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Nortel

June 10, 2008 06:00 ET

Banverket ICT Delivers Enhanced Broadband Service to Sweden's Businesses and Communities with Nortel Optical Technology

Extending Network Capacity and Geographic Reach into Underserved Rural Areas

STOCKHOLM, SWEDEN--(Marketwire - June 10, 2008) - Nortel(1) (TSX:NT)(NYSE:NT) optical technology is helping Banverket ICT, one of Sweden's largest suppliers of network services, to extend flexible broadband network services into underserved rural areas and to new customers across Sweden. Banverket ICT is a subsidiary of Banverket, the authority responsible for Sweden's railways which operates a transport and communications network that runs alongside the country's 12,000 km rail network.

The Nortel solution enables Banverket ICT to deliver a range of cost-effective, next-generation transport services including transparent managed wavelength, high-speed data services, digital TV and traditional SDH services to its service provider clients.

The Banverket network enhancement project involves upgrading several hundred sites in the company's network across Sweden. The project began in mid 2007 and will be deployed in phases according to customer demands.

Nortel is supplying wavelength equipment, for applications requiring larger amounts of bandwidth, for Banverket ICT access points in Sweden's large city networks such as in Stockholm, Gothenburg and Malmo. And, as Sweden is a largely rural country, Banverket ICT is also maximizing use of the fibre network running alongside the railway to create additional network access points for delivering broadband services to underserved regional areas.

"Banverket ICT is striving to satisfy customers' requests for new managed services like high-speed data services by adding greater geographical service coverage and increased capacity," said Thomas Sjostrand manager technical and network strategy, Banverket ICT. "Delivering these cost-effectively requires us to use our existing fiber network assets more effectively and Nortel's solution helps us to do this."

"With 75 percent broadband penetration, Sweden is on the broadband fast track," said Philippe Morin, president, Metro Ethernet Networks, Nortel. "And Banverket, a long term Nortel customer, is prepared to keep up with traffic increases on customer networks created by business and consumer demand for new services such as multimedia downloads. With flexible and adaptable Nortel optical technology at the heart of Banverket's network, additional capacity requirements can be simply and easily satisfied."

The Nortel Metro WDM optical solution allows Banverket ICT to extend services beyond its core backbone to handle increased volumes of traffic at the network edges and deliver secure bandwidth services over a cost-effective, reliable and scalable infrastructure. With this solution, Banverket ICT can also address growing demand for reliable bandwidth services including 1 to 10Gbps Ethernet, the 1 to 10Gbps fibre channel is required by enterprises and enables the delivery of high bandwidth services, independent of the application and network protocol for signals ranging from 10's of Mbps to 10Gbps. As a result, enterprises requiring a data centre application to interconnect over the WAN can be assured of "always on" managed services to ensure business continuity for their mission critical applications.

Banverket ICT's complete backbone and Metro WDM solution is managed by the Nortel Optical Network Manager. The Nortel Optical Metro 5000 Series harnesses the power of WDM (Wavelength Division Multiplexing) to transparently deliver high bandwidth network services across an open, scalable and survivable optical transport platform. It supports protocol independent native data transport across a flexible and dense mix of Fibre Channel, Gigabit Ethernet, 10GE LAN and WAN PHY, ESCON, FICON/FICON Express, ISC/ISC3, SDH/SONET, D1 Video DV6000, and Prisma DT as well as SDH/SONET which are GFP mapped interfaces for supporting SONET/SDH interworking.

About Banverket ICT

Banverket ICT is a subsidiary of Banverket, the authority responsible for Sweden's railways and providing services such as signaling, track radio and other communications requirements to the railway service. It also offers broadband-based services to external customers delivered by its transport and communications network that runs along the length of the 12,000 km rail network.

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.

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