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October 13, 2004
O2 Expands Nortel Networks Role in Pan-European UMTS Network Buildout
LONDON – O2 has expanded Nortel Networks* [NYSE/TSX: NT] role as an infrastructure supplier of third generation (3G) Universal Mobile Telecommunications System (UMTS) wireless infrastructure for O2’s networks across the UK, Germany and Ireland. Nortel Networks will also provide some network engineering and radio optimisation services.
Under an extension to an existing supply agreement with Nortel Networks, O2 will deploy UMTS radio equipment in Eastern and Southern Germany (including Berlin) and across most regions of the British Isles. Nortel Networks was previously selected by O2 to provide GPRS and UMTS networks. Infrastructure deployments will expand network coverage into new regions in the UK and Germany, and position O2 to drive new revenue opportunities by offering advanced data services like mobile e-mail, video calling, mobile Internet browsing, and Multi Media Services (MMS) including streaming video and localised, personalised content. “Nortel Networks has demonstrated 3G leadership and commitment in its current deployments and this was a major factor in our decision to award these new footprints,” said Dave Williams, Group Chief Technology Officer, mmO2. “Nortel Networks will provide the necessary reliability and scalability to deliver an outstanding 3G network and will allow us to use these 3G capabilities to launch world-class services to our customers across the UK, Ireland and Germany.” “We continue to see progress in the rollout of UMTS and this is another step in our continued strategy in enabling a new era of broadband mobile service,” said Peter MacKinnon, president, GSM/UMTS, Nortel Networks. “We are delighted with O2’s decision to expand the scope of our contribution to their European network. Nortel Networks extensive experience in deploying large-scale wideband wireless networks gives us a big advantage in turning up UMTS in a rapid, cost-effective manner.” The contract extension expands the scope of an existing supply agreement signed by Nortel Networks and O2 on October 31, 2002. Following O2’s audit of suppliers, Nortel Networks was selected as one of two infrastructure suppliers in April 2002. At that time, O2 stated that additional deployments would be awarded based on performance at a later date. This latest contract is with mmO2 Limited and O2 Operating Companies (O2 UK, O2 Ireland and O2 Germany). O2 Limited is a subsidiary of mmO2. Nortel Networks will supply O2 with products from its Base Transceiver Station (BTS), Mobile Switching Center (MSC), Radio Network Controller (RNC), and Data Server Node (GGSN, SGSN) technology portfolios. Nortel Networks wireless equipment is designed to easily migrate with cost-effective, modular upgrades to support higher bandwidth 3G technologies. This can eliminate the costly need to replace hardware and streamline deployment to speed time-to-market for services. This latest selection by O2 continues Nortel Networks momentum in deploying 3G wireless networks. Nortel Networks was recently selected to deploy new UMTS coverage areas for Orange, Vodafone and Hutchinson operator Partner in Israel. AT&T Wireless has launched the first commercial UMTS networks in North America using Nortel Networks equipment. Nortel Networks has designed, installed and launched more than 300 wireless networks in over 50 countries across the globe. Nortel Networks was the industry’s first supplier with wireless networks operating in all advanced radio technologies (GSM/GPRS/EDGE, CDMA2000 1X and 1xEV-DO, UMTS and WLAN) and is the only end-to-end provider of all next generation wireless solutions. As a global innovation leader, Nortel Networks enriches consumer and business communications worldwide by offering converged multimedia networks that eliminate the boundaries among voice, data and video. These networks use innovative packet, wireless, voice and optical technologies and are underpinned by high standards of security and reliability. For both carriers and enterprises, these networks help to drive increased profitability and productivity by reducing costs and enabling new business and consumer services opportunities. Nortel Networks does business in more than 150 countries. For more information, visit Nortel Networks on the Web at www.nortelnetworks.com or www.nortelnetworks.com/media_center 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 Nortel Networks independent review and planned restatement or revisions of its previously announced or filed financial results; the impact of the management changes announced on April 28, 2004 and August 19, 2004; the impact of the inability to meet Nortel Networks filing obligations on support facilities and public debt obligations; the sufficiency of Nortel Networks restructuring activities, including the work plan announced on August 19, 2004 as updated on September 30, 2004, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions; cautious or reduced spending by Nortel Networks customers; fluctuations in Nortel Networks operating results and general industry, economic and market conditions and growth rates; the communication by Nortel Networks auditors of the existence of material weaknesses in internal controls; Nortel Networks ability to recruit and retain qualified employees; fluctuations in Nortel Networks cash flow, level of outstanding debt and current debt ratings; the use of cash collateral to support Nortel Networks normal course business activities; the dependence on Nortel Networks subsidiaries for funding; the impact of Nortel Networks defined benefit plans and deferred tax assets on results of operations and Nortel Networks cash flows; Nortel Networks dependence on new product development and its ability to predict market demand for particular products; Nortel Networks 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 Nortel Networks 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 Nortel Networks purchase contracts; the impact of Nortel Networks 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 Nortel Networks strategic alliances; and the adverse resolution of litigation, investigations, 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:Claire Cranton
Nortel Networks
+44 1628 617 178
cranton@nortelnetworks.com
Jay Barta
Nortel Networks
(972) 685-2381
jbarta@nortelnetworks.com
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