March 20, 2007 04:00 ET

Telefonica's Anywhere, Anytime Mobile Attendant Service Powered by Nortel

Communications Delivered by IMS-Ready Mobile Service

MADRID, SPAIN--(CCNMatthews - March 20, 2007) - Telefonica SA, a world leading telecommunications operator, is delivering anywhere, anytime communications in Spain with its Mobile Attendant service. The new service, powered by a Nortel(1) (TSX:NT)(NYSE:NT) IMS-ready solution and providing personalised, reliable and easy-to-use communications for businesses, was introduced by Telefonica at the recent 3GSM World Congress 2007 in Barcelona, Spain.

Telefonica's Mobile Attendant delivers a consistent communications experience between its wireless and wireline networks wherever needed. For example, film crews on location or construction crews in a remote region can receive advanced and personalized communications in a specific location at any time.

Mobile Attendant is one of Telefonica's first steps towards a Fixed Mobile Converged Multimedia Network, offering a more effective communication experience to users across multiple access networks.

"This service is 'Anytime, Anywhere' communication at its best, with voice, video, text and data integrated into one seamless communications environment," said Fernando Valdivielso, vice president Telefonica Global Account, Nortel. "Nortel shares Telefonica's vision of enhancing people's lives with innovative technologies that link fixed and mobile networks together to deliver a converged communications experience."

The Mobile Attendant service gives communications flexibility to mobile phone users through the use of Nortel's PC Communicator software, which manages calls running on regular GSM or 3G phones. Via a simple graphical interface, the service manages simultaneous calls, call transfers, and multi-party conferencing. It can also simultaneously run multimedia sessions from the user's computer including a presence messaging update feature that shows available, busy, or out-of-coverage-area for any of their colleague's GSM or 3G phones.

Telefonica's future plans include adding a Personal Assistant to the Mobile Attendant service with automatic routing capabilities and easy-to-manage call queues. This will allow field-based personnel, workers in temporary offices and highly mobile personnel, such as sales people, to enhance their productivity while using a GSM or 3G phone.

The Telefonica Mobile Attendant service is built around Nortel's Application Server 5200 which seamlessly integrates voice with video, collaboration, presence and reachability services. The new Mobile Attendant service is the second that Telefonica has launched on this platform. The first service was Unified Access, a fixed-mobile VoIP service that has proven its robustness during live operation.

The Mobile Attendant service is part of Telefonica's IMS strategy. As the popularity of Telefonica's new services grows, the intent is to allow interoperability with Telefonica's IMS core and seamless compatibility with existing services, such as presence, instant messaging, and video.

As well as the Application Server 5200, Nortel is also providing its Next Generation Networks and IMS Media Gateway Controller (MGC2000) and the Media Gateway 15000 for connection to the Public Switched Telephone Network.

Nortel's IMS solution is access-aware and supports 3GPP (IMS), 3GPP2 (MMD), Packet Cable 2.0 and TISPAN standards. Nortel is currently engaged with leading operators in wireline, cable, CDMA and GSM/UMTS markets.

Nortel's 4G and IMS-based technologies will be demonstrated in Nortel's booth (# 2663 in Hall B1) at CTIA Wireless 2007 in Orlando, Florida, March 27 - 29.

About Telefonica

Telefonica is one of the largest telecommunications companies in the world in terms of market capitalisation. Its activities are centered mainly on the fixed and mobile telephony businesses with broadband as the key tool for the development of both. The company has a significant presence in 23 countries and a customer base that amounts to more than 200 million accesses around the world. Telefonica has a strong presence in Spain, Europe and Latin America, where the company focuses an important part of its growth strategy. Telefonica Moviles Espana is the mobile operator of Telefonica in the Spanish market. As of December 2006, Telefonica Moviles Espana had more than 21.4 million customers and a wide catalogue of services and applications with the latest mobile technology, such as UMTS. Movistar is the brand for the mobile companies of Telefonica Group in Spain and Latin America with exception of Brazil. For more information, visit Telefonica on the web at

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 For the latest Nortel news, visit

