Nortel

Nortel

March 09, 2005 10:00 ET

Nortel Demonstrates OFDM, MIMO at Super High Speeds; Technology to Improve Spectrum Efficiency, Enhance User Experience, Decrease Operator Costs


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: NORTEL

NYSE, TSX SYMBOL: NT

MARCH 9, 2005 - 10:00 ET

Nortel Demonstrates OFDM, MIMO at Super High Speeds;
Technology to Improve Spectrum Efficiency, Enhance
User Experience, Decrease Operator Costs

OTTAWA--(CCNMatthews - Mar 9, 2005) -

Nortel (NYSE:NT) (TSX:NT) has achieved another wireless technology
milestone, demonstrating a significant increase in data throughput using
beyond 3G (third generation) MIMO (multiple-input, multiple-output) and
OFDM (orthogonal frequency division multiplexing).

The demonstration took place at Nortel's Wireless Technology Lab in
Ottawa. Nortel will highlight its 3G MIMO and OFDM success and recent
learnings from its lab at CTIA Wireless 2005 in New Orleans (Ernest N.
Morial Convention Center, Hall C, Booth #3125) March 14-16.

MIMO and OFDM will make it possible for wireless subscribers to download
bandwidth-hungry applications - large file transfers, streaming video
and mobile gaming - at speeds higher than today's commercial 3G
networks. Nortel has invested in advanced development of OFDM and MIMO
for the past six years and has demonstrated the benefits and commercial
feasibility of these technologies to more than 100 customers.

"Nortel is innovating beyond 3G to develop future wireless broadband
technologies that will leverage existing service provider investments
and enhance the subscriber experience through feature-rich services and
multimedia applications," said John Hoadley, vice president, Next
Generation Wireless Access, Carrier Networks, Nortel. "We believe that
OFDM and MIMO will be vital to service provider success and will be the
foundation of future wireless broadband networks."

OFDM and MIMO together can support up to two times more subscribers than
OFDM alone. This will position service providers to make more efficient
use of existing spectrum.

In Ottawa, Nortel demonstrated large information transfers with peak
data rates at 37 Mbps over a standard 5MHz PCS mobility band, taking
into account noise and fading conditions found on a real-world cellular
network. The test network showed that with OFDM and MIMO, wireless
subscribers can download a 128 MB file in approximately 30 seconds -
four to 10 times faster than today's 3G wireless networks.

OFDM is the base radio technology used by WiFi (802.11) and WiMAX
(802.16). MIMO is an advanced antenna and space-time processing
technology. The first broad deployment of standards-based wireless wide
area networks employing OFDM technology is anticipated in 2006 with the
introduction of WiMAX 802.16e products. In addition, Nortel is also
proposing OFDM/MIMO as its evolution vision beyond HSDPA/HSUPA and CDMA
1xEV-DO into 3GPP and 3GPP2 wireless standards.

In 2001, Nortel completed an extensive propagation trial in central
London, England, proving the feasibility of MIMO to provide substantial
performance gains in an urban deployment. In February 2003, Nortel
demonstrated OFDM and MIMO peak data rates of 20 Mbps over a standard
5MHz PCS band. The recent Ottawa demonstration nearly doubled that
speed.

Nortel is an industry innovator and at the forefront of all broadband
access technologies, including wide area cellular, wireline and wireless
LAN. In 2004, Nortel's Wireless Technology Lab in Ottawa filed 62 new
patent applications, and 33 previous applications were granted.

Nortel is a member of many wireless industry and standards bodies,
including the WiMAX Forum, Third Generation Partnership Project (3GPP),
3GPP2, the Cellular Telecommunications & Internet Association (CTIA),
IEEE, the Wi-Fi Alliance, and the Wireless Communications Association
(WCA).

