October 19, 2005 09:00 ET

Nortel Solutions Bringing High-Speed Broadband Services to Rural Communities in Northern New York

WATERTOWN, N.Y.--(CCNMatthews - Oct 19, 2005) -

Local Development Authority Works with Service Providers to Extend Broadband to Underserviced Communities

The Development Authority of the North Country (DANC) has deployed a Nortel (NYSE:NT) (TSX:NT) packet-optical solution to bring high-speed broadband communication services to rural communities in northern New York.

Named the Open Access Telecom Network (OATN) of Northern New York, the network is available to service providers on an equal access and open basis, allowing them to extend a variety of services into the region. Multiple regional and national service providers are already using the network to support residential and business broadband service offerings. Wireless operators are also using the network to help provide better wireless service coverage to the region.

Approximately 70 school locations within the region were among the first to benefit from the new broadband capabilities, which are helping to reduce network costs while enhancing distance-learning capabilities. Additionally, New York government agencies are using the network to enable broadband connectivity between offices.

"This high-tech communications infrastructure will provide a solid foundation for economic and employment growth in the region by delivering the communication tools businesses need to be more competitive," said Tom Sauter, deputy director of DANC. "The OATN will also ensure that government, education and healthcare can enhance operational efficiencies and improve services through access to the latest broadband technologies."

"The cooperation from private telecommunications carriers has been a key factor in the successful development and implementation of the network," said Sauter. "The project is a good example of how public and private sectors can work together to overcome the communication challenges of rural areas."

"Nortel is committed to ensuring the current advantages of broadband access in urban centers are also available to rural businesses and residents through technologies that provide affordable services to sparsely populated areas," said Philippe Morin, general manager, Optical Networks, Nortel. "The optical network deployed by DANC is designed to make it possible for a wide range of new broadband services to be more cost effectively deployed to small communities throughout northern New York."

DANC selected Nortel's next-generation packet-optical networking solution to build the high-speed optical backbone in the communities it serves. The OATN optical backbone is based on the Nortel Optical Metro 3500 platform. The Nortel Multiservice Switch 15000 and Ethernet Routing Switch 8600, 5510, 1600 and Ethernet Switch 470 sit at the edge of the network providing the interface into customer sites.

About Development Authority of the North Country

The Development Authority of the North Country is a New York State chartered public benefit corporation. Created in 1985, it was established to address the infrastructure and community development needs of the region. The mission of the Development Authority of the North Country is to service the common interests of Jefferson, Lewis, and St. Lawrence Counties by providing assistance and infrastructure, which will enhance the economic vitality and community development needs of the region and promote the health and well being of its communities. For more information about the Development Authority of the North Country, go to

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 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); ongoing SEC reviews, which may result in changes to Nortel's and NNL's public filings; 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; 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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