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. Further, actual results or events could differ materially from those contemplated in forward-looking statements as a result of the following
(i) risks and uncertainties relating to Nortel's restatements and related matters including: Nortel's most recent restatement and two previous restatements of its financial statements and related events; the negative impact on Nortel and NNL of their most recent restatement and delay in filing their financial statements and related periodic reports; legal judgments, fines, penalties or settlements, or any substantial regulatory fines or other penalties or sanctions, related to the ongoing regulatory and criminal investigations of Nortel in the U.S. and Canada; any significant pending civil litigation actions not encompassed by Nortel's proposed class action settlement; any substantial cash payment and/or significant dilution of Nortel's existing equity positions resulting from the approval of its proposed class action settlement; any unsuccessful remediation of Nortel's material weaknesses in internal control over financial reporting resulting in an inability to report Nortel's results of operations and financial condition accurately and in a timely manner; the time required to implement Nortel's remedial measures; Nortel's inability to access, in its current form, its shelf registration filed with the United States Securities and Exchange Commission (SEC), and Nortel's below investment grade credit rating and any further adverse effect on its credit rating due to Nortel's restatements of its financial statements; any adverse affect on Nortel's business and market price of its publicly traded securities arising from continuing negative publicity related to Nortel's restatements; Nortel's potential inability to attract or retain the personnel necessary to achieve its business objectives; any breach by Nortel of the continued listing requirements of the NYSE or TSX causing the NYSE and/or the TSX to commence suspension or delisting procedures;
(ii) risks and uncertainties relating to Nortel's business including: yearly and quarterly fluctuations of Nortel's operating results; reduced demand and pricing pressures for its products due to global economic conditions, significant competition, competitive pricing practice, cautious capital spending by customers, increased industry consolidation, rapidly changing technologies, evolving industry standards, frequent new product introductions and short product life cycles, and other trends and industry characteristics affecting the telecommunications industry; the sufficiency of recently announced restructuring actions, including the potential for higher actual costs to be incurred in connection with these restructuring actions compared to the estimated costs of such actions and the ability to achieve the targeted cost savings and reductions of Nortel's unfunded pension liability deficit; any material and adverse affects on Nortel's performance if its expectations regarding market demand for particular products prove to be wrong or because of certain barriers in its efforts to expand internationally; any reduction in Nortel's operating results and any related volatility in the market price of its publicly traded securities arising from any decline in its gross margin, or fluctuations in foreign currency exchange rates; any negative developments associated with Nortel's supply contract and contract manufacturing agreements including as a result of using a sole supplier for key optical networking solutions components, and any defects or errors in Nortel's current or planned products; any negative impact to Nortel of its failure to achieve its business transformation objective; additional valuation allowances for all or a portion of its deferred tax assets; Nortel's failure to protect its intellectual property rights, or any adverse judgments or settlements arising out of disputes regarding intellectual property; changes in regulation of the Internet and/or other aspects of the industry; Nortel's failure to successfully operate or integrate its strategic acquisitions, or failure to consummate or succeed with its strategic alliances; any negative effect of Nortel's failure to evolve adequately its financial and managerial control and reporting systems and processes, manage and grow its business, or create an effective risk management strategy; and
(iii) risks and uncertainties relating to Nortel's liquidity, financing arrangements and capital including: the impact of Nortel's most recent restatement and two previous restatements of its financial statements; any inability of Nortel to manage cash flow fluctuations to fund working capital requirements or achieve its business objectives in a timely manner or obtain additional sources of funding; high levels of debt, limitations on Nortel capitalizing on business opportunities because of support facility covenants, or on obtaining additional secured debt pursuant to the provisions of indentures governing certain of Nortel's public debt issues and the provisions of its support facility; any increase of restricted cash requirements for Nortel if it is unable to secure alternative support for obligations arising from certain normal course business activities, or any inability of Nortel's subsidiaries to provide it with sufficient funding; any negative effect to Nortel of the need to make larger defined benefit plans contributions in the future or exposure to customer credit risks or inability of customers to fulfill payment obligations under customer financing arrangements; any negative impact on Nortel's ability to make future acquisitions, raise capital, issue debt and retain employees arising from stock price volatility and further declines in the market price of Nortel's publicly traded securities, or the share consolidation resulting in a lower total market capitalization or adverse effect on the liquidity of Nortel's common shares. For additional information with respect to certain of these and other factors, see Nortel's Annual Report on Form10-K/A, 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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