Nortel Targets Wireless Market with Advancements in Multiservice Switc

Nortel Targets Wireless Market with Advancements in Multiservice Switching; Boosts Performance, Density, Cuts Costs for Wireless Customers

    Business Editors/Technology Writers
    3GSM World Congress 2005

    CANNES, France--(BUSINESS WIRE)--Feb. 15, 2005--Nortel (NYSE:NT)(TSX:NT) has introduced enhancements to its market-leading Multiservice Switch (MSS) portfolio designed to reduce costs and improve network performance for wireless operators and customers in high growth markets like government and enterprise.
    Nortel's multiservice switching solution addresses one of the single highest ongoing operational expenses wireless operators face when transitioning to third generation (3G) networks. It converges and compresses voice and data traffic from wireless base stations and transports it back to a central switching point, resulting in typical savings of 20 to 40 percent on T1/E1 leased line costs based on Nortel research and actual customer deployments.
    "As 3G services gain in popularity, demand for data backhaul will grow dramatically as more and more data must be carried from the cell sites back into the network," said Peter MacKinnon, president, GSM/UMTS, Nortel. "Backhaul cost reduction is a critical issue for wireless operators as they move into the 3G era."
    "This switching solution is another great example of the synergies Nortel offers across its packet core and wireless networking solutions," MacKinnon said. "Nortel has been the market leader for years in multiservice switching. Now we are taking that expertise from our wireline products and applying the benefits for wireless customers."
    Nortel has been the global market share leader in multiservice switching revenue for 15 consecutive quarters as of year-end 2004, according to Synergy Research Group. Nortel recently announced a new network contract with Belgian wireless operator Mobistar, including multiservice switching equipment to reduce backhaul costs from its radio sites. Other wireless operators including Vodafone, T-Mobile, Cingular, Western Wireless and Telstra have also deployed products from Nortel's Multiservice Switching portfolio.
    "The latest enhancements to our MSS portfolio are designed to help our customers address pressing requirements for mission-critical networks," said Scott McFeely, general manager, services edge, Nortel. "With these enhancements, we can better serve the growing wireless transmission market as well as government organizations and large enterprises."
    Enhancements are now generally available on Nortel's Multiservice Switch 7400 (MSS) series, and include a new MSS 7460 product. The MSS 7460 supports the same services and interfaces as the 16-slot MSS 7480, but in a space saving, eight-slot chassis that is more cost-effective and attractive for space-constrained deployments for wireless and wireline operators.
    Nortel has also introduced a new set of high-density interface cards that effectively double the port capacity of the entire MSS 7400 series, allowing existing customers to further leverage their existing investment while enabling new customers to more economically address network requirements. These new interface cards contain features like remote configuration and 'any-service-any-port' functionality that further reduce capital and operational costs.
    New interface cards and hardware upgrades introduced for Nortel's Multiservice Switch portfolio include:

--	An improved 'any-service-any-port' interface card for the MSS 7400 series. The new Multiservice Access (MSA) module boasts 32 ports on a single slot card, double the port density of the previous version. Nortel's MSA card enables the service provider to remotely configure ATM/CES, Frame Relay, or IP/IP VPN services on the MSS 7400 series on a port-by-port basis, greatly reducing operational costs.
--	New 10/100 Ethernet cards for the MSS 7400 series that provide improved port densities and higher performance. The new Ethernet cards also enable service providers to offer virtual private LAN (local area network) services (VPLS) using existing switching infrastructure.
--	Enhancements to the MSS 15000 that enable improved packet processing capabilities that reflect today's mix of IP and ATM traffic on switched networks. With the emergence of IP VPNs, today's switches require additional processing power to address sometimes heavy IP traffic conditions. The new hardware enhancements are targeted for optical connectivity up to OC-48.

    With more than 45,000 systems shipped to over 1,500 customer networks, Nortel's Multiservice Switching family has proven field experience in delivering carrier-grade reliability and service flexibility for mission-critical enterprise and service provider networks worldwide. Nortel's MSS portfolio is deployed with more than 25 major wireless operators and is delivering proven reliability for wireless packet networking solutions across GSM/GPRS/UMTS, TDMA and CDMA/CDMA2000 technologies.

    About Nortel

    Nortel is a recognized leader in delivering communications capabilities that enhance the human experience, ignite and power global commerce, and secure and protect the world's most critical information. Serving both service provider and enterprise customers, Nortel delivers innovative technology solutions encompassing end-to-end broadband, Voice over IP, multimedia services and applications, and wireless broadband designed to help people solve the world's greatest challenges. Nortel does business in more than 150 countries. For more information, visit Nortel on the Web at www.nortel.com. For the latest Nortel news, visit www.nortel.com/news.

    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 regulatory and criminal investigations and civil litigation actions related to Nortel's restatements and the impact any resulting legal judgments, settlements, penalties and expenses could have on Nortel's results of operations, financial condition and liquidity; the findings of Nortel's independent review and implementation of recommended remedial measures; the outcome of the independent review with respect to revenues for specific identified transactions, which review will have a particular emphasis on the underlying conduct that led to the initial recognition of these revenues; the restatement or revisions of Nortel's previously announced or filed financial results and resulting negative publicity; the existence of material weaknesses in Nortel's internal controls over financial reporting; the impact of Nortel's and NNL's failure to timely file their financial statements and related periodic reports, including breach of its support facility and public debt obligations and Nortel's inability to access its shelf registration statement filed with the United States Securities and Exchange Commission ("SEC"); ongoing SEC reviews, which may result in changes to our public filings; the potential delisting or suspension of Nortel's and NNL's publicly traded securities; the impact of management changes, including the termination for cause of Nortel's former CEO, CFO and Controller in August 2004; the sufficiency of Nortel's 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's customers; fluctuations in Nortel's operating results and general industry, economic and market conditions and growth rates; fluctuations in Nortel's cash flow, level of outstanding debt and current debt ratings; Nortel's ability to recruit and retain qualified employees; the use of cash collateral to support Nortel's normal course business activities; the dependence on Nortel's subsidiaries for funding; the impact of Nortel's defined benefit plans and deferred tax assets on results of operations and Nortel's cash flow; the adverse resolution of class actions, litigation in the ordinary course of business, intellectual property disputes and similar matters; Nortel's dependence on new product development and its ability to predict market demand for particular products; Nortel's 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's 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, which is currently not available, of Nortel's forward purchase contracts; the impact of Nortel's 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; and the future success of Nortel's strategic alliances.
    For additional information with respect to certain of these and other factors, see the most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed by Nortel with the SEC. Unless otherwise required by applicable securities laws, Nortel 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, the Nortel logo and the Globemark are trademarks of Nortel Networks.

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CONTACT: Nortel Ben Roome, +44 1628 43 3113 benroome@nortel.com or Bo Gowan, 972-685-8278 bogowan@nortel.com or Jay Barta, 972-685-2381 jbarta@nortel.com

KEYWORD: TEXAS FRANCE INTERNATIONAL EUROPE TRACK INDUSTRY KEYWORD: TELECOMMUNICATIONS NETWORKING INTERNET E-COMMERCE HARDWARE TRADESHOW PRODUCT SOURCE: Nortel

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