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September 15, 2003
Nortel Networks Solutions Supporting China Unicom Expansion
Deployment of CDMA 2000 1X Networks Underway in Four Markets
BEIJING – Nortel Networks* [NYSE/TSX: NT] announced that China Unicom is deploying CDMA2000 1X networks based on Nortel Networks solutions in four leading markets in China. The deployments, which began in April 2003 and are expected to be fully completed by the end of 2003, will enable more comprehensive coverage and richer applications in Chongqing Municipality and in Zhejiang, Shandong and Heilongjiang provinces.
These deployments are part of Phase 3 of China Unicom’s expansion of its nationwide CDMA2000 1X network. Over the past two years, Nortel Networks has supplied solutions to China Unicom for Phase 1 and Phase 2 of the expansion. Overall, the contracts underlying these deployments are estimated to be worth approximately US$139 million. These expansions will ultimately provide China Unicom with increased CDMA2000 1X network capacity for close to six million subscribers in the four markets, paving the way for end users to enjoy applications including video gaming, Web surfing, Multimedia Messaging Service, and other high-speed wireless data services. According to information from the National Bureau of Statistics of China, the four markets combined accounted for 20 percent of China’s total Gross Domestic Product (GDP) in 2002. The expansion will also help China Unicom to drive improved spectrum efficiency and reduced costs, and will position the carrier to migrate to an all IP (Internet Protocol) packetized network. “China is the world’s largest mobile phone market with over 200 million subscribers, and the market keeps growing in both sheer numbers and demand for more sophisticated applications,” said Robert Mao, president and chief executive officer, Greater China, Nortel Networks. “We have a strong, long-standing working relationship with China Unicom and are pleased to grow their networks with them from both the subscription and service sophistication aspects.” The deployments for Phase 3 include Base Station Controllers (BSC), Mobile Switching Centers (MSC), ‘Boomer’ Cells and other Base Transceiver Stations (BTS). Nortel Networks is the only supplier with Wireless Data Networks operating in all three advanced technologies – GPRS, CDMA2000 and UMTS. A CDMA leader since 1995, Nortel Networks has designed, installed and launched networks – including more than 35,000 ‘3G-ready’ base stations as of August 31, 2003 – for more than 65 CDMA customers in 17 countries. Nortel Networks is implementing CDMA2000 1X networks for leading customers around the world, including: Verizon Wireless and Sprint PCS in the United States; Bell Mobility and TELUS Mobility in Canada; Telstra in Australia; and SMARTCOM PCS in Chile. 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 impact of our asset and liability review; 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:Michelle Wu
Nortel Networks
8610 65107132
wumich@nortel.com
Neil Jiang
Nortel Networks
8610 65107140
neiljj@nortel.com
Jamie Moody
Nortel Networks
(972) 684-7167
moodyjam@nortel.com
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