June 11, 2008 06:38 ET

Nortel Accelerates 4G Strategy to Bring Both WiMAX and LTE to Market Faster

Product Development Aligned to Meet Early Demand for Wireless Broadband

TORONTO, ONTARIO--(Marketwire - June 11, 2008) - Nortel(1) (TSX:NT)(NYSE:NT) is aligning its 4G wireless broadband strategy to address early market opportunities that are emerging for WiMAX and LTE. As part of this strategy, Nortel is focusing its main wireless R&D resources on 4G LTE and wireless applications, with WiMAX development re-aligning around the strategic agreement announced today with Alvarion.

This enables Nortel to achieve faster time-to-market with WiMAX, at a lower cost, while accelerating LTE development to meet a demand that is emerging faster than the industry originally predicted.

"The increasing demand for mobile data with the advent of USB dongles, embedded laptops, and smartphones built on the iPhone model is driving traffic far faster than operators had anticipated," said Dr. Phil Marshall, vice president, Yankee Group. "Operators have realized that they need to get to 4G faster than originally anticipated. Major players such as China Mobile, NTT DoCoMo and Verizon have announced aggressive plans to roll out LTE, which we believe is the tip of the iceberg. The WiMAX market also continues to be very dynamic, with the underserved broadband markets and disruptive wireless operators in mature markets rapidly emerging as key market segments for that technology."

"Nortel is targeting its 4G portfolio to capitalize on the rapidly growing market opportunities associated with wireless broadband - and to help operators meet these needs quickly," said Richard Lowe, president, Carrier Networks, Nortel. "WiMAX will provide fast, cost-effective coverage and mobile broadband capabilities for early movers in the wireless broadband market. LTE will provide the high-speed, high-capacity mobile broadband network evolution sought by many established network operators, allowing them to offer not only faster connections but also an enriched user experience that includes real-time services such as mobile TV, web services, mobile advertising, and carrier-hosted services for businesses."

"Both WiMAX and LTE represent game-changing opportunities for Nortel because they require advances in network speed and capacity that Nortel knows how to deliver," continued Lowe.

The Nortel and Alvarion strategic agreement will form a complete, end-to-end WiMAX solution for each company's customers around the world, combining Alvarion's WiMAX access platform with Nortel's strength in all-IP network core technologies, backhaul, developing applications for carriers, such as VoIP and unified communications, and end-to-end lifecycle support through Nortel Global Services for WiMAX.

Nortel has appointed Scott Wickware as the general manager of WiMAX to drive Nortel's contributions to this strategic collaboration, including integration of these applications which will allow users to take advantage of the pervasive bandwidth offered by WiMAX while providing a simple communications experience.

"As the level of Hyperconnectivity increases around the world, more and more connected devices are driving increased traffic on wireless networks and users expect mobile communications to offer the same speed and capabilities as wireline connections," said Wickware. "The Nortel and Alvarion joint WiMAX solution will make business simple for WiMAX operators by providing a solution that recognizes and delivers on today's market needs for fast broadband coverage that is cost-effective and simple to deploy, while evolving to meet the ever-increasing demands for mobile connectivity."

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. The assumptions, although considered reasonable by Nortel at the date of this press release, may prove to be inaccurate and consequently Nortel's actual results could differ materially from its expectations set out in this press release. 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 as a result of factors including current economic uncertainties, 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 related matters including: any negative impact on Nortel and NNL of such restatements; legal judgments, fines, penalties or settlements related to the ongoing 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; or any significant pending or future civil litigation actions not encompassed by Nortel's class action settlement. 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 United States Securities and Exchange Commission. 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.

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