Nortel has designed, installed and launched more than 300 wireless
networks in over 70 countries. Nortel was the industry's first supplier
with wireless networks operating in all advanced radio technologies
(GSM/GPRS/EDGE, CDMA2000 1X and 1xEV-DO, UMTS and WLAN) and is the only
end-to-end provider of all next generation wireless solutions, as well
as edge and core network solutions for IP, ATM and optical transport.

About Nortel

Nortel is a recognized leader in delivering communications capabilities
that enhance the human experience, ignite and power global commerce, and
secure and protect the world's most critical information. Serving both
service provider and enterprise customers, Nortel delivers innovative
technology solutions encompassing end-to-end broadband, Voice over IP,
multimedia services and applications, and wireless broadband designed to
help people solve the world's greatest challenges. Nortel does business
in more than 150 countries. For more information, visit Nortel on the
Web at www.nortel.com. For the latest Nortel news, visit
www.nortel.com/news.

Certain information included in this press release is forward-looking
and is subject to important risks and uncertainties. The results or
events predicted in these statements may differ materially from actual
results or events.

Factors which could cause results or events to differ from current
expectations include, among other things: the outcome of regulatory and
criminal investigations and civil litigation actions related to Nortel's
restatements and the impact any resulting legal judgments, settlements,
penalties and expenses could have on Nortel's results of operations,
financial condition and liquidity; the findings of Nortel's independent
review and implementation of recommended remedial measures; the outcome
of the independent review with respect to revenues for specific
identified transactions, which review will have a particular emphasis on
the underlying conduct that led to the initial recognition of these
revenues; the restatement or revisions of Nortel's previously announced
or filed financial results and resulting negative publicity; the
existence of material weaknesses in Nortel's internal controls over
financial reporting; the impact of Nortel's and NNL's failure to timely
file their financial statements and related periodic reports, including
breach of its support facility and public debt obligations and Nortel's
inability to access its shelf registration statement filed with the
United States Securities and Exchange Commission ("SEC"); ongoing SEC
reviews, which may result in changes to our public filings; the
potential delisting or suspension of Nortel's and NNL's publicly traded
securities; the impact of management changes, including the termination
for cause of Nortel's former CEO, CFO and Controller in April 2004; the
sufficiency of Nortel's restructuring activities, including the work
plan announced on August 19, 2004 as updated on September 30, 2004,
including the potential for higher actual costs to be incurred in
connection with restructuring actions compared to the estimated costs of
such actions;

cautious or reduced spending by Nortel's customers; fluctuations in
Nortel's operating results and general industry, economic and market
conditions and growth rates; fluctuations in Nortel's cash flow, level
of outstanding debt and current debt ratings; Nortel's ability to
recruit and retain qualified employees; the use of cash collateral to
support Nortel's normal course business activities; the dependence on
Nortel's subsidiaries for funding; the impact of Nortel's defined
benefit plans and deferred tax assets on results of operations and
Nortel's cash flow; the adverse resolution of class actions, litigation
in the ordinary course of business, intellectual property disputes and
similar matters; Nortel's dependence on new product development and its
ability to predict market demand for particular products; Nortel's
ability to integrate the operations and technologies of acquired
businesses in an effective manner; the impact of rapid technological and
market change; the impact of price and product competition; barriers to
international growth and global economic conditions, particularly in
emerging markets and including interest rate and currency exchange rate
fluctuations; the impact of rationalization in the telecommunications
industry; changes in regulation of the Internet; the impact of the
credit risks of Nortel's customers and the impact of customer financing
and commitments; stock market volatility generally and as a result of
acceleration of the settlement date or early settlement, which is
currently not available, of Nortel's forward purchase contracts; the
impact of Nortel's supply and outsourcing contracts that contain
delivery and installation provisions, which, if not met, could result in
the payment of substantial penalties or liquidated damages; and the
future success of Nortel's strategic alliances.

For additional information with respect to certain of these and other
factors, see the most recent Annual Report on Form 10-K and Quarterly
Report on Form 10-Q filed by Nortel 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.

Nortel, the Nortel logo and the Globemark are trademarks of Nortel
Networks.

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