 MHz GSM (Global System for Mobile Communications), GPRS (General Packet Radio Service), and EDGE (Enhanced Data GSM Evolution) equipment provided primarily by Nortel Networks, including approximately 80 percent of the base stations and all required switching and intelligent network equipment. The estimated US$90 million upgrade is part of a three-year, estimated US$150 million supply agreement that Dobson signed with Nortel Networks in November 2001. The 2002 capital expenditure in this commitment and total amount to be spent are consistent with Dobson’s past guidance on the upgrade of its networks. The overall estimated value of the supply agreement to Nortel Networks remains the same. "A cornerstone of Dobson’s growth strategy is to provide our customers in the rural United States with the most advanced wireless services available, and this technology upgrade supports that commitment,” said Tim Duffy, senior vice president and chief technical officer, Dobson Communications. "This will also enable Dobson to maintain seamless technology compatibility with our two largest TDMA roaming partners, AT&T Wireless [NYSE: AWE] and Cingular Wireless, as they upgrade their networks with GSM/GPRS/EDGE technologies," Duffy said. When the overlay is complete, Dobson subscribers and roaming customers will have access throughout Dobson’s markets to TDMA, GSM, GPRS and EDGE technologies. "Nortel Networks strategy is to help carriers maximize their existing spectrum and hardware resources to support subscriber growth and new data services,” said Peter MacKinnon, senior vice president, Wireless Networks, Nortel Networks. "Today’s announcement demonstrates our expertise and experience in providing TDMA operators with a smooth migration path to GSM/GPRS,” MacKinnon said. “Dobson is a valued customer, and we are committed to helping them evolve their network more cost effectively so that they can provide advanced data services to end users." Nortel Networks has been providing wireless infrastructure technology to Dobson since 1995. In May 2002, Dobson began testing Nortel Networks GSM/GPRS migration solutions at 1900 MHz with feature and handset tests in Preston, Okla. Nortel Networks GSM/GPRS infrastructure equipment not only will help position Dobson to increase transmission speed, network security, and overall network performance, but will also provide Dobson with an evolution path to 3G wireless technologies such as UMTS (Universal Mobile Telecommunications Service). Nortel Networks has deployed 80 GSM/GPRS networks in 41 countries. Nortel Networks is supplying GSM/GPRS systems to enable Wireless Data Network services for more than 30 operators, including T-Mobile, mm02 and Orange in Europe, AT&T Wireless, Cingular Wireless and VoiceStream Wireless in the United States, Sunday in Hong Kong, China Mobile, and Telstra in Australia. Dobson Communications is a leading provider of wireless phone services to rural markets in the United States. Headquartered in Oklahoma City, the Company owns or manages wireless operations in 17 states. For additional information on the Company and its operations, please visit its Web site at www.dobson.net.** 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 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 meet financial covenants contained in our credit agreements; 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. **This is a 3rd party link as described in our Web linking practices. Contact for Press and Analysts:Jamie Moody
Nortel Networks
972-684-7167
moodyjam@nortel.com
David Chamberlin
Nortel Networks
972-685-4648
ddchamb@nortel.com
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