August 10, 2005 09:00 ET

Cable One Selects Nortel as Strategic Solutions Provider for Cable VoIP Deployment

PHOENIX--(CCNMatthews - Aug 10, 2005) -

Planned Rollout of Cable Telephony Service Will Complete Triple Play Services Throughout Midwestern, Southern, Western United States

Cable One, a leading rural market cable operator in the United States, has selected Nortel (NYSE:NT)(TSX:NT) as its primary VoIP technology and professional services provider. Cable One plans to launch full-featured primary line telephony services in up to 45 markets throughout the midwestern, southern and western United States.

"Adding VoIP to the Cable One network is a major initiative," said Steve Fox, vice president, Digital Services and Technology, Cable One. "We needed a vendor with extensive deployment, integration and operations experience in the cable market as well as a PacketCable-qualified solution that delivers the unparalleled quality and reliability we demand for our customers. We are confident that Nortel's proven technology, professional services and ability to integrate multi-vendor networks will allow us meet our initial January 2006 goal of rolling out cable telephony service."

Cable One, which has more than 700,000 subscribers, has signed an agreement with Nortel to provide a complete, end-to-end VoIP solution incorporating Nortel technology and professional services. Nortel's efficient VoIP architecture will allow Cable One to consolidate switching resources to minimize capital, operating and engineering costs commonly associated with rural market network expansion. Cable One's network will feature PacketCable-qualified Nortel Communication Server (CS) 2000-Compact softswitches.

Cable One will use Nortel Global Services for planning, program management, multi-vendor integration and deployment of the VoIP solution to ensure a smooth end-to-end network implementation.

"Nortel has generated significant momentum in the global cable market by helping cable providers offer new voice, video and data services easily and cost effectively," said Dan Mondor, general manager, MSO Solutions, Nortel. "One of Nortel's key strategies in making this possible is integrating products from companies like IP Unity and Sigma Systems into our service offerings to give providers a complete cable telephony solution that addresses their current needs and grows with their businesses."

Nortel will provide Cable One with IP Unity's PacketCable-qualified Mereon 6000 Media Server and Mereon Unified Messaging application including voice mail. Cable One will also use Sigma's Service Management Platform and VoIP Service Package for end-to-end integration of billing solutions, softswitch operations, voice mail, and Cable One's competitive local exchange carrier (CLEC) partners. Both the IP Unity and Sigma products have gone through systems integration with Nortel's Cable VoIP solution to reduce deployment costs.

Cable One has a long-standing relationship with Nortel and is using a Nortel IP converged solution throughout its corporate and regional offices for seamless, scalable, real-time business communications.

"Nortel has been a valuable partner in building our internal voice and data communications network as well as in helping us strengthen our services for subscribers," Fox said. "IP telephony is a key component of our corporate network strategy, and implementing these solutions from Nortel allows us to capitalize on prior investments as we move forward into IP telephony technology."

Nortel ranked number one in the global markets for service provider softswitches and gateways for the entire year of 2004 and for the first quarter of 2005, according to Synergy Research Group.

The majority of cable operators around the world who have chosen to build their own VoIP networks have chosen Nortel, including Adelphia, Cable Onda, Charter Communications, Cox Communications, Dacom, Intercable, ish, Kabel BW, Rogers Cable, Shaw Cablesystems, TeleCable and Telenet.

About Cable One

Cable One, the cable division of The Washington Post Company (NYSE:WPO), operates 52 cable systems serving 715,000 subscribers in 19 states.

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 For the latest Nortel news, visit

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, and any related potential dilution of Nortel's common shares; 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 control over financial reporting and the conclusion of Nortel's management and independent auditor that Nortel's internal control over financial reporting is ineffective, which could continue to impact Nortel's ability to report its results of operations and financial condition accurately and in a timely manner; the impact of Nortel's and NNL's failure to timely file their financial statements and related periodic reports, including 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 Nortel's and NNL's public filings; the impact of management changes, including the termination for cause of Nortel's former CEO, CFO and Controller in April 2004; the sufficiency of Nortel's restructuring activities, including the work plan announced on August 19, 2004 as updated on September 30, 2004 and December 14, 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; increased consolidation among Nortel's customers and the loss of customers in certain markets; 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 monitoring of the capital markets for opportunities to improve its capital structure and financial flexibility; 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 and consolidation 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 of Nortel's forward purchase contracts; negative developments associated with Nortel's supply contracts and contract manufacturing agreements, including as a result of using a sole supplier for a key component of certain optical networks solutions; 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; any undetected product defects, errors or failures; 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. PacketCable is a trademark of Cable Television Laboratories, Inc. Mereon is a trademark of IP Unity.

Use of the terms "partner" and "partnership" does not imply a legal partnership between Nortel and any other party.

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