Nortel

Nortel

March 10, 2005 09:00 ET

TSTT Expands Wireless Network in Trinidad and Tobago with Nortel 3G Solutions


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: NORTEL

NYSE, TSX SYMBOL: NT

MARCH 10, 2005 - 09:00 ET

TSTT Expands Wireless Network in Trinidad and Tobago
with Nortel 3G Solutions

PORT-OF-SPAIN, Trinidad and Tobago--(CCNMatthews - Mar 10, 2005) -

Upgrades with EDGE, R4 Technologies Expected to Reduce Costs, Enable
Advanced Wireless Data Services

Telecommunications Services of Trinidad and Tobago, Limited (TSTT) is
upgrading and expanding its wireless infrastructure with advanced third
generation (3G) wireless solutions from Nortel (NYSE:NT) (TSX:NT). The
project is expected to significantly expand coverage and improve quality
of wireless voice and data services.

Under the terms of an agreement estimated at more than US$50 million
over two years, Nortel will expand and upgrade TSTT's GSM/GPRS wireless
network, deploying both core and access equipment, including base
stations and switching. Nortel will also deploy an EDGE (Enhanced Data
for GSM Evolution) solution from Nortel that will boost capacity for
TSTT, and enable its subscribers to access a range of advanced, wireless
services, including high-speed wireless Internet access, e-mail,
corporate databases, mobile commerce (m-commerce) applications and
multimedia messaging.

"The demand for sophisticated services in Trinidad and Tobago continues
to drive our efforts to offer the most advanced service options to our
subscribers," said Carlos Espinal, chief executive officer of TSTT.
"Nortel has always provided us with industry leading solutions and
support to build the kind of networks that can help us be successful.
Their expertise in the deployment of GSM is critical in this upgrade of
our wireless infrastructure in order to face new competition."

"It's a pleasure to work with such innovative operators like TSTT," said
Kevin Taylor, vice president, Wireless Networks for Nortel in the
Caribbean and Latin America. "The selection of our R4 and EDGE solutions
will enable TSTT to enhance the communication experience of its
subscribers by improving coverage, the overall quality and reliability
of the network, as well as offering those advanced 3G services its
customers are demanding."

The network upgrade also includes the addition of Nortel distributed
Mobile Switching Centre (MSC) technology that builds on the next
generation of 3GPP (Third Generation Partnership Project) Release 4
standards, commonly known as R4.

R4 networks enable more efficient use of transmission capacity. This is
achieved by switching traffic locally at a media gateway removing the
need for backhaul or by the packet transport of already compressed voice
traffic when traffic is not local. Unlike traditional circuit-switched
MSCs, Nortel R4 technology makes use of Call Servers and Media Gateways
that separate the call control software and the physical ports carrying
the voice calls. In addition to lowering the cost of switching and
transporting calls, the Nortel R4 solution will also provide TSTT with
advanced software features that will allow the operator to improve voice
quality for subscribers.

Nortel's R4 solution provides the highest capacity and highest density
wireless packet voice equipment available by leveraging Nortel's five
years experience in Wireline packet voice technology.

EDGE is an International Telecommunication Union (ITU) approved 3G radio
access standard. EDGE is designed to deliver packet data over 400
kilobits per second -- an average of up to three times faster than
currently available on GPRS -- for Web browsing, streaming audio and
video, multimedia messaging, location-based services, m-commerce,
Virtual Private Networks (VPNs) and other wireless services.

Nortel EDGE technology allows GSM operators to offer high-speed data
services to end users, serve more wireless customers, and free up GSM
network capacity to accommodate additional voice traffic. Nortel EDGE
solution is built upon the same powerful Packet Core Network as GPRS. No
changes are needed on the Packet Core Network to benefit from EDGE
improvements. In addition, Nortel EDGE solution improves network
performance with its power amplifier advantage that increases the speed
of downloading data. Nortel EDGE technology also provides larger EDGE
coverage area from the base station transceivers (BTS) with the same
quality of service compared to competitor products.

Nortel has worked with TSTT since the early 1980s. Most recently
(February 2004), Nortel and TSTT announced the deployment of a Voice
over IP network for the delivery of broadband voice, data and multimedia
services. Nortel is the primary provider of wireless solutions for
TSTT's network.

Nortel has designed, installed and launched more than 300 wireless
networks in over 70 countries. 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 WLAN), and is the only
end-to-end provider of all next generation wireless solutions.

About TSTT

Telecommunications Services of Trinidad and Tobago Limited is the sole
licensed provider of telephone services in Trinidad and Tobago. The
company is jointly owned by the Government of Trinidad and Tobago (51%)
and Cable & Wireless (49%). Services provided include basic telephony,
mobile (GSM & TDMA), Internet, lease lines and data services. The
switching and transport infrastructure are both 100% digital. The
transport network comprises primarily fibre optic based systems
supported by microwave radio systems. Key customers include banking and
insurance, petroleum and energy based industries, government and tourism.

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.

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