March 20, 2007 04:00 ET

Nortel Completes Industry's First Call over Ultra Mobile Broadband Network

Nortel Able to Deliver High Bandwidth Multimedia Over Any Major 4G Technology

TORONTO, ONTARIO--(CCNMatthews - March 20, 2007) - Nortel(1) (TSX:NT)(NYSE:NT) has achieved the industry's first live call over an Ultra Mobile Broadband (UMB) network delivering high-definition video and VoIP. With this demonstration, Nortel is the first in the industry to complete live calls using MIMO advanced antenna technology in each of the major 4G technologies - WiMAX, Long Term Evolution (LTE), and UMB.

The UMB call demonstrates Nortel's ability to deliver a personal wireless broadband experience anywhere, anytime over 4G networks with high-quality services such as video-conferencing, live video-streaming, and VoIP. Using Nortel's IP Multimedia Subsystem (IMS) and UMB technologies, crisp and clear voice conversations can be delivered with other high bandwidth applications running simultaneously on the network. Voice calls can also be maintained across multiple networks, meaning users can roam from UMB coverage to 2G without interruptions in their conversations using Nortel's VoiceCall Continuity (VCC) based handover.

"Nortel's development of 4G technologies is progressing with great momentum as we continually add new achievements in WiMAX, UMB, IMS and LTE to our long history of innovation," said Richard Lowe, president, Carrier Networks, Nortel. "With the emerging consumer demand for highly mobile broadband devices, we're focused on preparing our customers for a hyperconnected world. Whether they are moving at a measured pace to evolve their legacy network, or stepping boldly on stage with a disruptive 4G vision, Nortel has the solutions, services, and partners in place to help them succeed."

As well as the accomplishment in UMB, Nortel has shown leadership across 4G by collaborating with world-class partners to deliver bandwidth-intensive applications over WiMAX and LTE:

- WiMAX: Nortel, Kyocera Wireless, and Runcom achieved the industry's first live call over MIMO-powered WiMAX, streaming both voice and video over commercial spectrum.

- LTE: Nortel, in collaboration with LGE, completed the industry's first live video call over LTE with Uplink Multi-user MIMO over commercial spectrum.

All of Nortel's 4G technologies will be demonstrated in Nortel's booth (# 2663 in Hall B1) at CTIA Wireless 2007 in Orlando, Florida, March 27 - 29.

In addition to the success in its labs, Nortel is also seeing success with WiMAX in the field, engaging in trials with trailblazing network operators such as TVA in Brazil and Golden Telecom in Russia. Nortel has also successfully completed a WiMAX trial in the northern Tohoku region of Japan, delivering high-bandwidth applications including video-streaming, video surveillance and video-conferencing. This trial was part of a Nortel and Toshiba Corporation initiative to work with the Japanese government on its "Next Generation Broadband Strategy 2010" through the Ministry of Internal Affairs and Communications (MIC).

"The Tohoku WiMAX trial was conducted in a rural area with obstacles to coverage that mimic the challenges that operators will face when delivering commercial wireless services around the world," said Nick Vreugdenhil, president, Nortel Japan. "The success in Tohoku proves that Nortel's innovative WiMAX solutions are able to deliver high quality, fast and reliable broadband services regardless of challenges posed by terrain or location."

Nortel's 4G strategy is anchored by industry-leading innovations in two key access technologies - OFDM and MIMO - and the development of an all IP core technology - IMS. OFDM and MIMO are the underlying technologies for WiMAX, LTE and UMB. Nortel has dedicated more than eight years to developing these technologies and holds intellectual property rights in OFDM and MIMO application in 4G.

MIMO is an advanced antenna technology that uses the OFDM modulation technique to carry heavy traffic across a wireless network even in surroundings where there are physical obstacles barring the way of the wireless signal, such as the clusters of tall buildings or mountainous terrain. These technologies can deliver fixed and mobile broadband services with minimal infrastructure.

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. 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 restatements and related matters including: Nortel's most recent restatement and two previous restatements of its financial statements and related events; the negative impact on Nortel and NNL of their most recent restatement and delay in filing their financial statements and related periodic reports; 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; any significant pending civil litigation actions not encompassed by Nortel's proposed class action settlement; any substantial cash payment and/or significant dilution of Nortel's existing equity positions resulting from the approval of its proposed class action settlement; any unsuccessful remediation of Nortel's material weaknesses 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; the time required to implement Nortel's remedial measures; Nortel's inability to access, in its current form, its shelf registration filed with the United States Securities and Exchange Commission (SEC), and Nortel's below investment grade credit rating and any further adverse effect on its credit rating due to Nortel's restatements of its financial statements; any adverse affect on Nortel's business and market price of its publicly traded securities arising from continuing negative publicity related to Nortel's restatements; Nortel's potential inability to attract or retain the personnel necessary to achieve its business objectives; 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;
(ii) risks and uncertainties relating to Nortel's business including: yearly and quarterly fluctuations of Nortel's operating results; reduced demand and pricing pressures for its products due to global economic conditions, significant competition, competitive pricing practice, cautious capital spending by customers, increased 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; the sufficiency of recently announced restructuring actions, including the potential for higher actual costs to be incurred in connection with these restructuring actions compared to the estimated costs of such actions and the ability to achieve the targeted cost savings and reductions of Nortel's unfunded pension liability deficit; any material and adverse affects on Nortel's performance if its expectations regarding market demand for particular products prove to be wrong or because of certain barriers in its efforts to expand internationally; any reduction in Nortel's operating results and any related volatility in the market price of its publicly traded securities arising from any decline in its gross margin, or fluctuations in foreign currency exchange rates; any negative developments associated with Nortel's supply contract and contract manufacturing agreements including as a result of using a sole supplier for key optical networking solutions components, and any defects or errors in Nortel's current or planned products; any negative impact to Nortel of its failure to achieve its business transformation objective; additional valuation allowances for all or a portion of its deferred tax assets; Nortel's failure to protect its intellectual property rights, or any adverse judgments or settlements arising out of disputes regarding intellectual property; changes in regulation of the Internet and/or other aspects of the industry; Nortel's failure to successfully operate or integrate its strategic acquisitions, or failure to consummate or succeed with its strategic alliances; any negative effect of Nortel's failure to evolve adequately its financial and managerial control and reporting systems and processes, manage and grow its business, or create an effective risk management strategy; and
(iii) risks and uncertainties relating to Nortel's liquidity, financing arrangements and capital including: the impact of Nortel's most recent restatement and two previous restatements of its financial statements; 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 support facility covenants, or on obtaining additional secured debt pursuant to the provisions of indentures governing certain of Nortel's public debt issues and the provisions of its support facility; 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; any negative impact on Nortel's ability to make future acquisitions, raise capital, issue debt and retain employees arising from stock price volatility and further declines in the market price of Nortel's publicly traded securities, or the share consolidation resulting in a lower total market capitalization or adverse effect on the liquidity of Nortel's common shares. For additional information with respect to certain of these and other factors, see Nortel's Annual Report on Form10-K/A, 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.

(1)Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks.

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