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LG Electronics, Nortel Demonstrate ‘Supercharged’ Experience

  • 04 March, 2005 12:29

<p>Complete First Consumer Handset-Based HSDPA ‘Drive’ Calls</p>
<p>CHATEAUFORT, France – Nortel* [NYSE/TSX: NT] and LG Electronics [06657.KS] have completed the industry’s first live test calls using a commercial handset solution for the emerging broadband wireless technology, High Speed Downlink Packet Access (HSDPA).</p>
<p>The companies have demonstrated real-world experiences of ‘supercharged’ broadband services that can help wireless operators generate new revenues through high-resolution interactive gaming, multimedia music downloads, DVD-quality film and video, Mobile TV, ‘push-to-watch’ services, and access to large e-mail attachments.</p>
<p>“Based on the success of our interoperability program, I expect Nortel to be the first to market with a complete, end-to-end HSDPA solution with integrated consumer devices,” said Peter MacKinnon, president, GSM/UMTS, Nortel. “Our recent string of industry firsts and technology milestones continues to prove our leadership in HSDPA and other emerging broadband wireless technologies.”</p>
<p>“LG Electronics is proud to achieve this milestone with Nortel, and to drive the industry forward in delivering true broadband mobile services to end users,” said Skott Ahn, executive vice president, LG Electronics. “This practical demonstration is a big step forward towards the realization of commercial HSDPA services and an important validation of the enhanced performance HSDPA will bring to carriers.”</p>
<p>The companies completed drive calls using commercially-available UMTS network infrastructure from Nortel and an LG HSDPA handset slated for commercial availability in late 2005. Downloads of pop music songs and three-minute streaming movie clips (the LG device served as a modem to a PC screen) were completed in a moving automobile to demonstrate real-world stability at speeds up to 1.4 megabits per second (mbps). By making more efficient use of the existing network and boosting throughput, HSDPA significantly reduces operating costs while delivering a better end user experience. HSDPA boosts network capacity to carry up-to three times as much data traffic and up to twice as many wireless users per cell site compared to today’s UMTS networks. HSDPA speeds network throughput to five times faster than today’s commercial third
generation (3G) networks to deliver broadband services comparable to DSL or ADSL.</p>
<p>Nortel recently announced a series of industry milestones with leading chipset and data card vendors, and is working with a number of global operators, including mmO2, on HSDPA trials and deployments in 2005. Nortel has demonstrated the maximum data speed enabled by HSDPA – 14.4 mbps – on commercially-available equipment including its UMTS Base Transceiver stations and UMTS Radio Network Controller, along with terminals supplied by Ubinetics. Nortel’s equipment is designed to be HSDPA-ready and to cost-effectively upgrade to support HSDPA through a simple software installation.</p>
<p>About LG Electronics, Inc.
LG Electronics, Inc. (Korea Stock Exchange: 06657.KS) is a global force in electronics, information and communications products with 2004 annual sales of US $38 billion (consolidated). With more than 66,000 employees working in 76 subsidiaries in 39 countries around the world, LG Electronics is comprised of four main business companies including Mobile Communications, Digital Appliance, Digital Display, and Digital Media.</p>
<p>LG Electronics Mobile Communications Company is the world’s leading manufacturer of WCDMA (UMTS), CDMA and GSM handsets, and the fastest growing manufacturer of mobile phones worldwide. The company provides a total range of wired and wireless solutions, and is rapidly establishing a global presence as it cultivates international market share in 3G handsets. For more information please visit www.lge.com.</p>
<p>About UbiNetics
UbiNetics is the world leader in the supply of innovative 3G, 2.5G and 2G (WCDMA/GPRS/GSM) IP solutions for chipset and terminal manufacturers, and 3G Test and Measurement equipment. Its experience in wireless technology positions the company at the centre of 3G developments. The company's WCDMA Test Mobiles, used by global 3G infrastructure manufacturers and network operators, position UbiNetics at the centre of WCDMA interoperability testing. Products such as the SystemAT test system for network and service verification and the TM500 Test Mobile, being supplied for early HSDPA trials, further strengthen this position. UbiNetics also provides 2G, 2.5G, 3G and HSDPA protocol software and physical layer IP for use by chipset and handset developers and manufacturers. ODMs can take advantage of UbiNetics' embedded modules
and reference designs for 3G-enabled handsets. Using UbiNetics' considerable experience in deploying multi-mode 3G technology, chip and device manufacturers can de-risk and accelerate their product developments. Since the company was formed in 1999, UbiNetics has grown to over 400 employees with operations in Cambridge, UK, Japan and Hong Kong, with R&amp;D facilities in Swindon, UK, Bangalore, India and Shenzhen, China. Further information about UbiNetics can be found at www.ubinetics.com.</p>
<p>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.</p>
<p>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 forwardlooking statements, whether as a result of new information, future events or otherwise.</p>
<p>-end-</p>
<p>*Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks.</p>
<p>For further information:</p>
<p>Jodie Hoare
Nortel
(02) 8870 5625
jodieho@nortel.com</p>
<p>Guy Lerner
Watterson Marketing Communications
(02) 9437 6122
guy.lerner@watterson.com.au</p>

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