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March 15, 2004
Nortel Networks Unveils CDMA 450 Portfolio, Deployment Strategy
Commercial Deployments Underway to Enable Next Generation Service on 450 MHz
DALLAS – Nortel Networks* [NYSE/TSX: NT] has unveiled its line of CDMA products that it has developed and tested for the CDMA 450 MHz radio spectrum, and has begun commercial deployments in Europe.
Nortel Networks CDMA 450 product portfolio is designed to help customers reduce network capital expenditures and operating costs while maximize existing network investments. The CDMA 450 products, built on Nortel Networks Metro Cell base station solution, are designed to be the most flexible available in the industry today. CDMA 450 is a standard for use in countries transitioning to digital wireless service from Nordic Mobile Telephone (NMT) 450 analogue service and in countries advocating universal access to voice and data. Because of the lower radio spectrum, CDMA 450 has the advantage of covering a significantly larger geographical footprint compared to traditional cellular systems. This means fewer cell sites, lower capital expenditures and no need for licensed operators to acquire additional spectrum. “We have been testing and deploying CDMA 450 over the past year and, based on the successes of these networks, we have brought to market what we believe is the most robust, cost-efficient solution available to operators today,” said Steve Searles, vice president, marketing, CDMA/TDMA, Nortel Networks. “CDMA 450 is gathering momentum and attention across Eastern Europe, Asia and Latin America because it is relatively inexpensive to deploy and is ideal for covering vast regions and less densely populated areas.” Leveraging its experience in deploying large CDMA-based networks globally and its existing product portfolio, Nortel Networks has designed its CDMA 450 products as dedicated, standalone radios. This provides operators with a cost-effective means of building on existing NMT450 infrastructure to expand and digitize voice and data services in both rural and urban environments. Nortel Networks native radio solution reduces site power requirements by as much at 25 percent and eliminates the need for frequency shifter hardware, which can significantly decrease site deployments costs. Each radio can support three carriers, which can be easily activated individually via software. CDMA2000 1X and CDMA 1xEV-DO are also integrated in the same base station to enable operators to customize their mix of coverage and costs, and reduce site acquisition costs. Nortel Networks also announced today a CDMA2000 450 MHz contract with Telekom Baltija in Latvia. In addition, Nortel Networks is conducting CDMA 450 trials with a number of operators across Eastern Europe, and has just completed a CDMA 450 trial with UralWestcom, a joint venture between Russian Telecommunications Development Corporation (RTDC) and Ural Svyaz Inform. A leader in CDMA since 1995, Nortel Networks has designed and deployed CDMA networks over varying terrain and population densities for more than 65 operators across 17 countries. Nortel Networks CDMA technology supports multiple frequencies including 450, 800, 1900 and 2100 MHz, and is the only vendor capable of supporting multiple frequencies in one base station frame simultaneously. Nortel Networks is a leader in development, deployment and evolution of all major air interfaces including GSM, GPRS, EDGE, UMTS, TDMA, AMPS and WLAN. 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 outcome of our independent review and any further restatement of our previously announced or filed financial results; the impact of the inability to meet our filing obligations on our credit and support facilities and public debt obligations; 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/A and Form 10-K/A 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 Business Without Boundaries are trademarks of Nortel Networks. Contact for Press and Analysts:Jennifer Usrey
Nortel Networks
(972) 684-4844
jusrey@nortel.com
Jay Barta
Nortel Networks
+33 1 69 55 51 11
jbarta@nortel.com
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