Nortel
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Nortel

June 17, 2008 06:00 ET

Nortel Continues to Build Customer Base for Carrier Ethernet Portfolio

Independent Operators Underscore Carrier Ethernet's Value Proposition

LAS VEGAS, NEVADA--(Marketwire - June 17, 2008) - Nortel(i) (TSX:NT)(NYSE:NT) is continuing to build its customer base for Carrier Ethernet solutions that offer simplicity over complexity and ultimately drive down network costs. With over 40 customers around the world acquired within the last 12 months, a vendor ecosystem of more than 25 members and a growing product portfolio, Nortel is demonstrating how its innovative technologies have defined Carrier Ethernet as a viable, cost-effective metro infrastructure.

"Nortel strongly believes in the long-term value to service providers of our Carrier Ethernet solution," said Philippe Morin, president, Metro Ethernet Networks, Nortel. "Nemertes Research(1) indicates that the demand for bandwidth could outpace network capacity by 2010, so we're not surprised to find that operators large and small are turning to Nortel's Carrier Ethernet solutions to deliver performance, scale, and reliability advantages over other metro infrastructure alternatives out there, while maintaining cost-effectiveness. It's a strong solution intended to meet today's business demands and tomorrow's necessities."

Among Nortel's 40 customers are U.S. service providers Panhandle Telephone Cooperative, Golden West Telecom, Frontier and Dakota Carrier Network as well as KPN in the Netherlands, China Netcom, Australia's Silk Telecom and Promigas Telecomunicaciones in Colombia.

Panhandle Telephone Cooperative, Inc (PTCI)(ii) has always been on the leading edge in deploying innovative technologies across its area of services in Oklahoma and Texas. Whether deploying digital telephony in the 80's or fiber-based transport in the 90's, PTCI has grown to become a full-service provider offering telephone, Internet, cellular, and cable services to over 28,000 customers. Today, PTCI announced it will support its newest, residential, triple play offerings that include HD IPTV with a significant deployment of Nortel's Carrier Ethernet solutions(2).

"There's no doubt in our minds that choosing Nortel's PBB/PBT solution over the competitor's MPLS offering was the right decision to expand our network capacity to support our drive into new markets with new services", said Gary Burke, plant manager, PTCI. "It only took five weeks between the time we signed the purchase order and the time this solution was running in our network. As a result, we are quickly able to meet customer demand for added video services and have already seen the revenue from our expanded network capacity."

Golden West Telecommunications(ii) has grown to be South Dakota's largest independent telecommunications provider and the 35th largest telecommunications company in the nation, with service to over 43,000 telephone customers, 15,000 Internet subscribers, and 12,000 cable television viewers. Nortel's Carrier Ethernet solution(3) was recently deployed to support high-bandwidth, 10/100 Mb/s for Ethernet Virtual Private Network (E-VPN) services. Services are already up and running in key Golden West communities throughout South Dakota.

"Business services represent a growing opportunity for us to both foster further economic growth in our area, and tap into new sources of revenue," said Galen Boyd, western regional manager for Golden West. "By deploying Nortel's Carrier Ethernet solution as a complement to our existing Nortel optical infrastructure, we gain the network scale and quality that we need to support this important customer segment."

"With the steady increase of Internet traffic, the demand for more efficient bandwidth and the rising OpEx associated with these requirements, service providers are being forced to explore and adopt new business models if they are to stay competitive in an increasingly aggressive market. Investments in network intelligence are critical," said Ray Mota, chief strategist, Synergy Research Group. "Because of their ability to adapt easily and move more quickly than Tier 1 carriers, independents carriers can be the pioneers in implementing Carrier Ethernet technology innovations."

These customer wins underscore the potential that exists for each of three major application areas driving the adoption of Carrier Ethernet: business E-VPNs, residential triple-play backhaul and mobile backhaul. Together, these are experiencing aggressive uptake in the market (service revenues are expected to top $17B this year, according to Infonetics(4)). Carrier Ethernet represents a scalable, manageable, and highly-efficient infrastructure capable of supporting all three application areas today.

Nortel is showcasing its Carrier Ethernet solution at the NXTcomm Trade Show in Las Vegas this week. Visit booth SL2816 to see why over 40 customers have already made the move to Nortel's carrier Ethernet and to see how our Nortel-led Carrier Ethernet Ecosystem is promoting facilitating multi-vendor interoperability.

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 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.

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

(ii)This is a 3rd party link as described in our Web linking practices.

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

(1) Market Forecast: Nemertes Research, November 2007

(2) Including Metro Ethernet Routing Switch 8600, Metro Ethernet Services Unit 1850/1880 and Metro Ethernet Manager

(3) Nortel's Metro Ethernet Services Unit 1850

(4) Infonetics Research, Ethernet and IP MPLS VPN Services, Michael Howard, April 2007

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