Nortel

Nortel

March 15, 2005 08:00 ET

Telstra Utilizes Nortel CDMA2000 1xEV-DO Technology for Commercial Launch of High-Speed Mobile Broadband Service


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: NORTEL

NYSE, TSX SYMBOL: NT

MARCH 15, 2005 - 08:00 ET

Telstra Utilizes Nortel CDMA2000 1xEV-DO Technology
for Commercial Launch of High-Speed Mobile Broadband
Service

SYDNEY, Australia--(CCNMatthews - Mar 15, 2005) -

Offers Mobile Internet, Intranet Access at Broadband Equivalent Speeds

Telstra, Australia's largest telecommunications and information services
company, is the first to deliver mobile broadband to Australians based
on CDMA2000 1xEV-DO (evolution-data optimized) technology from Nortel
(NYSE:NT)(TSX:NT).

Launched in November 2004, Telstra Mobile Broadband provides secure
remote access to the Internet or company networks from mobile devices
such as laptops and PDAs. The launch follows Nortel's initial 1xEV-DO
deployment in the business districts of Australia's capital cities and
major regional centers. The new wireless service delivers broadband
speeds equal to wireline DSL, averaging 300-600 kilobits (Kbps) with
maximums of 2.4 Megabits (Mbps).

Telstra is working with the state government of Victoria to extend the
service into key regional centers. Recently, Victoria's minister for
information and communications, Marsha Thomson, announced that Telstra
will spend a further A$6.5 million (US$5.15 million) to expand the
1xEV-DO network supplied by Nortel.

Telstra is currently focusing on the Australian business community,
providing its Mobile Broadband service through several simple, flexible
and cost-effective plans.

"Early market response has been well above expectation," said Paul
Thomas, Telstra's General Manager of Wireless Data Solutions. "We've had
strong traction in the professional services sector, particularly the
banking industry and companies with a field-based workforce."

Responses to the service were also very positive during a recent
nationwide road show demonstration of Telstra Mobile Broadband to 1,200
Telstra Shop personnel, dealers and retailers who were particularly
impressed by EV-DO's speed and performance.

"Next generation CDMA 2000 1xEV-DO technology has raised the bar for
delivering high-speed wireless data access with the high levels of
security and reliability essential in today's fast-moving and highly
competitive global business environment," said Steve Wood, president,
Australia and New Zealand, Nortel. "As well as offering a better user
experience, 1xEV-DO can help companies and government departments lower
the cost of providing remote access services by serving as an
organization's single remote access solution."

"Security is also easily facilitated," Wood said. "Originally developed
for military applications, CDMA provides a strong platform for security
features. Most enterprises and government agencies already use virtual
private networks (VPNs) to encrypt data traffic and the same VPNs can
now be used with 1xEV-DO, providing additional cost savings."

Nortel has designed, deployed and launched more than 300 wireless
networks in more than 70 countries. Nortel was the first industry
supplier to have wireless networks operating in all advanced radio
technologies (GSM/GPRS/EDGE, CDMA2000 1X and 1xEV-DO, UMTS and WLAN),
and is the only end-to-end supplier of all new-generation wireless
solutions.

About Telstra

Telstra is Australia's largest telecommunications and information
services company, with one of the best-known brands in the country.
Telstra offers a full range of services -- including end-to-end
solutions ranging from broadband, IP, mobile and intelligent network
services, to voice and data network hubs, call centers, and advanced
multimedia and e-commerce applications -- and competes in all
telecommunications markets throughout Australia. Telstra provides more
than 10.3 million Australian fixed line services and has more than eight
million mobile customers, and operates BigPond™, the country's
leading ISP. Telstra's CDMA network now covers more than 1.6 million
square kilometers and more than 98 percent of the Australian population.
During 2004, Telstra's CDMA customer base grew by almost 32 percent.
More information on Telstra is available at www.telstra.com.

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 www.nortel.com. For the latest Nortel news, visit
www.nortel.com/news.

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; 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 controls over
financial reporting; the impact of Nortel's and NNL's failure to timely
file their financial statements and related periodic reports, including
breach of its support facility and public debt obligations and 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 our public filings; the
potential delisting or suspension of Nortel's and NNL's publicly traded
securities; 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,
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; 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 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 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 or early settlement, which is
currently not available, of Nortel's forward purchase contracts; 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; 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. CDMA2000 is a trademark of the Telecommunications Industry
Association (TIA).

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