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July 30, 2003
Western Wireless Corporation Selects Nortel Networks for CDMA, GSM Roaming and Wireless Data Network
DALLAS – Western Wireless Corporation (NASDAQ: WWCA), a leading provider of wireless communications services to rural America, has awarded Nortel Networks* [NYSE/TSX: NT] a contract estimated to be valued up to $US 90 million to deploy wireless data network equipment to expand coverage across the Western region of the United States.
Nortel Networks will deploy CDMA2000 core and radio access networking equipment to position Western Wireless to increase network capacity, support its growing subscriber base and extend wireless coverage areas across the western United States. Nortel Networks will be the sole supplier of new CDMA equipment for certain of Western Wireless’ markets in Kansas, Nebraska, Missouri, Iowa, Arizona, Arkansas, Nevada, California, and Texas. As announced on May 1, 2003, Nortel Networks has also been selected as the sole supplier of Western Wireless’ GSM (Global System for Mobile Communications) and GPRS/EDGE (General Packet Radio Service/Enhanced Data rates for GSM Evolution) roaming network. The GSM deployments will allow Western Wireless to provide roaming services to Cingular Wireless, T-Mobile USA, AT&T Wireless and other GSM operators. Additionally, Nortel Networks will provide installation and integration services for the CDMA and GSM infrastructure as well as Assisted Operation services for the GSM network. Dual-band GSM core and radio access equipment provided by Nortel Networks will support both the 850 MHz and 1900 MHz radio spectrums to provide seamless voice and data services for subscribers across all of these operator networks. “We are very pleased to expand on our 12-year relationship with Nortel Networks,” said Eric Hertz, chief operating officer, Western Wireless. “Nortel Networks continues to help us meet the changing needs and dynamics of our wireless business, and to build on the high quality wireless services we offer to our subscribers and roaming partners across the nation.” Nortel Networks is an industry leader in migrating TDMA wireless networks to support more efficient and higher-capacity CDMA and GSM technologies. Nortel Networks infrastructure is designed to increase network capacity while reducing the costs of transporting traffic. The infrastructure also supports advanced data services like Web browsing, multimedia messaging (MMS), location-based services, m-commerce, and other high-speed wireless data services. “Our Wireless Data Network expertise across multiple access technologies and packet core networking gives Nortel Networks a unique advantage in modernizing today’s wireless networks,” said Peter MacKinnon, senior vice president, Wireless Service Providers. “We believe this contract with Western Wireless is an excellent example of the cost savings, networking efficiencies and advanced data service capabilities we can deliver using a converged core architecture.” This contract builds on a long-standing relationship between Nortel Networks and Western Wireless. The companies have deployed analog, TDMA IS-136 digital wireless and CDMA networks across the Western United States for more than 12 years. Nortel Networks and Western Wireless struck an industry first by successfully trialing rural fixed wireless access using CDMA2000 technology in Terry, Montana, in July 2001. Nortel Networks launched the first commercial CDMA2000 network for Western Wireless in Texas in March 2002. Dual-band GSM and GPRS (EDGE-ready) infrastructure to be deployed include S8000 and S12000 Base Station Transceiver (BTS), and Mobile Switching Center (MSC) equipment. CDMA upgrades will include Base Station Transceiver (BTS), Base Station Controller (BSC) and associated IP switching equipment. Nortel Networks GSM and CDMA infrastructure is designed to easily support migration to next-generation technologies (GPRS/EDGE, CDMA2000 1X, 1xEV-DO, 1xEV-DV) with simple card and software upgrades, which can minimize capital expenses and protect network investments. About Western Wireless Western Wireless Corporation, located in Bellevue, Washington, was formed in 1994 through the merger two rural wireless companies. Following the merger, Western Wireless continued to invest in rural cellular licenses, acquired six PCS licenses in the original auction of PCS spectrum in 1995 through its VoiceStream subsidiary, and made its first international investment in 1996. Western Wireless went public later in 1996 and completed the spin-off of VoiceStream in 1999. Western Wireless now serves over 1.2 million subscribers in 19 western states under the Cellular One® and Western Wireless® brand names. Through its subsidiaries and operating joint ventures, Western Wireless is licensed to offer service in nine foreign countries. About Nortel Networks 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, and the Globemark are trademarks of Nortel Networks. Contact for Press and Analysts:Jay Barta
Nortel Networks
(972) 685-2381
jbarta@nortel.com
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