October 26, 2005 11:14 ET

VIVO Pioneers 3G in Brazil with Nortel Wireless Broadband Solutions

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

CDMA2000 1X, EV-DO, Wireless Softswitching Technology to Increase Network Capacity, Deliver Voice, High-Speed Data Services

VIVO, the largest mobile operator in the South Hemisphere, has expanded its 3G wireless broadband network in the North, South, and Center-West regions of Brazil using solutions from Nortel (NYSE:NT) (TSX:NT).

VIVO has deployed Nortel CDMA2000 1X and 1xEV-DO wireless broadband solutions designed to allow VIVO to deliver high-speed advanced voice, video and multimedia data services like Web browsing, streaming audio and video, multimedia messaging, wireless gaming, and VPNs.

VIVO has also deployed a Nortel CDMA Packet MSC wireless softswitching solution designed to improve the quality of voice services and reduce costs associated with voice transport by migrating circuit-based voice traffic to high-speed packet for more efficient IP routing. This solution also lays the foundation for future, real-time multimedia services delivery using the IP Multimedia Subsystem (IMS) standard.

"VIVO strives to ensure its subscribers have access to the world's most advanced wireless voice and data services for both business and personal use," said Javier Rodriguez, vice president, Technology, VIVO. "We are making mobile telephony history in Brazil. For example in July of this year, we started transmitting TV over mobile handsets. Through our relationship with Nortel, VIVO can rely on a depth of experience in advanced technologies that will help us deliver cost-effective services with the flexibility to meet future demand."

"Nortel is helping VIVO to launch a new era of mobile communications in Brazil," said Rodrigo Abreu, president, Nortel Brazil. "Our CDMA wireless infrastructure solutions are designed to boost network capacity, create efficiencies that can help reduce operating costs, and help deliver advanced voice and data services that subscribers desire."

Nortel supplies EV-DO equipment to 13 of the 22 operators across the globe currently offering commercial EV-DO service. Nortel CDMA equipment is designed to support EV-DO through simple upgrades to existing hardware.

Nortel's CDMA Packet MSC is a proven, turnkey, packet-based wireless switching solution that helps operators to gracefully transition to an all IP network capable of offering simultaneous voice, video and data 'anytime, anywhere.' Nortel's Packet MSC combines the company's leadership and expertise in both CDMA and VoIP technology to deliver a best-in-class wireless IP solution to operators.

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 and is the only end-to-end provider of all next generation wireless solutions.

About VIVO

VIVO, a joint venture between Telefonica Moviles and Portugal Telecom, is the largest mobile service provider in the Southern Hemisphere and the tenth largest in the world, with more than 28 million subscribers. The company is the leader in both the consumer and the corporate segment, to which it provides solutions through its VIVO Enterprise business 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. For more information on VIVO, visit the company's Web site at

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 For the latest Nortel news, visit

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; general stock market volatility; 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; any undetected product defects, errors or failures; 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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