March 15, 2005 08:01 ET

Nortel Packet Voice Core Product Enhancements Boost Wireless Network Efficiencies to Reduce Operator Costs




MARCH 15, 2005 - 08:01 ET

Nortel Packet Voice Core Product Enhancements Boost
Wireless Network Efficiencies to Reduce Operator Costs

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

Nortel (NYSE:NT)(TSX:NT) has introduced significant product enhancements
to its wireless packet voice core product portfolio for GSM and UMTS
operators designed to significantly reduce operating costs and increase
network efficiency while improving voice quality for subscribers.

Nortel's packet voice core technology builds on the next generation of
Third Generation Partnership Project (3GPP) Release 4 standards,
commonly known as R4. This technology can reduce operator costs by
enabling more efficient use of transmission capacity and reducing the
amount of network equipment required to support wireless backhaul.

"Wireless operators recognize that packetizing their voice core network
is a critical factor in driving network efficiencies and improving the
subscriber experience," said Peter MacKinnon, president, GSM/UMTS,
Nortel. "Our R4 solution leverages our expertise across wireless,
wireline and packet technology to position operators for success."

Unlike traditional circuit-switched Mobile Switching Centers (MSCs), R4
technology makes use of Call Servers and Media Gateways that separate
the call control software and the physical ports carrying the voice
calls. In addition to lowering the cost of switching and transporting
calls, Nortel's R4 solution provides operators with advanced software
features that improve voice quality for subscribers. Nortel R4
technology allows wireless operators to reduce operational costs with
minimal capital expenditures.

The enhancements include the following:

-- Introduction of VSP4 Card -- Nortel is introducing fourth generation
VSP technology, the VSP4 card, built on Nortel's extensive experience
with packet voice gateway technology since shipments of VSP1 began in
1999. The VSP4 card provides packet network switching and routing for
voice channels as well as support for special functions such as lawful
intercept, conference calling, tones and announcements.

-- IP based Signaling -- Nortel is introducing IP based signaling for
GSM and UMTS operators to be able to transport the signaling traffic
over an IP network based on 3GPP standards. This will enable operators
to deploy high speed next generation signaling interfaces and a greater
number of signaling links. This functionality will reduce the footprint
requirement by two-thirds for signaling equipment and reduce the
backhaul cost significantly for signaling traffic.

-- Voice Compression -- This functionality provides a solution for
compressed voice traffic over packet backbone networks. This enhancement
will reduce the bandwidth requirement by almost 75 percent for traffic
between media gateways on the packet backbone.

-- Voice Quality Features -- Nortel's media gateway supports integrated
Echo Cancellation as well as advanced voice quality processing features,
many of which are patented Nortel features. Voice quality features are
designed to ensure that wireless packet voice quality is as good as, or
better than, traditional TDM voice service quality.

Nortel is currently deploying R4 technology in several major markets
across Cingular Wireless' national GSM network. In addition, Nortel
recently announced a GSM/GPRS/EDGE upgrade with Telecommunications
Services of Trinidad and Tobago, Limited (TSTT), which will include R4
technology. Upon completion of these two projects, Nortel will have
deployed over two million ports of its R4 solution in the Americas.

The R4 enhancements further reinforce Nortel's strong momentum in voice
over packet technology (VoP). Nortel has announced customer deployments
across all four VoP market segments: local, long distance, cable and
wireless. Nortel currently holds the #1 market share position in service
provider softswitches and gateway ports, according to Synergy Research
Group, In-Stat/MDR and the Dell 'Oro Group.

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.

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 For the latest Nortel news, visit

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


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