October 30, 2007 06:00 ET

Nortel Delivers IP Voice to Regional North America

New Lisbon Telephone Company, Hay Communications, Siskiyou Telephone Bringing New Voice, Multimedia Services to Rural Markets

TORONTO, ONTARIO--(Marketwire - Oct. 30, 2007) - Nortel(1) (TSX:NT)(NYSE:NT) is enabling regional service providers throughout North America to simplify the transition from traditional voice technology to VoIP making it possible for their customers to take telephony to the next level with new calling features, online account management and VoIP integration into multimedia services like IPTV. Nortel's technology seamlessly integrates with the service provider's existing TDM infrastructure allowing small and medium sized operators to cost-effectively bring these advanced VoIP communication services to their customers.

U.S. operators New Lisbon Telephone Company and Siskiyou Telephone as well as Canada's Hay Communications have chosen Nortel's Communication Server (CS) 1500, a new generation of IP softswitch, to help meet growing subscriber demand for next-generation voice services. These services include personal conference bridges and click-to-call functionality as well as new multimedia communications like PC-based voice calling.

Nortel's CS 1500 was launched in June 2007, and in just four months, Nortel has sold 59 networks to 45 regional North American carriers. The CS 1500 is an IMS-ready softswitch created specifically to address the needs of the regional carrier market, allowing service providers to continue to support traditional voice services while evolving to advanced IP-based communications that integrate voice and multimedia services from the same VoIP platform. The solution offers cost-effective evolution for existing Nortel TDM switch customers, such as the New Lisbon Telephone Company and Hay Communications, allowing them to reuse existing DMS-10 equipment and migrate to VoIP at their own pace. Phased evolution can reduce capital investment by up to 40 percent compared to full switch replacement.

New Lisbon Telephone Company(2), located in New Lisbon, Indiana, was the first customer in North America to use Nortel's CS 1500 to migrate from traditional voice technology to VoIP. "Nortel's CS 1500 solution was by far, the best value for our money," said Steve Poore, general manager, New Lisbon Telephone Company. "It was important for us to preserve our current network investments and Nortel's VoIP technology allowed us to do this while seamlessly integrating our existing technology into a new VoIP infrastructure. The migration was simple, cost-effective and most importantly, ensured we could continue offering the services our customers expect while preparing to support demand for newer VoIP services like IPTV in the future."

Siskiyou Telephone(2), located in Siskiyou County, California, is the largest announced network deployment of the CS 1500. "Nortel's carrier VoIP technology has helped us cost-effectively evolve to a powerful network capable of providing next-generation voice services for our customers," said Jim Lowers, president, Siskiyou Telephone. "We now have the ability to offer new voice and multimedia services our customers are demanding while setting the stage for future IMS-based services. Nortel's CS 1500 ensures we can continue to offer our customers a wide choice of advanced telecommunications solutions at a competitive price."

As one of the largest independent telephone systems in Canada, Hay Communications(2), located in Zurich, Ontario, was looking for VoIP technology that would allow them to easily and economically expand into new markets. Hay will be the first deployment of the CS 1500 in Canada.

"As a regional carrier with a demanding customer base, Hay Communications is working with Nortel to build the best network foundation for taking full advantage of the benefits of IP-based communications that provide the best voice service to our customers and easily expand our offerings in the future," said Angela Schneider, general manager, Hay Communications. "We needed to evolve our existing network to VoIP to meet customer demand for converged and multimedia services. Nortel's solution has allowed us to capitalize on these business opportunities while keeping our operational costs down."

Nortel's Carrier VoIP solutions are IMS-ready and have been designed to provide for a simple evolution to IMS services. According to Dell'Oro Group, Nortel is the worldwide leader in Carrier VoIP and has been for five consecutive years (2002-2006).

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 For the latest Nortel news, visit

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.

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