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March 23, 2004
Nortel Networks Selected by Eurotel to Deliver Industry’s First CDMA 450 EV-DO Network
Broadband Network to Enable New Era of Mobile Data Services Across Czech Republic
PRAGUE, Czech Republic – Eurotel Praha spol. sr.o., the largest provider of wireless voice and data services in the Czech Republic, has selected Nortel Networks* [NYSE/TSX: NT] as the sole supplier of what is expected to be the industry’s first CDMA2000 1xEV-DO network operating in the 450 MHz radio spectrum.
The network, which is already being deployed across the Czech Republic, will help position Eurotel to introduce broadband Internet and other advanced services to wireless subscribers. Nortel Networks CDMA 450 architecture will also help position Eurotel to drive reduced capital and operating costs, and to maximize its existing investments in 450 MHz spectrum and legacy network equipment. Network deployment is expected to be complete in the second quarter of 2004, with commercial services for Internet browsing, e-mail and rich multimedia access planned for May 2004. Nortel Networks will also provide services including engineering, installation, maintenance and optimization. “Nortel Networks brought forward a very cost effective and time-efficient approach to expanding the Eurotel network,” said Terrence Valeski, chief executive officer and managing director, Eurotel Praha, spol. sr.o. “The new CDMA 1xEV-DO network will further reinforce our already strong market leader position in wireless Internet and enable us to offer a new era of data services that can help gain new customers, generate new revenues and enhance customer loyalty.” 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 for 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. “Leveraging our eight-year history in CDMA, we have developed an innovative CDMA 450 product that is unbeatable in terms of driving down capital and operating costs for operators,” said Steve Searles, vice president, marketing, CDMA/TDMA, Nortel Networks. “This gives Nortel Networks a unique advantage in helping wireless leaders like Eurotel deploy the most effective architecture for bringing next generation wireless data services to market.” Nortel Networks CDMA 450 solution, built on Nortel Networks Metro Cell base stations, is designed to be the most flexible available in the industry. It uses dedicated standalone radios, which provide a cost effective means of building on existing infrastructure investments to expand data services that can cover both rural and urban areas. Nortel Networks CDMA 450 native radio solution reduces site power requirements by as much as 25 percent and eliminates the need for frequency shifter hardware, which can significantly decrease deployment costs. Each radio can support three carriers, each of which can be 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 to reduce site acquisition costs. Wireless infrastructure equipment being used in the Eurotel network includes Nortel Networks CDMA Metro Cell radio base stations (BTS), Nortel Networks CDMA Base Station Controllers (BSCs) and Nortel Networks Packet Data Serving Node (PDSN) products. Nortel Networks recently unveiled its CDMA 450 portfolio and market strategy, and announced a contract with Telekom Baltija in Latvia. 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. Nortel Networks 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. Eurotel Praha, spol. sr.o. is the largest provider of wireless voice and data services in the Czech Republic. By the end of 2003, the company exceeded 4.2 million customers. Eurotel’s GSM (900/1800 MHz) and T!P (450 MHz) networks cover 99 percent of the Czech Republic’s more than 10 million residents. Eurotel is the owner of the UMTS license for the operation of the third generation of mobile services. In addition to regular postpaid tariff services, Eurotel offers prepaid cards under the Go brand and a full range of multimedia services and content including video, MMS, voice, WAP, and SMS. Eurotel is the only mobile operator in the Czech Republic to offer two cutting-edge GSM technologies for mobile (wireless) data transfer. General Packet Radio Service (GPRS) and High-Speed Circuit-Switched Data (HSCSD) are available to both postpaid and prepaid customers. Eurotel’s high quality services include SuperSound technology, which ensures clean voice connections, and 336 roaming partners in 138 countries worldwide. Eurotel has been awarded the ISO 9001:2000 certificate based on international standards of quality. Independent auditors have confirmed that Eurotel has built an operational system that guarantees quality, stability, and consistent service. Eurotel Praha, spol. sr.o. is a limited liability company owned by Český Telecom, a.s. (100%). 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:Jay Barta
Nortel Networks
+44 1628 43 8378
jbarta@nortel.com
Sabine Werb
Nortel Networks
+49 69 6697 1906
sabine.werb@nortel.com
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