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August 5, 2002
SERCOM Selects Nortel Networks to Deploy 3G Wireless Network in Guatemala
Expected to be First CDMA2000 1X Network in Central America
GUATEMALA CITY, Guatemala – SERCOM, a wholly owned subsidiary of Telecomunicaciones de Guatemala S.A. (Telgua), has selected Nortel Networks* [NYSE/TSX: NT] as the sole supplier for expansion of its existing second generation (2G) digital wireless network in Guatemala, including what is expected to be the first CDMA2000 1X third generation (3G) deployment in Central America.
This expansion is expected to give SERCOM increased network capacity to handle subscriber growth, as well as to evolve the network over time to enable new, revenue-generating services. “We have once again chosen a Nortel Networks wireless solution for our network because it was the best fit for our needs,” said Marvin Par, general director, SERCOM. “Nortel Networks 3G evolution allows us to address the demands for wireless services in Guatemala in the most cost-effective manner by permitting us to leverage our 2G investments.” “Our commitment is to provide our customers with leading-edge wireless solutions that will position them to drive reduced costs and deliver new, revenue-generating services through an ‘always on’ network,” said Vic Cervantes, managing director for Nortel Networks in Mexico and Central America. Under the contract, Nortel Networks will upgrade SERCOM’s core network and provide radio access equipment. Deployment of CDMA2000 1X technology will enable SERCOM to more than triple capacity, as well as provide and manage fixed wireless telephony services. With the promise of packet data services and higher data throughput speeds, CDMA provides a well-defined evolution path from the IS-95 (2G) standard to 3G via CDMA2000 1X and 1xEV. CDMA2000 1X is a next generation, ITU-approved, IMT-2000 (3G) standard technology. A leader in CDMA since 1995, Nortel Networks has designed, installed and commissioned more than 30,000 base stations – over varying terrain and population densities – for 64 operators in 14 countries around the world. Telgua (Telecomunicaciones de Guatemala) is a provider of fixed and wireless services and a range of other telecommunications services in Guatemala. America Movil holds 94.3% of Telgua shares. Sercom is the Telgua Wireless arm that delivers PCS service in Guatemala. 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 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:Ferngene Kook
Nortel Networks
954-858-7101
fkook@nortel.com
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