Nortel
NYSE : NT
TSX : NT

Nortel

July 26, 2005 09:00 ET

VIVO Enhances Customer Service with Nortel Next Generation Network Solutions

SAO PAULO, Brazil--(CCNMatthews - Jul 26, 2005) -

Becomes First Brazilian Mobile Operator to Deploy VoIP Technology; Expects to Improve Performance of Call Centers, Reduce Costs

VIVO, the largest wireless operator in the Southern Hemisphere, has deployed a next generation network solution from Nortel (NYSE:NT)(TSX:NT) to enhance the efficiency of its call centers, improve customer service and reduce operational costs.

VIVO is believed to be the first wireless operator in Brazil to implement Voice over IP (VoIP) technology in its network, a move which also helps to prepare for the launch of future mobile data and multimedia services to its customers.

"VIVO is committed to providing more flexible and accessible customer service to all of its subscribers," said Javier Rodrigues, vice president, technology, VIVO. "We selected Nortel based on its proven solutions and expertise in deploying VoIP networks. For VIVO, it was essential to choose a supplier that could deliver a next generation network with the reliability of a traditional voice infrastructure, the flexibility of an IP platform, and security as a priority."

Nortel has integrated VIVO's five major call centers serving customers throughout Brazil with the operator's CDMA2000 1X wireless network using a robust VoIP solution that includes Nortel's Communication Server (CS) 2000 and Media Gateway (MG) 15000. This new platform is designed to allow VIVO to handle customer service requests more efficiently through increased capacity and flexible routing, significantly reducing wait-time and virtually eliminating lost calls. Call center integration has simplified network management, and is expected to help VIVO drive reduced operating costs.

"Once again, VIVO takes the lead in offering superior services to its subscribers," said Rodrigo Abreu, president, Nortel Brazil. "Nortel's leading VoIP solutions are designed to help innovative operators like VIVO to easily upgrade their infrastructure and deliver an enhanced communication experience to their customers by driving efficiency and reliability and providing a platform that will assist them in staying ahead of customer demand and rolling out sophisticated, wireless multimedia services."

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.

The MG 15000, built on Nortel's Multiservice Switch 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. The MG 15000 offers complete carrier-grade options for long distance, local exchange, wireless and cable operators.

Nortel ranked number one in the global markets for service provider softswitches and gateways for the entire year of 2004 and for the first quarter of 2005, according to Synergy Research Group. Nortel is providing VoIP and multimedia solutions to many of the world's leading service providers, including Bell Canada, Charter Communications, Cox Communications, OneConnect, Rogers Communications, SaskTel, Verizon, and VTR in Chile.

About VIVO

VIVO, a joint venture between Telefonica Moviles and Portugal Telecom, is the largest mobile service operator in Southern Hemisphere and tenth largest in the world, with more than 28 million customers in Brazil. The operator is the leader in the consumer segment and also the corporate segment, to which it provides solutions through its VIVO Empresas unit. VIVO's competitive differential is CDMA - the technology that is the basis for the third generation of mobile services worldwide, according to the International Telecommunication Union (ITU)--as well as the footprint and the modern and innovative nature of the voice and data services it provides, like broadband mobile Internet access, video streaming and other kinds of online communications.

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, 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; 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).

Contact Information