Nortel
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Nortel

March 07, 2007 10:30 ET

TVA Plans Mobile WiMAX Trial in Brazil Powered by Nortel

Supports TVA's Vision to Deliver True Mobile Broadband and Hyper-Connected Communications to Businesses and Consumers

SAO PAULO, BRAZIL--(CCNMatthews - March 7, 2007) - In preparation for future large-scale deployment of wireless broadband access services across Latin America's largest market, TVA, one of the leading pay TV companies in Brazil, is building a WiMAX trial network based on innovative 4G solutions and services from Nortel(1) (TSX:NT)(NYSE:NT).

The two companies announced a trial agreement at a press event held in Sao Paulo today. Nortel's mobile MIMO-powered WiMAX (802.16e) solution will allow carriers like TVA to quickly and cost-effectively deliver true high-speed broadband access, mobile TV and video, VoIP, streaming media, data applications and mobile electronic commerce.

"With 4G/WiMAX, Nortel is changing the economics of the game and positioning carriers to deliver true mobile broadband and a hyper-connected communication experience to businesses and consumers," said Juan Chico, president, Nortel Brazil. "Our trial agreement with TVA will allow us to demonstrate the technology's ability to replicate the user's fixed PC capabilities, such as blogging, video and VoIP, from any location."

Nortel will provide an end-to-end solution including consumer devices, base stations, ASN gateway and professional services for the trial. Testing is scheduled to start in second quarter of 2007 in the city of Sao Paulo on the 2.5 GHz frequency band. Under the agreement, Nortel will provide the equipment and will be responsible for the deployment, support and maintenance of the entire infrastructure for the trial network.

"TVA has been working to maximize use of the Multichannel Multipoint Distribution Service spectrum. The first step was video digitalization, which allows us to offer over 100 channels. Through this trial with Nortel, we can reinforce our efforts to increase our service portfolio moving forward", said Virgilio Amaral, director Strategy and Technology, TVA.

The advantages provided by a WiMAX network are many compared to traditional broadband systems. An example is its flexibility, enabling hybrid connectivity both for wireline and wireless services. Because it does not require fixed lines, deploying a WiMAX network requires one-third the investment of a wired network and improves operator profitability through reduced deployment time, operation and maintenance costs. In addition, WiMAX delivers superior data throughput and mobility, allowing users to stay connected and experience true broadband - even while on the move.

Nortel's 4G WiMAX solution (standard 802.16e) delivers the highest performance in the smallest footprint with the most competitive cost-per-mega-bit in the industry. It is built on a foundation of OFDM-MIMO, a combination of innovative transmission and antenna technologies that maximizes spectrum to deliver the lightning-fast speeds and high bandwidth essential to high-quality mobile video and TV.

About TVA

TVA is the first triple play operator in Brazil, offering home entertainment, information, culture and education to its subscribers through diversified Subscription TV (TVA), broadband Internet (Ajato) and VoIP (TVA Voz) services. Supported by a qualified infrastructure, it distributes its services via Cable (digital and analog) and MMDS (digital and analog) technologies. Today, its product portfolio includes TVA Digital, TVA DVR, TVA HDTV, Portable TVA (Slingbox), Ajato and TVA Voz.

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. 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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