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October 13, 2004
ALLTEL Evolves Network Using Nortel Networks Carrier VoIP Solutions
Network to Support Wireline, Wireless Convergence, Reducing Capital and Operational Expenses
RESEARCH TRIANGLE PARK, N.C. – ALLTEL [NYSE: AT], a service provider with more than 13 million communications customers in 26 states, is using Nortel Networks* [NYSE/TSX: NT] carrier voice over IP (VoIP) local and long-distance solutions for a network migration in select locations across North Carolina and Georgia that is expected to save capital and operational expenses.
“As a long-standing Nortel Networks customer, we’re confident that this solution will position our network to support next generation IP services to meet the future communication requirements of our customers,” said Shannon Leach, vice president, network planning, ALLTEL. “We chose this solution because it gives us a cost-effective, seamless migration path to an advanced voice over IP network.” “To meet the growth in bandwidth occurring in the marketplace today, service providers are leveraging voice over IP to deploy new communications technologies, converge voice and data networks, and curb expenditures,” said Ken Pecot, general manager, Service Provider Voice Networks, Nortel Networks. “Our carrier voice over IP solutions have been developed for service providers around the world to meet this demand and to support multimedia, next generation networks. Nortel Networks voice over IP solutions also allow service providers like ALLTEL to further protect their network investment by providing future opportunity to route wireless traffic over the same packet network.” Nortel Networks Carrier VoIP Solutions can save on infrastructure costs by allowing voice, video and data to be transmitted over a single, high-speed packet network, eliminating the need for separate networks for voice and data. This solution can also enable central office consolidation, which is a key component in delivering capital and operational savings. ALLTEL is currently deploying Nortel Networks Succession* Communication Server (CS) 2000, a superclass softswitch that performs call control processing including centralized service delivery, routing, translation and signaling for switching VoIP calls between packet gateways on ALLTEL’s IP core network. With this solution, ALLTEL can provide the local access, tandem function and long distance services from a single CS 2000. In addition to the CS 2000s, the ALLTEL network will include deployment of Nortel Networks Passport* Packet Voice Gateway (PVG) and Succession Media Gateway 9000. To support this deployment, Nortel Networks is working with ALLTEL to determine the best cost structure for its network in planning, designing and building the network. This deployment with ALLTEL continues Nortel Networks momentum in the strategic carrier voice over IP market. For the entire year 2003 and the first half of 2004, Nortel Networks ranked #1 in the global markets for carrier packet voice and softswitch revenue, according to Synergy Research Group (SRG). Over the past year, Nortel Networks has announced wins with major carriers including Verizon, BellSouth, Bell Canada and Charter Communications in North America; Chungwha Telecom and Dacom in Asia Pacific; Cable & Wireless and Telefonica in the Caribbean and Latin America; and THUS in Europe. As a global innovation leader, Nortel Networks enriches consumer and business communications worldwide by offering converged multimedia networks that eliminate the boundaries among voice, data and video. These networks use innovative packet, wireless, voice and optical technologies and are underpinned by high standards of security and reliability. For both carriers and enterprises, these networks help to drive increased profitability and productivity by reducing costs and enabling new business and consumer services opportunities. Nortel Networks does business in more than 150 countries. For more information, visit Nortel Networks on the Web at www.nortelnetworks.com or www.nortelnetworks.com/media_center. 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 planned restatement or revisions of its previously announced or filed financial results; the impact of the management changes announced on April 28, 2004 and August 19, 2004; the impact of the inability to meet Nortel Networks filing obligations on support facilities and public debt obligations; the sufficiency of Nortel Networks restructuring activities, including the work plan announced on August 19, 2004 as updated on September 30, 2004, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions; cautious or reduced 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 controls; Nortel Networks ability to recruit and retain qualified employees; fluctuations in Nortel Networks cash flow, level of outstanding debt and current debt ratings; 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 and Nortel Networks cash flows; 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 Nortel Networks purchase contracts; 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, investigations, 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, Business Without Boundaries, Passport and Succession are trademarks of Nortel Networks. Contact for Press and Analysts:Christie Blake
Nortel Networks
(978) 288-8439
christbl@nortel.com
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