Telefonica Moviles Group

September 21, 2005 08:59 ET

Telefonica Moviles Mexico Converges Internal Voice, Data Traffic Using Nortel Multiservice Platform to Boost Capacity, Deliver Advanced Services

MEXICO CITY--(CCNMatthews - Sep 21, 2005) -

Telefonica Moviles Mexico, S.A. de C.V, an affiliate of the Telefonica Moviles Group (NYSE:TEM), has deployed a packet voice backbone network from Nortel (NYSE:NT)(TSX:NT) designed to significantly increase internal network capacity and support future delivery of sophisticated mobile data services.

Telefonica Moviles Mexico has moved all of its national and international voice and data traffic onto a single multiservice platform that allows the operator to drive network efficiency and operational savings.

"We know Nortel will provide us optimal service that will allow us to enhance the good operation of our internal communications," said Juan Antonio Azcarraga, director, Communications and Corporate Relations, Telefonica Moviles Mexico.

Nortel's Communication Server (CS) 2000, Multiservice Switch (MSS) 7400 series and Media Gateway (MG) 15000 are being used to converge network traffic and increase network capacity, positioning Telefonica Moviles Mexico to significantly reduce the cost of 'backhauling' voice and data traffic from base stations to switching centers.

"Nortel provides next generation multimedia solutions to operators in Latin America and around the world, helping them to evolve their networks, optimize costs and offer new and sophisticated services that enhance the communications experience of network users," said Alvio Barrios, vice president, Major Accounts, Caribbean and Latin America, Nortel.

Nortel's CS 2000 Superclass Softswitch enables service providers to deliver the full suite of traditional voice services to business and residential customers on a packetized network, with voice and data sharing the same communications lines to provide more efficient and cost-effective use of existing transmission capacity.

Nortel's MSS portfolio is deployed with more than 25 major wireless operators around the world, delivering proven reliability for wireless packet networking solutions across GSM/GPRS/UMTS, TDMA and CDMA/CDMA2000 technologies. MG 15000, built on the MSS platform, is an integral part of Nortel's carrier VoIP solution. It serves as a high density IP trunk gateway for global VoIP applications and can optionally provide multiservice data networking. MG 15000 offers complete carrier-grade options for long distance, local exchange, wireless and cable operators.

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; stock market volatility generally and as a result of acceleration of the settlement date of Nortel's forward purchase contracts; 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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