Nortel
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TSX : NT

Nortel

July 09, 2007 09:01 ET

Cricket Communications Awards Nortel US$135 Million for AWS Market Expansion

Offers Affordable Voice and Mobile Broadband Using High Capacity CDMA2000 1X and EV-DO Rev A Technologies

TORONTO, ONTARIO--(Marketwire - July 9, 2007) - Nortel(1) (TSX:NT)(NYSE:NT) has signed a three year, US$135 million agreement to supply Cricket Communications, Inc., a wholly owned subsidiary of Leap Wireless International, Inc. (NASDAQ:LEAP), with CDMA equipment to expand its network coverage. Cricket will use Nortel CDMA2000 1X and EV-DO Rev A equipment to expand their affordable mobile voice and data services to new markets across the U.S. using recently acquired Advanced Wireless Services (AWS) spectrum. This supports Cricket's goal of enriching the mobile experience by offering customers and local businesses flat-rate, unlimited service over a high-quality, all-digital wireless network.

"Cricket is steadily expanding into new markets extending our unlimited services with no long-term commitment wireless plans to more and more subscribers," said Glenn Umetsu, executive vice president, engineering and technical operations for Leap Wireless. "With Nortel's support we've recently launched markets in New York and North Carolina. We are pleased to expand our commitment with Nortel to bring their advanced CDMA products to our new AWS markets and continue offering our customers advanced voice and data services while maintaining our leadership position on cost."

Cricket has been expanding its coverage and upgrading its U.S. network with CDMA 1xEV-DO Rev A equipment. The data speed capabilities of Nortel's Rev A solution assist operators in their efforts to serve more subscribers using the same spectrum and to deliver new bandwidth-hungry applications like VoIP, real-time video, interactive gaming, location based services and rich media content like music and video.

"Cricket's creative approach to the wireless market meets consumer demand for economical services head-on," said Richard Lowe, president, Carrier Networks, Nortel. "Their continued choice of Nortel's CDMA technology is providing Cricket customers with both a great wireless voice solution and the fastest mobile data service available in the market today. CDMA continues to be an excellent network choice for today's consumer services and, with its economical upgrade path, it provides operators with a competitive advantage as they race to meet the growing demand for high speed data."

Nortel's Rev A solution allows users to receive data at burst speeds up to 3.1 Mbps and send data at up to 1.8 Mbps with significantly lower delay. These speeds are comparable to most fixed-line DSL connections.

Since choosing Nortel as a wireless infrastructure supplier in 2000, Cricket has deployed Nortel infrastructure in markets covering more than 26 million potential subscribers. This includes recent market expansions in Burlington and Raleigh-Durham, NC; Charleston, SC; and Rochester, NY. The two companies expect to continue their strong relationship for many years to come. As part of the $135M contract announced today, Cricket will earn credits which can be applied to future products and services.

Nortel supplies EV-DO equipment to 24 of the 47 operators across the globe currently offering commercial EV-DO service. Nortel CDMA equipment is designed to support EV-DO through simple upgrades to existing hardware. Nortel has designed, installed and launched more than 300 wireless networks in over 70 countries.

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. Further, actual results or events could differ materially from those contemplated in forward-looking statements as a result of the following
(i) risks and uncertainties relating to Nortel's business including: significant competition, competitive pricing practice, cautious capital spending by customers, industry consolidation, rapidly changing technologies, evolving industry standards, frequent new product introductions and short product life cycles, and other trends and industry characteristics affecting the telecommunications industry; any material, adverse affects on Nortel's performance if its expectations regarding market demand for particular products prove to be wrong; the sufficiency of recently announced restructuring actions; any negative developments associated with Nortel's suppliers and contract manufacturing agreements including our reliance on certain suppliers for key optical networking solutions components; potential penalties, damages or cancelled customer contracts from failure to meet delivery and installation deadlines and any defects or errors in Nortel's current or planned products; fluctuations in foreign currency exchange rates; potential higher operational and financial risks associated with Nortel's efforts to expand internationally; potential additional valuation allowances for all or a portion of Nortel's deferred tax assets if market conditions deteriorate or future results of operations are less than expected; a failure to protect Nortel's intellectual property rights, or any adverse judgments or settlements arising out of disputes regarding intellectual property; any negative effect of a failure to maintain integrity of Nortel's information systems; changes in regulation of the telecommunications industry or other aspects of the industry; any failure to successfully operate or integrate strategic acquisitions, or failure to consummate or succeed with strategic alliances; Nortel's potential inability to attract or retain the personnel necessary to achieve its business objectives or to maintain an effective risk management strategy;
(ii) risks and uncertainties relating to Nortel's liquidity, financing arrangements and capital including: any inability of Nortel to manage cash flow fluctuations to fund working capital requirements or achieve its business objectives in a timely manner or obtain additional sources of funding; high levels of debt, limitations on Nortel capitalizing on business opportunities because of senior notes covenants, or on obtaining additional secured debt pursuant to the provisions of indentures governing certain of Nortel's public debt issues; Nortel's below investment grade credit rating; any increase of restricted cash requirements for Nortel if it is unable to secure alternative support for obligations arising from certain normal course business activities, or any inability of Nortel's subsidiaries to provide it with sufficient funding; any negative effect to Nortel of the need to make larger defined benefit plans contributions in the future or exposure to customer credit risks or inability of customers to fulfill payment obligations under customer financing arrangements; or any negative impact on Nortel's ability to make future acquisitions, raise capital, issue debt and retain employees arising from stock price volatility and any declines in the market price of Nortel's publicly traded securities; and
(iii) risks and uncertainties relating to Nortel's prior restatements and current restatement and related matters including: any negative impact on Nortel and NNL of the current restatement; legal judgments, fines, penalties or settlements, or any substantial regulatory fines or other penalties or sanctions, related to the ongoing regulatory and criminal investigations of Nortel in the U.S. and Canada; the significant dilution of Nortel's existing equity positions resulting from the approval of its class action settlement; any significant pending or future civil litigation actions not encompassed by Nortel's class action settlement; any unsuccessful remediation of Nortel's material weakness in internal control over financial reporting resulting in an inability to report Nortel's results of operations and financial condition accurately and in a timely manner; Nortel's inability to access, in its current form, its shelf registration filed with the United States Securities and Exchange Commission (SEC); or any breach by Nortel of the continued listing requirements of the NYSE or TSX causing the NYSE and/or the TSX to commence suspension or delisting procedures. For additional information with respect to certain of these and other factors, see Nortel's Annual Report on Form10-K 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. CDMA2000 is a trademark of the Telecommunications Industry Association (TIA).

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