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March 9, 2005
Nortel Demonstrates OFDM, MIMO at Super High Speeds
Technology to Improve Spectrum Efficiency, Enhance User Experience, Decrease Operator Costs
OTTAWA – Nortel* [NYSE/TSX: NT] has achieved another wireless technology milestone, demonstrating a significant increase in data throughput using beyond 3G (third generation) MIMO (multiple-input, multiple-output) and OFDM (orthogonal frequency division multiplexing).
The demonstration took place at Nortel’s Wireless Technology Lab in Ottawa. Nortel will highlight its 3G MIMO and OFDM success and recent learnings from its lab at CTIA Wireless 2005 in New Orleans (Ernest N. Morial Convention Center, Hall C, Booth #3125) March 14-16. MIMO and OFDM will make it possible for wireless subscribers to download bandwidth-hungry applications – large file transfers, streaming video and mobile gaming – at speeds higher than today’s commercial 3G networks. Nortel has invested in advanced development of OFDM and MIMO for the past six years and has demonstrated the benefits and commercial feasibility of these technologies to more than 100 customers. “Nortel is innovating beyond 3G to develop future wireless broadband technologies that will leverage existing service provider investments and enhance the subscriber experience through feature-rich services and multimedia applications,” said John Hoadley, vice president, Next Generation Wireless Access, Carrier Networks, Nortel. “We believe that OFDM and MIMO will be vital to service provider success and will be the foundation of future wireless broadband networks.” OFDM and MIMO together can support up to two times more subscribers than OFDM alone. This will position service providers to make more efficient use of existing spectrum. In Ottawa, Nortel demonstrated large information transfers with peak data rates at 37 Mbps over a standard 5MHz PCS mobility band, taking into account noise and fading conditions found on a real-world cellular network. The test network showed that with OFDM and MIMO, wireless subscribers can download a 128 MB file in approximately 30 seconds – four to 10 times faster than today’s 3G wireless networks. OFDM is the base radio technology used by WiFi (802.11) and WiMAX (802.16). MIMO is an advanced antenna and space-time processing technology. The first broad deployment of standards-based wireless wide area networks employing OFDM technology is anticipated in 2006 with the introduction of WiMAX 802.16-2004 products. In addition, Nortel is also proposing OFDM/MIMO as its evolution vision beyond HSDPA/HSUPA and CDMA 1xEV-DO into 3GPP and 3GPP2 wireless standards. In 2001, Nortel completed an extensive propagation trial in central London, England, proving the feasibility of MIMO to provide substantial performance gains in an urban deployment. In February 2003, Nortel demonstrated OFDM and MIMO peak data rates of 20 Mbps over a standard 5MHz PCS band. The recent Ottawa demonstration nearly doubled that speed. Nortel is an industry innovator and at the forefront of all broadband access technologies, including wide area cellular, wireline and wireless LAN. In 2004, Nortel’s Wireless Technology Lab in Ottawa filed 62 new patent applications, and 33 previous applications were granted. Nortel is a member of many wireless industry and standards bodies, including the WiMAX Forum, Third Generation Partnership Project (3GPP), 3GPP2, the Cellular Telecommunications & Internet Association (CTIA), IEEE, the Wi-Fi Alliance, and the Wireless Communications Association (WCA). Nortel has designed, installed and launched more than 300 wireless networks in over 70 countries. Nortel was the industry’s first supplier with wireless networks operating in all advanced radio technologies (GSM/GPRS/EDGE, CDMA2000 1X and 1xEV-DO, UMTS and WLAN) and is the only end-to-end provider of all next generation wireless solutions, as well as edge and core network solutions for IP, ATM and optical transport. 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. Contact for Press and Analysts:Jamie Moody
Nortel
(972) 684-7167
moodyjam@nortel.com
Jay Barta
Nortel
(972) 685-2381
jbarta@nortel.com
Ann Fuller
Nortel
(613) 768-1208
afuller@nortel.com
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