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July 10, 2002
Nortel Networks Ships GSM EDGE Radio, Base Station Equipment to Cingular Wireless
Technology Expected to Increase Network Capacity, Enable More Efficient Spectrum Use
DALLAS – Nortel Networks* [NYSE/TSX: NT] has shipped its first commercial EDGE (Enhanced Data Rates for GSM Evolution) radio and base station equipment to Cingular Wireless, the second largest wireless carrier in the nation.
Cingular plans to deploy Nortel Networks EDGE solution in several markets – including North Carolina, South Carolina, coastal Georgia, eastern Tennessee and Puerto Rico – as part of an agreement between Nortel Networks and Cingular Wireless announced in March 2002. Nortel Networks EDGE technology will position Cingular to provide additional network capacity, and to make advanced wireless data services available to its growing subscriber base. EDGE is designed to deliver third generation (3G) packet data – up to three times faster than currently available with GPRS – for Web browsing, streaming audio and video, multimedia messaging, location-based services, m-commerce, Virtual Private Networks (VPNs) and other wireless services. "In a continually evolving wireless environment, it is critical to offer customers the most advanced data and voice communications services available," said Bill Clift, chief technology officer, Cingular Wireless. "Our relationship with Nortel Networks positions Cingular to provide these services." "We're pleased to provide equipment and services to Cingular," said Vivian Hudson, general manager, GSM/GPRS/EDGE, Wireless Networks, Nortel Networks. "Nortel Networks is committed to EDGE technology. Nortel Networks EDGE and GSM solutions will allow leading operators like Cingular to provide their suites of services more cost-effectively." In October 2001, Cingular Wireless announced the commercial launch of a GPRS network in the same region using Nortel Networks infrastructure. In September 2001, Nortel Networks was selected to provide an ATM backbone for Cingular Wireless to connect 87 markets throughout the United States. Nortel Networks was also selected to install tandem switching equipment to create networking efficiencies for Cingular Wireless in managing shared network arrangements with other operators. EDGE is an International Telecommunication Union (ITU) approved 3G radio access standard. EDGE allows TDMA and GSM carriers to deploy 3G high-speed data services within existing spectrum allocations, providing an alternative route for GSM operators without access to 3G licenses. Nortel Networks is a founding member of the 3G Americas Association, a new global wireless trade organization focused on the wireless industry in the Americas. In addition, Nortel Networks is a member of the EDGE Operators Forum, a cooperative global industry relationship among major operators and vendors commercially committed to EDGE as part of the GSM evolved solution for 3G service delivery. Nortel Networks has deployed 72 GSM/GPRS networks with operators in 41 countries. Nortel Networks GSM offering also includes Advanced Multi Rate (AMR), a technology designed to increase the number of voice channels per frequency band to provide improved voice quality and spectrum efficiency. Combined with EDGE, AMR can increase the number of voice and data users supported without requiring an increase in radio resources. Nortel Networks is an industry leader and innovator focused on transforming how the world communicates and exchanges information. The company is supplying its service provider and enterprise customers with communications technology and infrastructure to enable value-added IP data, voice and multimedia services spanning Metro and Enterprise Networks, Wireless Networks and Optical Long Haul Networks. As a global company, Nortel Networks does business in more than 150 countries. More information about Nortel Networks can be found on the Web at www.nortelnetworks.com. 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 severity and duration of the industry adjustment; the sufficiency of our restructuring activities, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions; fluctuations in operating results and general industry, economic and market conditions and growth rates; the ability to recruit and retain qualified employees; fluctuations in cash flow, the level of outstanding debt and debt ratings; the ability to meet financial covenants contained in our credit agreements; the ability to make acquisitions and/or 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; 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; the dependence on new product development; the uncertainties of the Internet; the impact of the credit risks of our customers and the impact of increased provision of customer financing and commitments; stock market volatility; the entrance into an increased number of supply, turnkey, and outsourcing contracts which contain delivery, installation, and performance provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; the ability to obtain timely, adequate and reasonably priced component parts from suppliers and internal manufacturing capacity; the future success of our strategic alliances; and the adverse resolution of litigation. For additional information with respect to certain of these and other factors, see the reports filed by Nortel Networks with the United States Securities and Exchange Commission. Unless otherwise required by applicable securities laws, Nortel Networks 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 Networks, the Nortel Networks logo and the Globemark are trademarks of Nortel Networks. Contact for Press and Analysts:Jamie Moody
Nortel Networks
972-684-7167
moodyjam@nortel.com
Jay Barta
Nortel Networks
972-685-2381
jbarta@nortel.com
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