March 27, 2007 08:01 ET

Wind Telecom Chooses Nortel to Deploy WiMAX Network in Dominican Republic

Operator to Offer Mobile Broadband Service in Four Key Metropolitan Areas

SANTO DOMINGO, DOMINICAN REPUBLIC--(CCNMatthews - March 27, 2007) - Wind Telecom, a new network operator in the Dominican Republic, and Nortel(1) (TSX:NT)(NYSE:NT) have signed a Letter of Agreement expressing their firm commitment to deploy a wireless broadband network based on Nortel WiMAX technology. Wind Telecom intends to offer high-speed broadband services to urban and rural customers across the country.

The network is expected to be commercially available in September 2007 in the initial launch cities of Santo Domingo, Santiago, Puerto Plata and Bavaro/Punta Cana, with other areas such as La Romana, projected for the near future. Nationwide coverage will be reached incrementally over the next few years. The award of the contract is subject to the execution of a final, legally binding agreement.

Wind Telecom will use Nortel's MIMO-powered WiMAX innovations to deliver services such as VoIP, video-streaming and mobile broadband, which are expected to help bridge the digital divide in the Dominican Republic where broadband services have been limited. Subscribers will be able to benefit from the wealth of information and economic advantages such as e-commerce that are accessible through the use of advanced technologies.

"Wind Telecom is striving to make affordable broadband services available to the mass market in the Dominican Republic, where the adoption of these services has been slow due to high prices, limited availability and insufficient competition. We will be a full service provider of voice, data, and video services," said Manuel Bonilla, CEO, Wind Telecom. "Nortel's WiMAX solution allows us to achieve the goal of affordable broadband for both business and individual consumers, without the complexities of building a wired network. This makes it especially well suited to historical cities like Santo Domingo where the inner-city is dense with buildings, as well as for sub-urban and rural services."

"Wind Telecom firmly believes in the future of the Dominican Republic. The investment environment favors competition and innovation, allowing a greenfield operator with leading-edge disruptive technology to enter the market and become a prime competitor," said Jose Clase, chairman of the board of Wind Telecom. "Our company has the unique opportunity of significantly contributing to the development of the Dominican Republic while at the same time creating a prosperous telecom business."

"With this end-to-end solution, Wind Telecom will become one of the first wireless broadband operators in the Dominican Republic to support fixed, portable, and mobile services," said Peter MacKinnon, general manager of WiMAX, Nortel. "With its high-bandwidth capabilities, minimal infrastructure requirements and one of the lowest costs per megabit in the industry, Nortel's WiMAX solution will help Wind Telecom position itself as a premium network operator."

The network will be an end-to-end solution for Wind Telecom, including consumer devices, mobile WiMAX base stations, ASN gateway, business support system (BSS) and operational support system (OSS) platforms as well as professional services such as training. All proposed base stations will be operating in the 2.5GHz frequency band. As well as supplying the equipment, Nortel is to be responsible for the deployment, support and maintenance of Wind Telecom's entire network.

Nortel's 4G WiMAX solution (standard 802.16e) delivers one of the highest performances in the smallest footprint with one of the most competitive costs per megabit 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 Wind Telecom, S.A.

Wind Telecom is a company headquartered in Santo Domingo, Dominican Republic, and it is fully funded by a group of Dominican and international investors. The company will deploy broadband networks to complement and compete in the telecommunications market of the Dominican Republic, with the technological support of Nortel. Wind Telecom owns 200 Mhz of spectrum in the 2.5 Ghz band and therefore has the capability to deploy a nationwide WiMAX network and become a significant contributor to the Dominican telecommunications community.

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 For the latest Nortel news, visit

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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