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July 7, 2003
Taiwan Fixed Network Deploys Nortel Networks Passport Multiservice Switches
Island-Wide Data Network to Support UMTS Third Generation Wireless Data
TAIPEI, Taiwan – Taiwan Fixed Network (TFN), a leading fixed-line operator in Taiwan, has deployed Passport* 7000 Multiservice Switches from Nortel Networks* [NYSE/TSX: NT] for an island-wide data network that supports ATM (asynchronous transfer mode) and IP (Internet Protocol) traffic for TFN's affiliate company, Taiwan Cellular Corporation (TCC).
The new Passport-based data network is an integral part of TCC's Universal Mobile Telecommunication System (UMTS) third generation (3G) wireless Radio Access Network (RAN). It has positioned TFN to support the increasing volume of data traffic being generated by TCC mobile users. The network features the first UMTS RAN aggregation application in Asia for Nortel Networks. "Passport switches are an integral part of our Wireless Data Networks portfolio," said Jackson Wu, managing director, Taiwan, Nortel Networks. "Successful deployment of Passport 7000 in a UMTS radio access network further strengthens Nortel Networks leadership position in building high-performance multiservice networks that span both wireless and wireline networks. Passport's proven ATM traffic management and QoS features support wireless IP and TDM voice services today, while positioning TFN for a seamless upgrade to MPLS in the future." Nortel Networks Passport 7000 Multiservice Switches has positioned TFN to aggregate TCC's UMTS RAN hub traffic cost-effectively into TFN's packet core. TFN is using the proven, reliable ATM services of Passport 7000 for traffic aggregation and statistical multiplexing. This will help TFN to drive reduced transport costs by extending packet networking efficiency to the RAN. In addition, Passport's ability to support multiple services on the same hardware also offers TFN tremendous flexibility and investment protection in RAN applications. The complete Passport portfolio – including Passport 7000, 15000 and 20000 Multiservice Switches – delivers industry-leading packet networking benefits to current and emerging next generation wireless networks, including those based on TDMA, GSM, GPRS, UMTS, CDMA and CDMA2000 radio technologies. The recent addition of Passport 7420 - joining a family that includes Passport 7440 and 7480 – provides yet another option for wireless operators seeking a high concentration of features in a smaller footprint that is ideal for UMTS RAN applications. Nortel Networks was the global market share leader in multiservice switching for eight consecutive quarters as of the end of first quarter 2003, according to Synergy Research Group. Established in 2000, Taiwan Fixed Network www.tfn.net.tw** is one of the three fixed-line telecom providers in Taiwan. Taiwan Cellular Corporation www.tcc.net.tw** is one of the Taiwan service providers recently awarded a UMTS 3G license. Both companies are part of the Taiwan Telecom Group. 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 Wireless Networks, Wireline Networks, Enterprise 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 customer financing and commitments; stock market volatility; the entrance into an increased number of supply and outsourcing contracts which contain delivery and installation 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 and Passport are trademarks of Nortel Networks. **This is a 3rd party link as described in our Web linking practices. Contact for Press and Analysts:Jane Lu
Nortel Networks
+886 2366-7815
janelu@nortel.com
Ben Roome
Nortel Networks
+44 1628 43 3113
benroome@nortel.com
Christie Blake
Nortel Networks
(978) 288-8439
christbl@nortel.com
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