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March 7, 2001

Cable & Wireless to Deploy Caribbean’s First ‘Converged’ Packet Network Backbone

Using Next Generation, Multiservice Solution from Nortel Networks Succession Portfolio

GRAND CAYMAN, Cayman Islands – Cable & Wireless Caribbean and Atlantic Islands has signed a two-year contract estimated to be worth US$12.5 million with Nortel Networks* [NYSE/TSE: NT] to upgrade its eastern Caribbean network to a single, packet backbone for ‘converged’ voice, data and Internet traffic – a first for the Caribbean.

With this next generation, multiservice infrastructure, Cable & Wireless intends to carry local and international voice, data and Internet traffic using Internet Protocol (IP) and ATM (asynchronous transfer mode) technologies. This is expected to enable faster service deployment, and support fully integrated multimedia services to the desktop, office or home.

Nortel Networks will design and implement this backbone network for Cable & Wireless using Nortel Networks Succession* portfolio. Plans call for migration of data and Internet traffic onto the new network in the first year, and voice traffic in the second year.

"Besides honoring our commitment to offer our Caribbean customers the most advanced telecommunications services, this is another step on our way to become the leading provider of IP and data services in the world," said Dave Morgan, executive vice president, Cable & Wireless Caribbean and Atlantic Islands.

"We chose Nortel Networks for the evolution of our network because of their ability to supply Cable & Wireless with a complete, next generation solution that will be easy to manage and will allow us to efficiently roll out new services for our customers," Morgan said.

"Nortel Networks Succession helps operators all over the world transition to a more efficient and cost-effective network infrastructure, bringing together traditional telephony and the high-performance Internet,” said Scott Burwell, vice president, Caribbean region, Nortel Networks. “With this upgrade, Cable & Wireless customers throughout the Caribbean will have access to a whole new realm of communication features."

Cable & Wireless new Caribbean network will include Nortel Networks Succession Communication Server 2000, and will span the islands of Anguilla, Antigua, Barbados, BVI, Dominica, Grenada, St. Kitts and Nevis, St. Lucia, and St. Vincent.

Nortel Networks Succession includes next generation, multiservice network solutions for established carriers and emerging service providers that enable delivery of mission-critical voice, data and multimedia services over a single, converged, packet-based network. The Nortel Networks solution for Cable & Wireless will also include Nortel Networks Passport* 15000 multiservice switches, including the Passport voice gateway application, and Nortel Networks Preside* network and services management.

Cable & Wireless is one of the world's leading providers of integrated communications and a major global carrier of communications traffic: Internet, data, voice and video. Its businesses around the world offer a range of services spanning interactive entertainment and information, broadband data, Internet access and broadcast television, as well as fixed and mobile voice. With customers in 70 countries, Cable & Wireless is one of the world's largest carriers of international traffic and provides mobile communications in more than 30 countries.

Nortel Networks is a global Internet and communications leader with capabilities spanning Optical, Wireless, Local, Personal Internet and eBusiness. The Company had 2000 U.S. GAAP revenues of US$30.3 billion and serves carrier, service provider and enterprise customers globally. Today, Nortel Networks is creating a high-performance Internet that is more reliable and faster than ever before. It is redefining the economics and quality of networking and the Internet, promising a new era of collaboration, communications and commerce. Visit us at

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 impact of price and product competition; the dependence on new product development; the impact of rapid technological and market change; the ability of Nortel Networks to make acquisitions and/or integrate the operations and technologies of acquired businesses in an effective manner; general industry and market conditions and growth rates; international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; the impact of consolidations in the telecommunications industry, the uncertainties of the Internet; stock market volatility; the ability of Nortel Networks to recruit and retain qualified employees; the ability to obtain timely, adequate and reasonably priced component parts from suppliers and internal manufacturing capacity; and the impact of increased provision of customer financing by Nortel Networks. 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. 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.

Contact for Press and Analysts:

Ferngene Kook
Nortel Networks

Isabelle Tadmoury
Nortel Networks
44 207 529 3063

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