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Nortel

October 09, 2008 04:00 ET

Nortel Helps Comstar Connect Millions of People Across Russia

Nortel's Carrier VoIP Network Supporting Huge Volumes of Comstar's Long-Distance Voice Traffic Across the Country

MOSCOW, RUSSIA--(Marketwire - Oct. 9, 2008) - Comstar United TeleSystems, a major operator of integrated telecommunications services in Russia and the CIS, has implemented a VoIP network solution from Nortel(1) (TSX:NT)(NYSE:NT) to help accommodate the need for reliable, affordable long-distance VoIP across the entire Russian Federation. Comstar obtained its long-distance access area codes for Russia in July 2008 and has begun commercial operations of long-distance voice services.

Russia is the largest country in the world spanning more than an eighth of the Earth's land area. In a country of this size, affordable communications - especially long-distance communications - is important to stay connected with friends and family. With the new Carrier VoIP network from Nortel, Comstar can provide affordable, long-distance VoIP across all regions of the Russian Federation including Moscow, St. Petersburg, Novosibirsk, Yekaterinburg, Samara, Rostov-na-Donu, Vladivostok and other regional centres.

Sergey Pridantsev, president and chief executive officer of Comstar UTS, commented, "The provision of these access codes will enable us to launch our long distance service offering and become a multi-service operator. This integrated offering is a key competitive advantage for Comstar. We will be able to provide local, inter-zonal, inter-city and international telephony services, as well as broadband Internet access, IPTV services and other data transmission related solutions. The launch of a long-distance network will also accelerate our development in the Russian regions."

"The complete Nortel's Carrier VoIP solution delivered to Comstar supports the exponential growth in demand for a new era of communications being driven by Hyperconnectivity, a global trend where anything and everything is being connected to the network," said Sorin Lupu, president, Eastern Europe Markets, Nortel. "To address this huge demand for services, operators like Comstar have chosen Nortel's complete Carrier VoIP solutions that converge voice, video and data services onto one network while improving quality of service and reducing costs. Now, Comstar has a network capable of connecting Russian citizens across the country with far more affordable long distance rates."

Comstar's VoIP network is built on the Nortel Communication Server (CS) 2000, an IP multimedia softswitch that delivers network infrastructure services and supports a wide range of voice and multimedia features based on the open, industry-standard SIP protocol. CS 2000 is part of Nortel carrier multimedia network portfolio which also delivers application oriented solutions for carriers such as IP Powered Business serving enterprise and SMB subscribers as well as IP Powered Home serving the residential mass market. According to Dell'Oro Group, Nortel is the worldwide leader in carrier VoIP and has maintained that position for the last six years (2002-2007). Nortel has shipped 88 million carrier IP voice and multimedia ports to approximately 300 carriers globally.

About Comstar

JSC Comstar-United TeleSystems is the leading fixed-line telecommunications company in Moscow, both in terms of revenues and subscribers. Comstar UTS provides voice, data, Internet, pay-TV and other value-added services to residential and corporate subscribers and operators, using its extensive backbone network and exclusive last mile access to 97% of Moscow households. In addition, the Company offers communications services in five Russian regions and also in Armenia and Ukraine. As at the end of 2Q2008, Comstar has 3.6 million residential subscribers in Moscow and 783K Internet broadband access residential subscribers (BBA), as well as 40000 BBA residential subscribers in Russia's regions and the CIS. Group of Companies reported consolidated revenues of US$834.4m, with OIBDA margin of 39.5%. Comstar GDRs are listed under the symbol "CMST" on the London Stock Exchange and Moscow Central Stock Exchange. For more information visit web-page: http://www.comstar-uts.ru.(2)

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.

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

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

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