June 13, 2007 14:11 ET

Grupo Iusacell Extending Mobile Broadband Services to 10 Cities in Mexico with Nortel 3.5G Network Upgrade

Nortel's EV-DO Rev A Technology Meets Demand for High-Bandwidth Services

MEXICO CITY, MEXICO--(Marketwire - June 13, 2007) - Nortel(1) (TSX:NT)(NYSE:NT) is expanding Grupo Iusacell's wireless network to extend 3.5G mobile broadband services such as video, online gaming and TV to 10 new cities in Mexico. Iusacell, the first 3.5G network in Mexico, currently has four million subscribers across the country.

Nortel's EV-DO Rev A technology will boost capabilities of Iusacell's existing CDMA network to support growing demand for high-bandwidth wireless services like mobile VoIP, broadcast quality TV and real-time video monitoring.

"Iusacell is a leading wireless broadband service provider in Mexico and we are strengthening our market position by becoming the first 3.5G operator in the country," said Gustavo Guzman, CEO, Grupo Iusacell. "Through our collaboration with Nortel, we are improving our network performance, the quality of our services and ensuring we reduce operating costs by maximizing our existing infrastructure investment to support new growth."

"Nortel's technology will help prepare Iusacell for the new era of Hyperconnectivity where anything that can be connected to the network, will be connected," said Pablo Vazquez, president, Nortel Mexico. "The high-quality, high-bandwidth mobile capabilities of our 3.5 G technology provides a very impressive user experience that will allow Iusacell to increase customer loyalty through a range of new competitive services."

Under the agreement, Nortel reinforces its position as one of the most important suppliers providing CDMA2000 1XEV-DO Revision A radio base stations, radio network controllers, switching platforms and other related equipment across Iusacell's existing network.

Nortel's EV-DO Rev A solution is capable of providing peak data rates of up to 3.1 Mbps from the cellular base station to the subscriber and up to 1.8 Mbps from the subscriber back to the cellular base station to provide speeds comparable to fixed-line DSL. Nortel has been a key contributor to the development of 1xEV-DO Rev 0 and Rev A standards in 3GPP2. The market leader in 1xEV-DO, Nortel's solution has been deployed on every continent across the globe.

About Iusacell

Grupo Iusacell, S.A. de C.V. (Iusacell, BMV: CEL) is a wireless cellular and PCS service provider in Mexico with a national footprint. Iusacell offers more and better voice communication and data services through state-of-the-art technology, such as its new 3G network, throughout all of the regions in which it operate. In addition to our core mobile telephony services, we also provide a wide range of other telecommunications services, including long distance, wireless local telephony and data transmission services. Additional information is available at

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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