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December 16, 2004
O2, Nortel Demonstrate Next Generation of Broadband Wireless Services
HSDPA Test Calls First Step in Broadband Wireless Network Rollout
LONDON – Nortel* [NYSE/TSX: NT] and mmO2 have successfully completed a series of live wireless calls using an emerging broadband technology – High Speed Downlink Packet Access (HSDPA) – that can deliver dramatically faster and more sophisticated wireless services. O2 plans to deploy Nortel’s solution across portions of its Pan-European wireless network.
Nortel and mmO2 recently completed live wireless test calls demonstrating the capability to offer DVD-quality film and video, high-resolution interactive gaming, multimedia music tracks, ‘push-to-watch’ services and access to large e-mail attachments – all at speeds three times faster than today’s commercial third generation (3G) networks. The test calls were completed as a first phase of planned Nortel deployments across portions of O2’s European UMTS (Universal Mobile Telecommunications System) network. These deployments are subject to execution of definitive binding agreements. “We are looking forward to deploying this broadband technology in Europe, and to delivering a newer and better experience to our business and consumer customers," said Dave Williams, group chief technology officer, mmO2. “Nortel is proving to us their aggressive schedule for delivering HSDPA, and this makes them a very attractive ally for deployments across our Pan-European footprint.” Commercial field trials of the Nortel HSDPA solution begin in the second quarter of 2005 and are expected to include an integrated, commercial data card product. “Nortel has a long history of innovation, and is committed to enhancing the human experience though better and faster technologies like HSDPA,” said Peter MacKinnon, president GSM/UMTS, Nortel. “We will continue to focus heavily on innovation and R&D, and on delivering solutions to help operators easily and cost-effectively add capacity to support the emerging broadband wireless era.” HSDPA is a migration technology for the UMTS wireless standard used by leading wireless operators across Europe, Japan and North America to deliver voice and data services. HSDPA boosts network capacity to carry up to three times as much data traffic and up to twice as many wireless users per cell site compared to today’s UMTS networks. By making more efficient use of the existing network and boosting throughput, HSDPA significantly reduces operating costs while delivering a better end user experience. In the test calls, a five-megabyte music file was downloaded in less than 15 seconds, compared to two minutes over a traditional dial-up connection A 45-megabyte MPEG video file was downloaded in about three minutes, compared to 15 minutes over dial-up. An e-mail with a five-megabyte attachment was downloaded in 20 seconds. “The experience Nortel has gained as a leading global provider of broadband wireless technologies gives us a big advantage in bringing HSDPA to market,” MacKinnon said. “And from a portfolio standpoint, Nortel is in a great position because all of our UMTS equipment in the field can support HSDPA via a simple software upgrade.” Nortel has been demonstrating live HSDPA calls using commercially-available products since June of this year at its Wireless Excellence Center in Chateaufort, France. Live calls were also demonstrated in October for O2, T-Mobile, Vodafone, Orange, Partner, Bouygues and a number of other leading operators at a Nortel customer event in Madrid, Spain. Nortel is also developing advanced technologies such as OFDM and MIMO that are expected to deliver even faster speeds and higher capacity to meet growing demand for data services. About mmO2mmO2 plc has 100 percent ownership of mobile network operators in three countries – the UK, Germany and Ireland – as well as a leading mobile Internet portal business. All of these businesses are branded as ‘O2.’ The company is a founding member of Starmap Mobile Alliance, has operations on the Isle of Man (Manx Telecom) and owns mmO2 Airwave – an advanced, digital emergency communications service. In addition, mmO2 has established the Tesco Mobile and Tchibo Mobilfunk joint venture businesses in the UK and Germany respectively. mmO2 was the first company in the world to launch and rollout a commercial GPRS (or 2.5G) network and has secured third generation mobile telephony (“3G”) licences in the UK, Ireland and Germany. mmO2 has more than 22 million customers and some 13,000 employees. It reported revenues for the year ended 31 March 2004 of £5.646 billion. Data represented nearly 22 percent of total service revenues in the quarter ending 30 September 2004. About Nortel
Nortel is a recognized leader in delivering communications capabilities that enhance the human experience, ignite and power global commerce, and secure and protect the world’s most critical information. Serving both service provider and enterprise customers, Nortel delivers innovative technology solutions encompassing end-to-end broadband, Voice over IP, multimedia services and applications, and wireless broadband designed to help people solve the world’s greatest challenges. Nortel does business in more than 150 countries. For more information, visit Nortel on the Web at www.nortel.com. For the latest Nortel news, visit www.nortel.com/news. 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’s independent review and planned restatement or revisions of its previously announced or filed financial results; the resolution of the accounting issues announced on November 11, 2004, including the outcome of discussions with the United States Securities and Exchange Commission (SEC); the impact of the management changes announced on April 28, 2004 and August 19, 2004; the impact of the inability to meet Nortel’s filing obligations on support facilities and public debt obligations; any potential delisting or suspension of the Company’s or NNL’s securities; the adverse resolution of litigation, investigations, intellectual property disputes and similar matters; the sufficiency of Nortel’s 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’s customers; fluctuations in Nortel’s operating results and general industry, economic and market conditions and growth rates; the communication by Nortel’s auditors of the existence of material weaknesses in internal controls; Nortel’s ability to recruit and retain qualified employees; fluctuations in Nortel’s cash flow, level of outstanding debt and current debt ratings; the use of cash collateral to support Nortel’s normal course business activities; the dependence on Nortel’s subsidiaries for funding; the impact of Nortel’s defined benefit plans and deferred tax assets on results of operations and Nortel’s cash flows; Nortel’s dependence on new product development and its ability to predict market demand for particular products; Nortel’s 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’s 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’s purchase contracts; the impact of Nortel’s 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; and the future success of Nortel’s strategic alliances. 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 with the SEC. Unless otherwise required by applicable securities laws, Nortel 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, the Nortel logo and the Globemark are trademarks of Nortel Networks. Contact for Press and Analysts:
Jay Barta
Nortel
(972) 685-2381
jbarta@nortelnetworks.com
Ben Roome
Nortel
+44 1628 43 3113
benroome@nortelnetworks.com
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