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October 10, 2002
Nortel Networks, QUALCOMM Complete UMTS Calls Using 1900 MHz Radio Spectrum
Industry First Achieved on Live Spectrum, Commercial Form Factors, UMTS Radio Gear
OTTAWA – Nortel Networks* [NYSE/TSX: NT] and QUALCOMM* Incorporated [Nasdaq: QCOM] have completed the industry’s first UMTS (Universal Mobile Telecommunications System) voice and data calls demonstrating mobility across commercial cell sites using live 1900 MHz radio spectrum, QUALCOMM chipsets in commercial-form-factor handsets, and a live, end-to-end 3GPP (Third Generation Partnership Project) UMTS network from Nortel Networks.
This is significant for North American GSM operators, who have spectrum available at 1900 MHZ but not at 2100 MHz. To date, U.S and Canadian regulatory bodies have not indicated when or if 2100 spectrum – traditionally used for UMTS (or W-CDMA) service elsewhere in the world – will be made available in North America. Nortel Networks and QUALCOMM have demonstrated voice and data services at 1900 MHz with network-based circuit and packet handovers at data speeds of up to 384 kilobits per second (kbps). High-speed data can improve network capacity and quality of service for wireless data applications like multimedia messaging (MMS), e-mail, file transfers, and location-based services, as well as drive a new era of streaming video, video telephony, and other visual wireless services. Migrating to Wireless Data Networks such as UMTS provides a highly cost-effective solution that will help GSM operators meet growing capacity demand and generate new revenues while improving end-user experiences with existing and emerging data services. “The ability to offer UMTS services over the 1900 spectrum provides a very strategic and cost-effective migration option for North American GSM operators,” said Mark Whitton, leader, Technology and Product Strategy, Wireless Networks, Nortel Networks. “This enables them to offer UMTS services without the immediate need for capital investment in 2100 spectrum. As the only provider with proven success in deploying live Wireless Data Networks across all advanced access technologies, Nortel Networks is in a strong position to support 3GPP UMTS requirements for North American operators.” “QUALCOMM is leading W-CDMA development worldwide, and that leadership extends to 1900 MHz for North America,” said Don Schrock, president, QUALCOMM CDMA Technologies. “We are committed to enabling operators in their migration from 2G to 3G technologies, whether it is W-CDMA or CDMA2000.” The MSM6200TM Mobile Station Modem (MSMTM) chipset is QUALCOMM’s second-generation UMTS solution and supports data rates of up to 384 kbps in UMTS mode. The MSM6200 solution supports QUALCOMM’s wireless LaunchpadTM suite of applications and software, encompassing advanced multimedia, connectivity, position location, user interface and removable storage capabilities. Selected components of the Launchpad suite are integrated into all of QUALCOMM’s MSM chipsets based on the market for which each chip is designed. The MSM6200 chipset and system software also support QUALCOMM’s Binary Runtime Environment for WirelessTM (BREWTM) Application Programming Interface (API). With the BREWapiTM, handset manufacturers and developers can develop both embedded and downloadable wireless applications and BREW-based products more quickly and easily. Nortel Networks Univity* portfolio provided 100 percent of the infrastructure equipment used to perform the 1900 UMTS calls, including packet and circuit core platforms from Univity Gateway GPRS Support Node (GGSN) and Univity Serving GPRS Support Node (SGSN). Nortel Networks core networking platforms use common hardware and software across GSM, GPRS and UMTS to provide seamless, cost-effective migration to 3G. UMTS 1900 radio access was enabled by Nortel Networks Univity Internet Base Station Transceiver Station (iBTS) and Univity Radio Network Controller (RNC) products. This milestone is another in a series of accomplishments between Nortel Networks and QUALCOMM. The companies have been working together to enhance and speed market delivery of code division wireless technologies since 1989. In October 2002, the companies completed 3GPP UMTS-compliant 3G-to-2G handover calls. In August 2001, the companies announced the first live CDMA2000 Mobile IP (Internet Protocol) call. These UMTS 1900 calls build on Nortel Networks history of UMTS innovation. Nortel Networks is the first infrastructure vendor to have deployed live networks across all three advanced access technologies – GSM, CDMA2000 and UMTS. Nortel Networks installed the industry’s first pre-commercial UMTS networks, and has completed live 3GPP UMTS voice and data calls on 10 UMTS networks across five countries. In December 2001, Vodafone (Spain) completed the world’s first international 3GPP call – with J-Phone in Japan – using Nortel Networks infrastructure. QUALCOMM Incorporated (www.qualcomm.com**) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company’s CDMA digital technology. Headquartered in San Diego, Calif., QUALCOMM is included in the S&P 500 Index and traded on The Nasdaq Stock Market* under the ticker symbol QCOM. 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 Wireless Networks, Wireline Networks, Enterprise 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, the Globemark and Univity are trademarks of Nortel Networks. QUALCOMM, the QUALCOMM logo, Mobile Station Modem, MSM, MSM6200, Launchpad, Binary Runtime Environment for Wireless, BREW and BREWapi are trademarks of QUALCOMM. The Nasdaq Stock Market is a trademark of Nasdaq. **This is a 3rd party link as described in our Web linking practices. Contact for Press and Analysts:Jay Barta
Nortel Networks
972-685-2381
jbarta@nortel.com
Claire Cranton
Nortel Networks
+ 44 1628 617178
cranton@nortel.com
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