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Nortel Networks

Nortel Drives Beyond 3G With HSOPA in 3GPP Standard

Barcelona, Spain (ots/PRNewswire)

- OFDM, MIMO Prototype Provides Converged Path for Long Term
Evolution of Broadband Wireless
As part of the 3rd Generation Partnership Project (3GPP) for the
Long Term Evolution (LTE) of wireless network standards, Nortel has
achieved approval for the introduction of high speed OFDM and MIMO
packet access, in line with its technology HSOPA.
For end users, HSOPA/LTE is expected to allow wireless operators
to offer true 'quadruple play' services: voice, high-speed
interactive applications including large data transfer and
feature-rich IPTV with full mobility.
Nortel's strategy is designed to bring some of the key advantages
of OFDM and MIMO technologies into all broadband wireless systems.
This technology was already introduced in WiMAX and has now been
introduced in the evolution path for UMTS/HSDPA networks for
potential delivery in 2008. The introduction of OFDM and MIMO into
the 3GPP standards for wireless LTE was agreed in December 2005.
"With seven years of experience in OFDM and MIMO technology and
many technology innovations, Nortel is one of the leaders of 3GPP LTE
standardization and is sharing its wide expertise across different
next- generation standards," said Jean-Luc Jezouin, vice president
GSM & UMTS Products, Nortel. "Just a year ago HSOPA seemed too
visionary for most companies but today at the 3GSM World Congress our
initial vision is being shared by most industry players and
operators."
Nortel has invested in developing OFDM and MIMO since 1998,
demonstrating its commercial benefits and feasibility to more than
100 customers worldwide.
In addition, HSOPA/LTE has the potential to increase ten-fold the
number of users that can be served by an operator's network. Nortel
estimates that by using HSOPA/LTE technology the cost per megabyte to
the operator could be as low as one twentieth of the cost associated
with UMTS.
In 2006, Nortel expects to deliver an HSOPA/LTE laboratory
prototype solution that can provide up to 25 Megabits per second
uplink in the 5MHz spectrum - at least 15 times faster than today's
fastest mobile connectivity. Nortel's original OFDM-MIMO laboratory
prototype, demonstrated in 2004, delivered 37Mbps in downlink in the
same bandwidth. These two advances mean that Nortel anticipates
beginning customer HSOPA/LTE trials in 2007.
Nortel aims to demonstrate that UMTS operators can evolve to
HSOPA/LTE with minimal additional investment. On the radio access
side, Nortel's Base Transceiver Station (BTS) platforms enable a
smooth evolution to HSOPA as well as supporting GSM, UMTS, HSDPA,
HSUPA and HSOPA/LTE.
By 2008, HSOPA/LTE would also benefit from the expected evolution
of the converged core network. This converged core would terminate
traffic from any fixed or wireless access technology to provide
greater service continuity, improved quality of service and embedded
security.
About Nortel
Nortel (NYSE: NT ; TSX: NT) 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, Jamie Moody, Tel:
+1-972-684-7167, moodyjam@nortel.com

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