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Nortel

June 05, 2007 04:30 ET

Baikalwestcom, Nortel Team up to Extend Wireless Coverage Across Eastern Siberia

New Network Extension Project Gives Baikalwestcom Capacity for New Services and Increases Network Reach

MOSCOW, RUSSIA and IRKUTSK, RUSSIA--(Marketwire - June 5, 2007) - Nortel(1) (TSX:NT)(NYSE:NT) and Baikalwestcom announced a new contract for a wireless network extension in 2007 that will enable Baikalwestcom to increase its network capacity and expand its mobile services coverage to new areas of Siberia. This contract announcement marks another milestone in a continuing three-year cooperation between Nortel and Baikalwestcom - Eastern Siberia's leading service provider.

Under the terms of the new contract for GSM wireless equipment, Baikalwestcom will increase its core network capacity to better support subscribers in the densely populated metropolitan areas of Irkutsk, Bratsk and Angarsk and extend and improve its wireless network to deliver services across a wider area of Eastern Siberia. Baikalwestcom also intends to extend GPRS data services such as the delivery of Internet access into more rural areas across the Irkutsk region.

The Baikalwestcom coverage area will also be expanded to provide updated communication services in the large East Siberian region with more than 50 rural towns and villages and the company also intends to deliver uninterrupted coverage along all the major highways within the Irkutsk region.

During 2006, Nortel and Baikalwestcom worked together to put into commercial operation the first stage of the Baikalwestcom network extension project, which consisted of a core systems upgrade and the deployment of more than 400 Nortel base stations and GPRS-subsystems, as well as launch of EDGE technology within the Baikalwestcom coverage area. This enabled Baikalwestcom to increase the volume of its commercial services, including SMS and mobile Internet services such as music and video downloads and multimedia services.

"Significantly increasing our subscriber base, launching new services, and considerably increasing the GPRS and Internet services area of our service portfolio are the primary aims for our continuing cooperation with Nortel for 2007," said Vladimir Shapovalov, CEO, Baikalwestcom JSC. "And, we need to do all this in addition to enhancing the quality and reliability of all our communications."

"Nortel helps operators all over the world realize their most ambitious and challenging communications projects. Our new project with Baikalwestcom is aimed at increasing network capacity and reach and adding subscribers and as a long-term target - making the network "broadband-ready" so that Baikalwestcom can deliver low-cost broadband services. This is improving service today and creating a path to the future, which is very important for Baikalwestcom," said Sorin Lupu, president Eastern Europe, Nortel.

Baikalwestcom is deploying over 350 Nortel GSM base stations (BTS18000) across Siberia. The company will also use Nortel software upgrades to increase the capacity of its existing three DMS switches, located in Irkutsk, Bratsk, and Angarsk.

Nortel has designed, installed and launched more than 300 wireless networks in over 70 countries. Nortel was the industry's first supplier with wireless networks operating in all advanced radio technologies (GSM/GPRS/EDGE, CDMA2000 1x and 1xEV-DO, and WLAN) and is the only end-to-end provider of all next generation wireless solutions.

About JSC Baikalwestcom

JSC "Baikalwestcom" is the leading mobile service provider for East Siberia, Irkutsk region. "Baikalwestcom" provides its subscribers with CDMA 2000 1x and GSM-900/1800 mobile communications services. JCS "Baikalwestcom" is wholly owned by the largest telecommunications provider in Siberia, JSC "Sibirtelecom." "Baikalwestcom" provides its services to more than 1,500,000 subscribers, which represents 57% of the total mobile services in the region. Since 2003, JSC "Baikalwestcom" has been listed among the 10 largest Russian mobile service providers.

About Nortel

Nortel is a recognized leader in delivering communications capabilities that make the promise of Business Made Simple a reality for our customers. Our next-generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel's technologies are designed to help eliminate today's barriers to efficiency, speed and performance by simplifying networks and connecting people to the information they need, when they need it. Nortel does business in more than 150 countries around the world. For more information, visit Nortel on the Web at www.nortel.com. For the latest Nortel news, visit www.nortel.com/news.

Certain statements in this press release may contain words such as "could", "expects", "may", "anticipates", "believes", "intends", "estimates", "targets", "envisions", "seeks" and other similar language and are considered forward-looking statements or information under applicable securities legislation. These statements are based on Nortel's current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which Nortel operates. These statements are subject to important assumptions, risks and uncertainties, which are difficult to predict and the actual outcome may be materially different from those contemplated in forward-looking statements. For additional information with respect to certain of these and other factors, see Nortel's Annual Report on Form10-K, Quarterly Reports on Form 10-Q and other securities filings 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.

(1)Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks.

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