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Nortel Unveils Fixed, Mobile WiMAX Strategy, New Strategic Relationships

  • 16 September, 2005 12:30

<p>Lightning Fast Wireless Broadband Access ‘Anytime Anywhere’</p>
<p>TORONTO – Nortel* [NYSE/TSX: NT] today announced plans to offer fixed and mobile WiMAX products based on the latest industry standards, and to work with WiMAX leaders Intel and Airspan Networks in bringing these products to market.</p>
<p>These efforts are expected to complement work already underway with the LG-Nortel joint venture. Nortel’s WiMAX products will be designed to allow wireless and wireline carriers, cable providers, media
companies and other ISPs to deliver broadband connectivity to consumer and enterprise users by leveraging existing networks and ‘last mile’ wireless links. They will also complement and extend the reach of existing 3G cellular networks.</p>
<p>WiMAX is a long-range wireless broadband access system that can deliver large amounts of bandwidth very economically. It will give businesses and consumers uninterrupted access to a rich variety of high bandwidth applications like networked gaming, streamed digital music, TV, videoconferencing, and other real-time services.</p>
<p>Fixed WiMAX (IEEE 802.16-2004) is anticipated to operate in the 3.5GHz and 5.8GHz bands of spectrum and to deliver end-user data rates greater than 1 Mbps, comparable to many North American cable
broadband and DSL connections. Mobile WiMAX (IEEE 802.16e) will initially operate in the 2.5GHz band and provide even higher speeds and the added convenience of ‘anytime, anywhere’ access.</p>
<p>“We will be a technology leader in WiMAX, just as we have been with UMTS/HSDPA, CDMA, VoIP and wireless mesh,” said Mark Whitton, vice president and general manager, WiMAX and Wireless Mesh
Networks, Nortel. “Nortel is an expert in all the foundation technologies for both wireless and broadband, something we believe no other company can match.”</p>
<p>“Nortel's WiMAX solutions will be based on our years of experience building practical, profitable, leading-edge networks,” Whitton said. “We're taking the best of what we've learned from our successful cellular, Internet, and voice businesses and combining it to create industry-advancing solutions designed to meet the growing demand for wireless broadband.”</p>
<p>"There is no denying the attraction of having automated broadband connectivity whenever and wherever you
power up your laptop,” said Phil Marshall, vice president, Wireless Mobile Technologies, Yankee Group.
“Promising new technologies often fail, however, for lack of a viable business model or a weak value chain.
Support of major networking companies like Nortel is a strong and positive sign that WiMAX intends to
compete vigorously for its place in the industry."</p>
<p>Nortel is collaborating with Intel to promote deployment of wireless broadband based on WiMAX.</p>
<p>“As WiMAX-Certified products enter the market, cities and regions around the globe are planning for and deploying WiMAX networks,” said Scott Richardson, general manager of Intel’s Broadband Wireless Division. “We are very pleased to be working with market innovators like Nortel to develop and deploy end-to-end mobile broadband solutions for both businesses and individuals around the world.”</p>
<p>Nortel will work with Airspan Networks to market and evolve WiMAX solutions in the higher frequency bands for implementations that do not require full mobility. These solutions will also be used to eliminate the need for expensive wired T1/E1 or DSL circuits for wireless backhaul, creating a simpler path to profitability for service providers.</p>
<p>“We are combining Nortel’s wireless and mesh technology leadership and ability to execute large network build-outs with Airspan’s market-proven WiMAX portfolio to provide high-speed access for people living in areas where access via cable or DSL may not be available,” Whitton said. “Beyond that, Nortel will build on its key intellectual property and standards contributions in OFDM, MIMO, and wireless mesh networking to deliver mobile WiMAX products in time for trials in mid 2006. The key to an operator’s success in WiMAX will be the real-world implementation of networks, an area where Nortel has vast experience and the resources to back it up.”</p>
<p>"Interest in our WiMAX portfolio is at a high level and continues to grow,” said Eric Stonestrom, president and chief executive officer, Airspan Networks. “We are very pleased that Nortel, a recognized leader in wireline and wireless technologies, has chosen to add our WiMAX solutions to its product line. Nortel is already a leading supplier of switching and mobility products to many of the world’s largest carriers, and together we can bring truly innovative access solutions to service providers across the globe.”</p>
<p>Nortel’s optical backhaul technology, data networking solutions, and full suite of wireless services will be integrated with Airspan’s WiMAX base transceiver stations (BTS) and subscriber terminals (ST).</p>
<p>Nortel will work in the development of WiMAX/WiBro solutions based on the 802.16e standard though the LGNortel joint venture. Nortel’s fixed WiMAX solutions are expected to be commercially available in Q1 2006.
Nortel’s WiBro solutions are scheduled for commercial availability following the 2005 field trial deployment in Asia with the LG-Nortel joint venture, with additional mobile WiMAX solutions set to be commercially available following the 2006 trials in North America.</p>
<p>Nortel has contributed to the 802.16 standard by helping to develop underlying technologies like OFDM and MIMO for more than six years, and holds several key patents in these areas. In March 2004, Nortel
completed a MIMO/OFDM lab demonstration of large data transfers with peak data rates at 37 Mbps over a standard 5MHz PCS band under conditions found on real-world cellular networks. Nortel is a member of the WiMAX Forum, an industry-led organization that promotes interoperability and certification of broadband wireless products for delivery of faster, more affordable data, voice and video services to businesses and consumers.</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, 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 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); ongoing SEC reviews, which may result in changes to Nortel’s and NNL’s public filings; 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 itsability 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; stock market volatility generally and as a result of acceleration of the settlement date of Nortel’s forward purchase contracts; 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; 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.</p>
<p>-end-</p>
<p>*Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks.</p>
<p>For further information:</p>
<p>Elizabeth Lovett
Nortel
(02) 8870 5625
elovett@nortel.com</p>
<p>Guy Lerner
Watterson Marketing Communications
(02) 9437 6122
guy.lerner@watterson.com.au</p>

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