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March 23, 2004
Nortel Networks Submits VoIP E9-1-1 Proposal to Industry Group
Responds to FCC Chairman’s Call for Industry Support
WASHINGTON – In response to a call from the Federal Communications Commission (FCC) for industry support, Nortel Networks* [NYSE/TSX: NT] has submitted a proposal for an architectural framework that will enable Enhanced 9-1-1 (E9-1-1) access on voice over Internet Protocol (VoIP) networks.
Last week at an FCC-hosted Washington forum, FCC Chairman Michael Powell urged the telecommunications industry to make the development of a nationwide VoIP E9-1-1 solution a top priority. Nortel Networks shares Chairman Powell’s views on the importance of reliable E9-1-1 service. Last week, Nortel Networks submitted a detailed proposal to NENA – the National Emergency Number Association – to address key technology challenges. Nortel Networks VoIP E9-1-1 proposal outlines a two-part architectural framework that will enable operators at public safety answering points (PSAPs) to respond to emergency calls and quickly determine the precise location of the caller, much as is done today with traditional telephone networks. The technology for E9-1-1 was originally designed for the traditional circuit-switched telephone network in which the telephones remain at a fixed location. One of the greatest advantages of VoIP is that it eliminates geographic boundaries traditionally associated with voice networks, allowing users to travel around the world while making and receiving phone calls as if they were at home. However, this has created some technical challenges for E9-1-1 services, including the ability to identify the caller’s location when an emergency call is made from a telephone or other device that does not remain fixed. At the heart of Nortel Networks proposal is the coupling of innovative new VoIP interfaces with the field proven E9-1-1 technology deployed in today’s wireless networks. By leveraging already-proven technology, the VoIP E9-1-1 solution may be implemented more seamlessly and cost-effectively. “Nortel Networks is committed to using its expertise in VoIP, wireless and traditional telephone networks to help the industry meet technical and regulatory challenges associated with wide-scale VoIP deployment,” said Sue Spradley, president, Wireline Networks, Nortel Networks. “We hope our VoIP E9-1-1 proposal becomes a useful tool for the industry. We will continue to work diligently to provide technology solutions that resolve other VoIP deployment challenges, particularly those that help ensure social policy objectives are met.” The proposal will be reviewed as part of NENA’s on-going work in the development of short- and long-term solutions for E-911 access. 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 outcome of Nortel Networks independent review and any further restatement of its previously announced or filed financial results; the impact of the inability to meet Nortel Networks filing obligations on credit and support facilities and public debt obligations; the sufficiency of Nortel Networks 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; continued reductions in spending by Nortel Networks customers; fluctuations in Nortel Networks operating results and general industry, economic and market conditions and growth rates; the communication by Nortel Networks auditors of the existence of material weaknesses in internal control; Nortel Networks ability to recruit and retain qualified employees; fluctuations in Nortel Networks cash flow, level of outstanding debt and current debt ratings; Nortel Networks ability to meet the financial covenant in its credit facilities; the use of cash collateral to support Nortel Networks normal course business activities; the dependence on Nortel Networks subsidiaries for funding; the impact of Nortel Networks defined benefit plans and deferred tax assets on results of operations, Nortel Networks cash flows and compliance with its financial covenant; Nortel Networks dependence on new product development and its ability to predict market demand for particular products; Nortel Networks ability to 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; 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; changes in regulation of the Internet; the impact of the credit risks of Nortel Networks customers and the impact of customer financing and commitments; stock market volatility generally and as a result of acceleration of the settlement date or early settlement of our purchase contracts; risks associated with a consolidation of Nortel Networks common shares; the impact of Nortel Networks supply and outsourcing contracts that contain delivery and installation provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; the future success of Nortel Networks strategic alliances; and the adverse resolution of litigation, intellectual property disputes and similar matters. For additional information with respect to certain of these and other factors, see the most recent Form 10-Q/A and Form 10-K/A 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 Business Without Boundaries are trademarks of Nortel Networks. Contact for Press and Analysts:Ann Fuller
Nortel Networks
(613) 768-1208
afuller@nortel.com
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