Nortel Enables New Rural Market SIP Access Solutions


Leverages Interoperability with Allied Telesyn and Pannaway Technologies

www.nortel.com

TORONTO, Feb. 6 -- Nortel(x) (NYSE/TSX: NT) is helping rural carriers tap into the lucrative triple play services market by enabling new SIP fiber to the home (FTTH) and converged IP access solutions that help carriers deliver broadband data, video and a rich set of voice features to residential and business customers.

These solutions are enabled by Nortel's DMS-10 softswitch interoperating with products from Allied Telesyn and Pannaway Technologies. This gives rural carriers access to a new portfolio of revenue-generating services such as VoIP with E 911 lifeline calling, enhanced IP video and video on demand, ultimately increasing customer satisfaction and retention.

SkyLine Membership Corporation, which serves northwestern North Carolina and eastern Tennessee, is using the SIP FTTH solution consisting of Allied Telesyn's iMAP integrated Multiservice Access Platform and iMG intelligent Multiservice Gateway interoperating with Nortel's DMS-10 as part of its recently announced FTTH network deployment. This new FTTH infrastructure, using Allied Telesyn's IP Triple Play optimized Multiservice Gateways, will enable SkyLine to offer advanced IP video to its largely residential subscriber base, in addition to a wide variety of voice and high-speed data services.

"SkyLine has evolved with the communities we serve, taking the lead in identifying customer needs and offering innovative solutions - our fiber to the home initiative is a perfect example of this evolution," said John Dixon, SkyLine CEO. "Interoperability between Nortel and Allied Telesyn allows us to offer our customers new bundles of digital entertainment, voice, communication and information services with confidence, knowing that we can reliably provide our customers with the communications choices they need."

Empire Telephone will use the converged IP access solution consisting of Pannaway's Service Convergence Network (SCN(TM)) platform interoperating with Nortel's DMS-10 to offer IP video services, high-speed data and Primary Line VoIP with advanced calling features and guaranteed E 911 support to their customer base in 2006. Empire Telephone supports 8,400 access lines and covers over 320 square miles of service territory in western New York.

"As we evolve to VoIP, it is absolutely critical that we have the ability to provide advanced calling and safety features such as E911 lifeline support as well as new applications we can run on an application server. Interoperability between Nortel's DMS-10 and Pannaway's SCN will allow us to offer premier video and data services along with support for emerging applications such as HDTV and video on demand," Joseph Gottwald, CO engineer and ISP manager, Empire Telephone.

Allied Telesyn's iMG600 intelligent Multiservice Gateway portfolio and Pannaway's Personal Branch Gateway (PBG) and Broadband Access Switch (BAS) successfully completed interoperability testing with Nortel's SIP-enabled DMS-10.

Nortel's DMS-10 platform is the industry's most widely deployed voice switch, allowing independent service providers and rural market carriers to seamlessly advance their networks to a new cost-effective packet infrastructure at their own pace without expensive upgrades to the network. SIP-enabled enhancements on the DMS-10 gives service providers the ability to offer new revenue generating services such as primary or secondary line service over any broadband facility, mobility options with IP phones and clients, as well as service bundles such as VoIP coupled with the subscriber's existing broadband or long distance service.

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 nortel.com/news.

(x)Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks.

CONTACT: Christie Blake, (978) 288-8439, christbl@nortel.com

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