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February 12, 2004
BaykalWestcom Deploys Multiservice Switching Capabilities from Nortel Networks
Eastern European Wireless Operator Plans to Deliver Voice, Data Over Packet Network
MOSCOW – BaykalWestcom, a major Eastern Siberian cellular operator, has deployed next generation multiservice switches from Nortel Networks* [NYSE/TSX: NT] to create a converged multiservice network connecting the cities of Irkutsk, Bratsk and Ust-Ilim in Eastern Europe.
Using Nortel Networks Passport* 7480 Multiservice Switches, the network is expected to maximize available bandwidth by providing improved voice traffic compression This additional bandwidth will enable BaykalWestcom to offer GPRS (General Packet Radio Service) and Internet data services. By integrating Passport 7480 into its existing wireless infrastructure from Nortel Networks, BaykalWestcom has created one platform capable of supporting multiple networking applications simultaneously while ensuring high quality of service to their customers. In addition to packet voice services, the range of ATM (asynchronous transfer mode) and IP (Internet Protocol) capabilities provided by Passport multiservice switches will allow for radio access networks (RAN) and core transport solutions for GSM (Global System for Mobile Communications), UMTS (Universal Mobile Telecommunications System), and CDMA (code division multiple access) and CDMA450 networks. “We chose Nortel Networks based on its proven abilities to deliver wireless data packet core technologies,” said Vladimir Shapovalov, general director, BaykalWestcom. “With Nortel Networks Passport multiservice switches in our network, we will be able to broaden our service offerings and optimize our networking costs.” “Passport’s proven multiservice flexibility is enabling BaykalWestcom to maximize its investment by evolving its networks without sacrificing quality of service or compromising customer loyalty,” said Christine Landrevot, managing director, Central and Eastern Europe, Nortel Networks. “This deployment demonstrates our presence and commitment to deliver high-value, cost-effective solutions to meet the challenging needs of operators in the Central and Eastern European region.” Nortel Networks Passport 7000 series offers high-density switches that give service providers a robust platform for network convergence without compromising quality of service. Passport 7000 provides a reliable and versatile solution to reduce network costs and complexity while supporting high-value, revenue-generating services. To date, more than 20 wireless operators globally have deployed Passport multiservice switches. Nortel Networks has provided BaykalWestcom with wireless infrastructure equipment and network engineering and consulting services since 1998. Nortel Networks is the sole supplier of GSM and GPRS network equipment and professional services for BaykalWestcom. Nortel Networks has deployed 80 GSM/GPRS networks in more than 50 countries. BaykalWestcom is the largest Eastern Siberian cellular operator providing NMT-450i and GSM 900/1800 services in Irkutsk Oblast. The GSM coverage extends to Irkutsk, Angarsk, Shelekhov, Usolie-Sibirskoye, Cheremkhovo, Zima, Sayansk, Bratsk, Vikhorevka, Ust-Ilimsk, Taishet, Baikalsk, Sludyanka, town of Listvyanka and Baikal route. With more than 150,000 subscribers, BaikalWestcom was among the top ten Russian cellular operators in terms of subscriber base as of September 2003 (according to Sotovik and J’son & Partners). 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 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; continued reductions in spending by our customers; fluctuations in operating results and general industry, economic and market conditions and growth rates; the communication by our auditors of the existence of material weaknesses in internal control; the ability to recruit and retain qualified employees; fluctuations in cash flow, the level of outstanding debt and our current debt ratings; the ability to meet the financial covenant in our credit facilities; the use of cash collateral to support our normal course business activities; the dependence on our subsidiaries for funding; the impact of our defined benefit plans and our deferred tax assets on our results of operations, cash flows and compliance with our financial covenant; the dependence on new product development and our ability to predict market demand for particular products; the ability to 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; barriers to 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; changes in regulation of the Internet; the impact of the credit risks of our customers and the impact of customer financing and commitments; stock market volatility generally and as a result of acceleration of the settlement date or early settlement of our purchase contracts; risks associated with a consolidation of our common shares; the impact of supply and outsourcing contracts that contain delivery and installation provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; the future success of our strategic alliances; and the adverse resolution of litigation, intellectual property disputes and similar matters. For additional information with respect to certain of these and other factors, see the most recent Form 10-Q and Form 10-K 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, Business Without Boundaries and Passport are trademarks of Nortel Networks. Contact for Press and Analysts:Carrie Kasten
Nortel Networks
+44 1628 43 5358
ckasten@nortel.com
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