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LG-Nortel

LG-Nortel

April 01, 2009 06:01 ET

Nortel Powering More Than 1 Million LG Dacom Voice Over Broadband Customers

Wireless, Voice, Video and Data Service Passes Milestone in Just 15 Months

SEOUL, KOREA--(Marketwire - April 1, 2009) - Operator LG Dacom's next-generation fixed and mobile communications service - known as myLG070 - has attracted more than 1.3 million customers since its launch only 15 months ago. The popular voice and multimedia solution is powered by VoIP technology from LG-Nortel, a joint venture of LG Electronics and Nortel(1) (TSX:NT)(OTCBB:NRTLQ), and has helped propel LG Dacom into the market leader position for VoIP service in Korea.

LG Dacom, the second-largest telecommunications provider in Korea, offers customers a broad range of telephone and triple-play (VoIP, IPTV and high-speed Internet) services. The myLG070 voice over broadband service, launched in mid 2007, expands on LG Dacom's vision to offer even more innovative multimedia services by enabling users to use a WiFi connection to augment speeds and connectivity.

"The rapid uptake of myLG070 confirms that customers see real value in converged communications," said Hyo-Gwan Kang, leader, Network Planning Team, LG Dacom. "The LG-Nortel solution enabled us to offer a low entry price with a high-value converged service that seamlessly roams between fixed-line services and wireless networks. It has helped LG Dacom become Korea's largest VoIP service provider, and at our current rate, we expect to surpass more than two million customers by the end of 2009. We are well positioned to execute on our vision of becoming a one-stop shop for information communications across Korea's households."

"Converged services represent the future of home delivery by offering rich and simple communication services spanning advanced voice, web services, fixed-mobile convergence and communication enabled TV," said Dong-Woo Lee, leader, Multi Packet Solution Sales, LG-Nortel. "LG-Nortel technology is enabling LG Dacom to deliver the future to its customers today - cost-effective triple-play offerings, reinforced by other attractive offers like free on-network calls and discounts on service bundles."

myLG070 is powered by Nortel carrier-grade switches and SIP application software, which delivers innovative IP-based services such as presence, videoconferencing, instant messaging, gaming, video streaming, advertising and other rich media applications to any device. Nortel's VoIP consumer solution provides seamless delivery of VoIP and other advanced IP applications directly into subscribers' homes and offices over any broadband link - fixed or wireless.

LG Dacom and LG-Nortel built myLG070 using the Nortel Communication Server (CS) 2000, an IP multimedia softswitch that supports a wide range of voice and multimedia features. Nortel's CS 2000 helps create new revenue streams for operators, can reduce their operating expenses by up to 30%, and reduce capital expenses by up to 50%. LG-Nortel also provided turnkey services from Nortel's end-to-end, multi-vendor services portfolio including change design, engineering, installation, commissioning, network integration and marketing support.

According to Dell'Oro Group, Nortel is the worldwide leader in carrier VoIP and has maintained that position for the last seven years (2002-2008). Nortel has shipped more than 106 million carrier IP voice and multimedia ports to over 340 carriers globally. Nortel provides VoIP solutions to two thirds of IDC's worldwide listing of top 20 carriers (by revenue).

For more information, visit www.LG-NORTEL.com.

About LG-Nortel

LG-Nortel is a joint venture of LG Electronics and Nortel. Established in 2005, LG-Nortel provides leading edge telecommunications equipment and network solutions, spanning wired and wireless technologies, to service provider and enterprise customers in Korea and around the world. LG-Nortel is also actively developing next generation solutions for global markets, with over 1,000 skilled R&D engineers currently focused on wireless broadband technology evolution and the development of powerful new product lines. For more information on LG-Nortel, visit www.lg-nortel.com.

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. LG-Nortel and the LG-Nortel logo are trademarks of LG-Nortel.

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