Nortel

Nortel

March 15, 2005 08:01 ET

Nortel Outlines CDMA 1xEV-DO Revision A Strategy


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: NORTEL

NYSE, TSX SYMBOL: NT

MARCH 15, 2005 - 08:01 ET

Nortel Outlines CDMA 1xEV-DO Revision A Strategy

NEW ORLEANS--(CCNMatthews - Mar 15, 2005) -

Technology Expected to Increase Operator Revenue Potential, Improve End
User Experience With High Speed Data Services

Nortel (NYSE:NT) (TSX:NT), a global telecommunications leader in
wireless infrastructure and advanced third-generation (3G) technologies,
plans to offer CDMA2000 1xEV-DO (evolution data optimized) Revision A
(DO Rev A) technology designed to allow CDMA network operators,
including Verizon Wireless, to increase revenues through improved high
speed data services.

Announced today at CTIA Wireless 2005, the largest wireless tradeshow in
North America, Nortel's DO Rev A technology will allow CDMA network
operators to provide more feature-rich wireless services such as
interactive 3D gaming, mobile music, and a variety of IP services
including Voice over Internet Protocol (VoIP) and high-speed file
transfers. It will also support virtual real-time interactive access to
services such as push-to-talk, mobile television, and video telephony.

"Given the tremendous success and momentum of 1xEV-DO, Nortel has
embarked on an aggressive program to deliver 1xEV-DO Rev A," said
Richard Lowe, president, CDMA, Nortel. "Nortel's DO Rev A technology
will allow operators to serve more customers on the same spectrum while
delivering VoIP and other advanced multimedia services that enhance the
end user's experience and increase subscriber loyalty."

The DO Rev A technology delivers peak data rate bursts up to 3.1 Mbps
(megabits per second) on the forward link and up to 1.8 Mbps on the
reverse link. DO Rev A operates in the 1.25 MHz channel and is optimized
for packet data service that provides one of the lowest costs per bit
when compared to other cellular technologies.

"DO Revision A is the logical next step for us to consider as we pursue
our goal to migrate our 1xEV-DO 3G network to deliver the latest
applications and services to our customers," said Ed Salas, vice
president of network planning, Verizon Wireless. "EV-DO Rev A fits in
with our mantra of providing our business and individual customers
superior voice and data networks in the U.S."

Nortel is planning live market trials with Verizon Wireless beginning in
2006.

DO Rev A technology builds on Nortel's leadership position in CDMA and
extends the scope of its investment protection strategy. Nortel's CDMA
base stations can be upgraded to DO Rev A through simple modular
upgrades, allowing all other existing hardware and software to be
reused. Nortel currently supplies EV-DO to 11 out of the 17 operators
that have commercially launched across the globe. Nortel was the first
to commercially offer DO in South America with Vesper, the first in
Central America with BSI Guatemala, the first in Australia with Telstra
and the first to commercially offer DO in 450 MHz in Eastern Europe with
Eurotel.

DO Rev A allows operators to manage various users and applications with
different levels of priority, making it possible to offer tiered
services and multiple pricing options for different types of services
and applications. Operators also can make additional security
enhancements by using authentication mechanisms that allow the operator
to identify users and give specific access rights to services based on
the user's profile.

DO Rev A has been approved by the 3GPP2 Technical Specification Group
(TSG-C). Nortel has been a major contributor to the development of
1xEV-DO Rev. 0 and Rev. A standards in 3GPP2. Nortel has proposed key
concepts to the standards that improve packing efficiency for High Rate
Packet Data (HRPD) Air interface. Nortel was also instrumental in
providing leadership in the development process of 1xEV-DO Revision A
physical layer.

Nortel is an industry innovator and at the forefront of all broadband
access technologies, including wide area cellular, wireline and wireless
LAN. 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 Verizon Wireless

Verizon Wireless owns and operates the nation's most reliable wireless
network, serving 43.8 million voice and data customers. Headquartered in
Bedminster, NJ, Verizon Wireless is a joint venture of Verizon
Communications (NYSE:VZ) and Vodafone (NYSE:VOD) (LSE:VOD). Find more
information on the Web at www.verizonwireless.com. To preview and
request broadcast-quality video footage and high-resolution stills of
Verizon Wireless operations, log on to the Verizon Wireless Multimedia
Library at www.verizonwireless.com/multimedia.

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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