November 09, 2005 09:00 ET

Nortel Powers IPTV, Video and Advanced Communications for Service Providers; Complete End-to-End Solution Enables New IPTV Communications Functionality

SAN DIEGO--(CCNMatthews - Nov 9, 2005) -

At the TelcoTV conference today in San Diego, Nortel (NYSE:NT)(TSX:NT) has launched an end-to-end IPTV solution designed to help speed the deployment of new IPTV services and enable additional revenue generating opportunities. These services provide competitive differentiation over existing television offerings and have the potential to dramatically change the way people use their TVs for both entertainment and communications.

Nortel's IPTV solution uses a service provider's broadband network to deliver television, video, and other advanced services to subscribers. By integrating Nortel's industry-leading SIP-based multimedia communication technology into the television experience, IPTV subscribers can use their TVs to communicate and interact with their friends and family through a variety of media, such as voice, instant messaging, video, and picture sharing. In addition, Nortel's solution works with wireless devices such as PDAs and cell phones.

"Nortel strives to provide more than a superior IPTV network for our customers. Our goal is to enable new and exciting IPTV applications that give our customers a competitive advantage to win and retain IPTV subscribers," said Walt Megura, general manager, Broadband Networks, Nortel. "By using a Nortel solution with our ecosystem partners, service providers can benefit from a complete solution that has been extensively tested to help ensure high levels of end-to-end reliability, security, and cross-solution management."

Nortel has established a strategic ecosystem of IPTV providers and products to form a complete end-to-end solution. Extensive testing in Nortel's IPTV lab in Ottawa helps ensure that the solution will meet the demanding functionality, reliability and security requirements of service providers. The end-to-end solution, including the underlying high-performance Ultra Broadband access network, will be sold and supported by Nortel, which has proven experience and the extensive professional services required to support the deployment of large service provider networks.

Security and reliability are two items critical to IPTV's success in the carrier environment. As such, Nortel is committed to identifying and addressing security issues, as well as providing superior reliability in its IPTV network designs. Another challenge that IPTV introduces for telco service providers is the complexity of integrating the many new components that are required to acquire, process, and deliver high-quality video services. Nortel is helping customers eliminate this added complexity by providing a single point of contact to manage the entire network build-out, as well as a broad range of professional services geared to removing the risks associated with planning, operating, and managing an IPTV network.

"As telcos move to deploy IPTV services to compete with cable triple-play offerings, network complexity and time-to-market delays are a real obstacle to success," said Matt Davis, director, Broadband Access Technologies, Yankee Group. "Service providers are looking at a variety of integration options, and companies like Nortel can support and speed up the rollout of next generation services by helping them fuse together voice, data and IPTV."

Nortel offers end-to-end IPTV solutions for both the North American (ANSI) and European (ETSI) markets from a variety of best-in-class vendors, and will continue to augment its IPTV portfolio with products designed to provide customers with the best possible solutions.

Nortel's current end-to-end IPTV solution ecosystem includes: IPTV middleware from Minerva Networks and Orca Interactive; video-on-demand (VoD) from Kasenna and BitBand; content security solutions from Irdeto; encoders from Harmonic and Optibase; a Web browser interface from Espial; digital program insertion (DPI) from Terayon; an emergency alert system (EAS) from Trilithic; xDSL modems from Westell; and set-top boxes from Amino.

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, and any related potential dilution of Nortel's common shares; the findings of Nortel's independent review and implementation of recommended remedial measures; the outcome of the ongoing 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 control over financial reporting and the conclusion of Nortel's management and independent auditor that Nortel's internal control over financial reporting is ineffective, which could continue to impact Nortel's ability to report its results of operations and financial condition accurately and in a timely manner; the impact of Nortel's and NNL's failure to timely file their financial statements and related periodic reports, including Nortel's inability to access its shelf registration statement filed with the United States Securities and Exchange Commission (SEC); 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 and December 14, 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; increased consolidation among Nortel's customers and the loss of customers in certain markets; 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 monitoring of the capital markets for opportunities to improve its capital structure and financial flexibility; 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 and consolidation 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; general stock market volatility; negative developments associated with Nortel's supply contracts and contract manufacturing agreements, including as a result of using a sole supplier for a key component of certain optical networks solutions; 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; any undetected product defects, errors or failures; the future success of Nortel's strategic alliances; and certain restrictions on how Nortel and its president and chief executive officer conduct business.

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.

Use of the terms "partner" and "partnership" does not imply a legal partnership between Nortel and any other party.

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