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Nortel Networks

Nortel Enhances End-User Experience With Improved GSM/UMTS Coverage

Paris (ots/PRNewswire)

- Solutions Aimed at Improving 2G/3G Services in Buildings, Towns,
Remote Areas
Nortel(x) (NYSE: NT ; TSX: NT) has announced new wireless
solutions aimed  at helping operators improve GSM, UMTS and HSDPA
broadband mobile coverage in buildings, towns and remote areas. In
addition, Nortel is introducing solutions designed to improve
flexibility for deploying mobile broadband base transceiver stations
(BTS) in space-constrained locations. These solutions are expected to
be showcased at 3GSM World Congress 2006, Barcelona, Spain.
"Consumers want the feature-rich services offered by UMTS and
HSDPA such as mobile TV, video calling and data communication to be
available wherever they are, in particular indoors," says Jean-Luc
Jezouin, vice president GSM&UMTS Products, Nortel. "This is why we
are announcing new approaches to improved coverage, including
providing new in-building base stations and driving the use of 900MHz
spectrum."
Nortel is introducing new Pico BTS, Micro BTS, Remote Radio Head
(RRH) with companion digital BTS, and compact Macro BTS for UMTS and
HSDPA networks. These solutions are designed to allow operators to
increase their coverage and traffic to meet subscriber demand for
wireless; and only require a software upgrade to support HSUPA in the
beginning of 2007, continuing with Nortel's unmatched track-record of
software upgradeable base stations.
Nortel's new UMTS Pico BTS 1010 is a lightweight and compact
indoor solution created to enable mobile phone users to experience
the same service indoors as outdoors. The new Pico BTS, with ATM or
IP backhaul, has enough capacity for corporate use and is
cost-effective for providing public coverage in moderate traffic
areas.
Nortel is also enriching its GSM portfolio with a Pico BTS for
indoor  applications. Both GSM and UMTS Pico BTS are ideal for
reliable and quick  in-building coverage enhancement.
Nortel's new UMTS Micro BTS 1120 is a small "zero footprint" BTS
which can address the demands of capacity hot spots or filling macro
coverage holes. This Micro BTS can easily be deployed in areas where
space for a Macro BTS is more difficult to find, and satisfies a need
for higher numbers of base stations to cope with increasing network
usage.
The new Nortel RRH (Remote Radio Head) solution provides operators
with a means of overcoming site constraints and speeding network
deployment, as well as dense indoor coverage such as malls,
conference centres, or campuses. This solution, supporting a Common
Public Radio Interface architecture, uses optical fibre to connect
the RRH with a digital BTS located elsewhere - typically in-building.
In order to meet a wide range of deployment and capacity scenarios
the digital BTS can be standalone, outdoor or indoor, or housed
inside the user space of a legacy BTS. The RRH outdoor solution helps
protect existing site investment and ensure the cost-effective
deployment of new sites. Nortel estimates a typical 80 per cent
saving in site civil works and up to a 50 per cent annual OPEX
reduction for each RRH site deployed. The RRH, used with indoor
distributed antenna systems, can also provide indoor coverage.
Nortel's new BTS 6000 is the most compact Macro BTS designed for
reducing cost of site ownership without compromising radio
performance. Using highly integrated technology modules, already
successfully deployed in the Nortel GSM/UMTS Combo BTS 18000, the
unit accommodates six GSM or three UMTS/HSDPA full power multicarrier
radios in a compact indoor or outdoor cabinet.
This offering complements Nortel's first to market GSM/UMTS Combo
BTS 18000, which has already proven its ability to speed up UMTS
roll-out for operators with legacy GSM networks. Thousands of BTS
18000's have been deployed worldwide.
Driving UMTS 900
In addition to new product introductions, Nortel and its customers
have been championing, in 3GPP and regulatory bodies, the approval of
900MHz spectrum to be used for UMTS and HSPA services. Nortel aims to
encourage countries to license 900MHz for UMTS services by
highlighting the practical benefits it could bring, particularly in
terms of broadband access roll out to less densely populated areas.
The use by operators of 900MHz spectrum for UMTS will improve
in-building penetration by up to 25% compared to 2100MHz spectrum.
The 900MHz band will also allow operators to cost-effectively deploy
nationwide high-speed wireless services, reducing the number of sites
by up to 60% compared with 2100 MHz in rural areas. Finally, Nortel's
UMTS900 BTS can reuse existing GSM900 sites to provide a similar
coverage area, thus avoiding the need to acquire new sites. Nortel's
900MHz UMTS and HSDPA capability will be showcased at 3GSM World
Congress by Orange and Nortel's technology partner Qualcomm.
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. Our next-generation technologies, for both service
providers and enterprises, span access and core networks, support
multimedia and business-critical applications, and help eliminate
today's barriers to efficiency, speed and performance by simplifying
networks and connecting people with information. 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, and any related potential dilution of
Nortel's common shares; the findings of Nortel's independent review
and implementation of recommended remedial measures; the outcome of
the ongoing 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
control over financial reporting and the conclusion of Nortel's
management and independent auditor that Nortel's internal control
over financial reporting is ineffective, which could continue to
impact Nortel's ability to report its results of operations and
financial condition accurately and in a timely manner; the impact of
Nortel's and NNL's failure to timely file their financial statements
and related periodic reports, including Nortel's inability to access
its shelf registration statement filed with the United States
Securities and Exchange Commission (SEC); 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 and December 14, 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;
increased consolidation among Nortel's customers and the loss of
customers in certain markets; 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 monitoring of the
capital markets for opportunities to improve its capital  structure
and financial flexibility; 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 and consolidation 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; general stock market volatility; negative developments
associated with Nortel's supply contracts and contract manufacturing
agreements, including as a result of using a sole supplier for a key
component of certain optical networks solutions; 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; any
undetected product defects, errors or failures; the future success of
Nortel's strategic alliances; and certain restrictions on how Nortel
and its president and chief executive officer conduct business. 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.
(x)Nortel, the Nortel logo and the Globemark are trademarks of
Nortel Networks.
www.nortel.com

Contact:

Ben Roome, Tel: +44-1628-433113, benroome@nortel.com, Isabelle
Tadmoury, Tel: +33-1695-51291, tadmoury@nortel.com

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