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Sky Link Ekaterinburg

Sky Link Ekaterinburg

March 25, 2008 04:00 ET

Sky Link Ekaterinburg Launches Mobile Broadband Services with Nortel Wireless Solution

Ural Region Users Choose From Menu of Mobile Broadband Services Enabled by CDMA EV-DO Rev A Upgrade

EKATERINBURG, RUSSIA--(Marketwire - March 25, 2008) - Sky Link Ekaterinburg, a trademark of Uralwestcom JSC, is providing mobile broadband for users in the Ural region of Russia powered by Nortel(1) (TSX:NT)(NYSE:NT) wireless technology. The Nortel upgrade to Sky Link Ekaterinburg's existing network supports wireless interactive multimedia services and real-time applications such as video telephony, video surveillance and mobile VoIP. Uralwestcom JSC is held by RTDC (Russian Telecommunications Development Corporation), an investment holding company.

Using Nortel's CDMA 1xEV-DO Rev A solution, Sky Link Ekaterinburg can offer reliable mobile broadband coverage to its expanding customer base with a range of applications that include high-speed Internet and broadband business services and video surveilance. Consumers will benefit from faster web browsing including video and two-way file transfer. Businesses can use VPN services for corporate data access and multimedia communications on the go.

"Nortel's 1xEV-DO Rev A solution will enable us to meet growing customer demand for a wide range of broadband real-time wireless services, especially bandwidth-hungry services such as video surveillance and video conferencing," said Valery Molchanov, general director, Sky Link Ekaterinburg, Uralwestcom. "The current project continues our successful cooperation over the past five years with Nortel, whose experience and expertise in mobile technologies have enabled Sky Link Ekaterinburg to take a leading market position with best-in-class broadband coverage and services."

The new CDMA EV-DO Rev A network will support significantly improved speeds of up to 3.1 Mbps for downloading to compatible devices and transmitting of 1.8 Mbps, compared to pre-network upgrade speeds of 2.4 Mbps and 153 Kbps, respectively. These improved capabilities will enable higher speeds for wireless Internet, a wider range of applications and more features for already existing services.

"Sky Link Ekaterinburg, by utilizing Nortel solutions, has already brought an affordable and powerful mobile broadband experience to the citizens of Ekaterinburg, the major city of the Sverdlovsk region. This new solution from the Canadian vendor, based on 3G Mobile broadband EV-DO Rev A technologies, will now further enhance and extend the true broadband experience to provide always-on, seamless connections to business users and consumers of Sky Link Ekaterinburg across the Ural region," said Mr. Stan Cramton, president and CEO, RTDC.

"CDMA EV-DO Rev A is gaining momentum across Russia and Eastern Europe as operators migrate to faster, more advanced and cost-effective mobile technologies," said Sorin Lupu, president Eastern Europe, Nortel. "EV-DO Rev A technology is a key enabler of today's era of Hyperconnectivity, where more and more people and applications want to be connected to the network with a variety of devices. UWC as well other CDMA Rev A customers are very well positioned to leapfrog directly with Nortel to Long Term Evolution, a 4G technology that will support mobile broadband at tens of Mbits per customer, in a very cost effective manner within the next 2 to 3 years."

The Nortel Rev A solution provides operators with improved capabilities to deliver high-speed services and helps to reduce capital and operating costs. It comprises a hardware upgrade of the existing base stations with plug-in "DO Rev A module" (or DOM-A), and software upgrades of the existing network elements - Radio Network Controller (RNC) and Network Manager.

Nortel has more than 12 years experience in deploying CDMA networks for many of the world's leading wireless operators. Nortel has designed, installed and launched more than 350 wireless networks in over 50 countries across the globe. 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 WiMAX). Nortel also has all the elements needed to bring carriers successfully into the 4G world: innovation in WiMAX and LTE, a strong ecosystem, all IP-core, and a deep understanding of what consumer and business users are looking for from their wireless experience. The next evolution beyond Rev A includes LTE (Long Term Evolution) a 4G solution based on OFDM, MIMO technology.

About Sky Link Ekaterinburg (Uralwestcom, a closed joint-stock company)

JSC Uralwestcom was established in 1994 by US West (now held by RTDC and investment holding company) and by two other shareholders - Uraltelecom and YeMTS. Uralwestcom pioneered cellular services in the Sverdlovsk region in 1995 with the first generation NMT 450 network. In 2004, RTDC acquired the 51% shareholding of the operating venture held by Uralsviazinform, becoming the sole shareholder of Uralwestcom. The company provides services under the Sky Link brand.

Uralwestcom is the only holder of an IMT-MC-450 license for the Sverdlovsk region. In 2005, it launched the commercial operation of its IMT-MC-450 network and in 2006 it introduced Sky Turbo services based on EV-DO technology.

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.

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