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December 17, 2004
Nortel Softswitch Achieves Euro-PacketCable Qualification
Communication Server 2000 Only Qualified Softswitch in Both Europe, North America
GHENT, Belgium – Adding to its success in the cable market, Nortel* [NYSE/TSX: NT] announced that its Communication Server (CS) 2000 has been awarded Euro-PacketCable Call Management Server (CMS) qualification status by the Euro-Cable Certification Board (ECB), a consortium consisting of 12 major European cable operators. With this Euro-Certification Wave 17 milestone, Nortel becomes the only CMS vendor with cable voice over Internet Protocol (VoIP) solutions qualified in both Europe (by ECB) and North America (by CableLabs*).
Euro-PacketCable is the set of procedures for IP-based telephony over cable and builds on the North American PacketCable* standard developed by CableLabs. Built on the industry's highly successful cable modem infrastructure, Euro-PacketCable networks use IP technology to enable a wide range of multimedia services, including IP telephony, multimedia conferencing, interactive gaming, and general multimedia applications. Nortel continues to gain momentum in the cable telephony market with eight new cable VoIP contracts in 2004. The majority of cable operators around the globe who have chosen to deploy VoIP have selected Nortel’s PacketCable- and now Euro-PacketCable-qualified softswitch for their networks. Nortel’s announced cable VoIP deployments in EMEA include TeleCable (Spain), ish and Kabel BW (Germany) and Telenet (Belgium). “The reliability of Nortel’s cable voice over IP solutions has allowed us to generate great success in the global cable market,” said Dan Mondor, general manager, Global Cable Solutions, Nortel. “We have the products, services and operations that allow cable operators to quickly and aggressively bring to market new integrated video, voice and data services. Euro-PacketCable qualification is a significant milestone in Nortel’s cable strategy to deliver proven, interoperable voice over IP solutions that drive innovative cable applications and directly address the fundamental business and networking challenges European cable operators face today.” The ECB’s Euro-PacketCable initiative verifies vendor compliance to interoperable interface specifications for delivering advanced, real-time multimedia services over two-way cable plant. ECB testing addresses areas like Euro-PacketCable multi-vendor interoperability, feature operation, system stability and protocol compliance. EBC testing is conducted by tComLabs, which is a testing, consultancy, and training company located in Ghent, Belgium. Nortel continues to execute on its three commitments to the cable service provider market – new product development geared specifically to cable applications; commitment to the technology and standards organizations that serve the cable industry; and implementation real-world solutions that address the fundamental business and networking challenges of cable operators. Nortel’s CS 2000 achieved PacketCable CMS 1.0 qualification in July, 2003 and PacketCable MGC 1.0 Qualification in April, 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. PacketCable and CableLabs are trademarks of CableLabs. Contact for Press and Analysts:Ben Roome
Nortel
+44 1628 43 3113
benroome@nortel.com
Christie Blake
Nortel
(978) 288-8439
christbl@nortel.com
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