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October 6, 2003
Nortel Networks Secures Wireless Data Network Deal with U.S. Cellular
CDMA2000 1X to Provide Additional Network Capacity, Allow Expansion into New Cities
DALLAS – U.S. Cellular [AMEX: USM] has selected Nortel Networks* [NYSE/TSX: NT] to supply CDMA2000 1X core, radio and wireless access technology and professional services to support expansion of its nationwide third generation (3G) wireless voice and data network.
Under a new multi-year agreement, U.S. Cellular plans to deploy, expand and upgrade CDMA2000 1X radio base stations, switching and other related equipment from Nortel Networks. This will enable U.S. Cellular to expand its footprint into markets acquired from AT&T Wireless earlier this year, including Oklahoma City, St. Louis, Springfield, Mo., and Portland, Maine. Nortel Networks is the sole supplier to these markets. Nortel Networks wireless infrastructure technology will position U.S. Cellular to offer enhanced voice capacity, expanded call coverage, and new data products and services like Internet browsing, e-mail, games, productivity tools, and instant messaging. “Our expansion strategy includes the assurance of a superior network for our customers, while maintaining operating efficiencies,” said Mike Irizarry, executive vice president, engineering and chief technology officer, U.S. Cellular. “We chose Nortel Networks because of its leading wireless infrastructure technology and extensive experience in providing ‘best-in-class’ service and network operations.” “This extends our long-standing relationship with U.S. Cellular, and we are pleased to support its entry into these new markets,” said Steve Slattery, president and general manager, CDMA/TDMA, Wireless Networks, Nortel Networks. “We believe we deliver some of the best wireless networks in the world, so it’s particularly rewarding when customers who know us well continue to choose us as they grow.” CDMA2000 1X is a next generation, ITU-approved, IMT-2000 technology standard designed to double voice capacity, and to support wireless data speeds up to 153 kilobits per second – 10 times the rate available through circuit-based technology – on a single 1.25 megahertz carrier in existing spectrum. Nortel Networks has deployed wireless networking equipment for U.S. Cellular since the mid-1980s. Nortel Networks is implementing CDMA2000 1X for leading service providers around the world, and has designed, installed and launched CDMA networks over varying terrain and population densities for more than 65 operators across 17 countries, including more than 35,000 3G-ready base stations as of August 2003. U.S. Cellular Corporation, the nation’s eighth largest wireless service carrier, provides wireless service to more than 4.3 million customers in 152 markets throughout 26 states. The Chicago-based company operates on a customer satisfaction strategy, meeting customer needs by providing a comprehensive range of wireless products and services, superior customer support and a high-quality network. For more information about U.S. Cellular, visit the company’s Web site at www.uscellular.com.** 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 and continued reductions in spending by our customers; 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 integrate the operations and technologies of acquired businesses in an effective manner; the impact of rapid technological and market change; the impact on our gross margins and other impacts 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 in the telecommunications industry; the dependence on new product development and our ability to predict market demand for particular products; the uncertainties of the Internet; the impact of the credit risks of our customers and the impact of customer financing and commitments; the impact of a consolidation of our common shares; stock market volatility generally and as a result of acceleration of the settlement date or early settlement of our purchase contracts; the entrance into an increased number of supply and outsourcing contracts which contain delivery and installation 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 outcome of our asset and liability review; the future success of our strategic alliances; risks related to our defined benefit plans; the impact of additional valuation allowances for all or a portion of our deferred tax assets required if market conditions further deteriorate or future results of operations are less than expected; an inability of our subsidiaries to provide funding to the respective parent companies; restrictions on our cash as cash collateral if satisfactory arrangements for alternative support for certain obligations are not in place; and the adverse resolution of litigation and intellectual property disputes. For additional information with respect to certain of these and other factors, see the most recent Form 10-Q and Form 10-K 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. **This is a 3rd party link as described in our Web linking practices. Contact for Press and Analysts:Jamie Moody
Nortel Networks
(972) 684-7167
moodyjam@nortel.com
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