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February 24, 2005
sparq Deploys Nortel Solutions to Support Demand for 3G Services in Taiwan
Plans to Provide Island-Wide 3G Data Transmission, xDSL Broadband Data Services
TAIPEI, Taiwan – Taiwanese telecommunications provider sparq has deployed a network solution from Nortel* [NYSE/TSX: NT] for an island-wide data network designed to address increasing business and consumer demand for third generation (3G) voice and data services, as well as to support the aggregation of increasing xDSL traffic.
"This network provides secure, high-quality and truly differentiated services that help sparq enhance the communications experience for subscribers while providing opportunities to grow our data network market," said Shin-Koi Lee, president, sparq. "Nortel's solutions proved to be the best choice for supporting our existing multiservice network bandwidth while also providing outstanding flexibility for expansion to support future services."
The new network supporting Universal Mobile Telecommunications System (UMTS) uses Nortel's Multiservice Switch (MSS) portfolio to significantly lower ongoing network operational expenses through consolidation of disparate networks across a packet core, as well as reducing wireless backhaul costs across Radio Access Networks (RAN) by converging and aggregating voice and data traffic to reduce leased line requirements. Cost reductions are also realized through aggregating xDSL traffic back into the network. sparq also realizes additional cost reductions by aggregating it's growing xDSL access traffic over the same network back into the packet core.
"MSS is an important part of our wireline and wireless data networks product portfolio," said Jackson Wu, managing director, Nortel Taiwan. "Nortel has been the recognized market leader for years in multiservice switching, and now we are taking that expertise from our wireline products and applying the benefits for wireless customers."
"As 3G services gain in popularity, wireless operators will require network solutions that can cost-effectively accommodate the dramatic growth in data services traffic," Wu said. "The sparq deployment further demonstrates Nortel's strengths in building high-performance multiservice networks with the flexibility to support a variety of 3G services and technologies from the access network across the core."
Nortel was the global market share leader in multiservice switching revenue for 15 consecutive quarters as of year-end 2004, according to Synergy Research Group. With more than 45,000 systems shipped to over 1,500 customer networks, Nortel's Multiservice Switching family has proven field experience in delivering carrier-grade reliability and service flexibility for mission critical enterprise and service provider networks worldwide. Nortel's MSS portfolio is deployed with more than 25 major wireless operators and is delivering proven reliability for wireless packet networking solutions across GSM/GPRS/UMTS, TDMA and CDMA/CDMA2000 technologies.
About sparq
sparq (a.k.a. New Century InfoComm Tech. Co., Ltd., NCIC) is a privately owned telecommunication company funded by the Far Eastern Group, SingTel and a consortium of top local enterprises. sparq will provide end users with a variety of telecommunication services based on its advanced technology, innovated services, and focus on quality. sparq was granted approval of it's fixed-line provider application on March 19, 2000, and a Concession License on February 2001 to provide services of leased telephone integration which include broadband application, enterprise portals, Internet protocol virtual private network (IP-VPN), and web hosting.
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 regulatory and criminal investigations and civil litigation actions related to Nortel’s restatements and the impact any resulting legal judgments, settlements, penalties and expenses could have on Nortel’s results of operations, financial condition and liquidity; the findings of Nortel's independent review and implementation of recommended remedial measures; the outcome of the independent review with respect to revenues for specific identified transactions, which review will have a particular emphasis on the underlying conduct that led to the initial recognition of these revenues; the restatement or revisions of Nortel's previously announced or filed financial results and resulting negative publicity; the existence of material weaknesses in Nortel's internal controls over financial reporting; the impact of Nortel's and NNL's failure to timely file their financial statements and related periodic reports, including breach of its support facility and public debt obligations and Nortel's inability to access its shelf registration statement filed with the United States Securities and Exchange Commission ("SEC"); ongoing SEC reviews, which may result in changes to our public filings; the potential delisting or suspension of Nortel's and NNL's publicly traded securities; the impact of management changes, including the termination for cause of Nortel's former CEO, CFO and Controller in April 2004; 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; fluctuations in Nortel's cash flow, level of outstanding debt and current debt ratings; Nortel's ability to recruit and retain qualified employees; 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 flow; the adverse resolution of class actions, litigation in the ordinary course of business, intellectual property disputes and similar matters; 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, which is currently not available, of Nortel's forward 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 Annual Report on Form 10-K and Quarterly Report on Form 10-Q 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. CDMA2000 is a trademark of the Telecommunications Industry Association (TIA).
Contact for Press and Analysts:
Jane Lu
Nortel
886 2 2366 7815
janelu@nortel.com
Ben Roome
Nortel
+44 1628 43 3113
benroome@nortel.com
Bo Gowan
Nortel
(972) 685-8278
bogowan@nortel.com
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