Wireless Access Solutions expand network capacity/coverage.

Press Release Summary:

Featuring microcellular coverage range, wall-mountable BTS 3030 has zero footprint that can be used to address demands of capacity hot spots or fill coverage holes. Product minimizes number of BTS required to cope with increasing network usage. Scalable CDMA radio module, MFRM3, boosts capacity in existing Indoor Metro Cell and Compact Metro Cell Outdoor base stations. Both products allow operators to manage growing subscriber demand and roll-out 3G services to end users.

Original Press Release:

Nortel's New Wireless Access Solutions Stretch Network Capacity, Coverage

New CDMA Solutions Lower Operating Costs, Support Advanced Wireless Services

LAS VEGAS, April 5 -- Nortel(x) (NYSE/TSX: NT) has further broadened its wireless access portfolio by introducing new and enhanced products designed to maximize operators' existing investments to deliver increased network capacity and coverage capabilities.

The CDMA portfolio enhancements are designed to allow operators to manage growing subscriber demand and swiftly roll-out out advanced 3G services to end users.

"Nortel's CDMA base stations will help provide operators with greater cost efficiencies and competitive advantage," said Doug Wolff, vice president and general manager, CDMA, Nortel. "Today's product introductions strengthen our CDMA portfolio and equip our CDMA customers with a complete range of coverage and capacity needs from urban and suburban to rural and in-building."

Nortel's new BTS 3030, boasting industry-leading capacity and microcellular coverage range in an easy to install, wall-mountable package. The BTS 3030 is a small, light weight "zero footprint" BTS which can address the demands of capacity hot spots or filling coverage holes. In addition, this Micro BTS can more easily be deployed in areas where space for a Macro BTS is more difficult to find, and minimizes the number of BTS required to cope with increasing network usage.

The BTS 3030 offers a reduced level of power consumption because of Nortel's advanced radio technology. In addition, the BTS 3030 makes an excellent solution for deployments in urban, suburban, and rural markets due to its light weight, small size, and a significantly reduced installation time. The BTS 3030 can potentially save operators up to 50 percent in floor space and reduce installation costs by approximately 75 percent, according to Nortel estimates.

Nortel is also introducing a new CDMA radio module, the MFRM3, which provides greater carrier density, power consumption efficiency, and new advanced features that support improved network performance. The MFRM3 is the enabler for all of Nortel's latest CDMA base station enhancements. It enables four times the capacity in the existing Indoor Metro Cell and twice the capacity in the existing Compact Metro Cell Outdoor base station. In addition, Nortel's new Compact Metro Cell Outdoor Enhanced (CMO-E) has also been improved with dual band support, allowing operators to support any two frequency bands.

The MFRM3 modular design continues Nortel's investment-protection strategy for operators that have been in existence since the introduction of the Metro Cell portfolio over seven years ago, a CAPEX advantage over many of our competitors.

To further augment the access portfolio, Nortel has teamed with LGC Wireless to provide an in-building CDMA wireless solution which is designed to enable operators to offer a high-quality communication experience to subscribers, regardless of location. Nortel has also signed an agreement with Axerra Networks to provide a more cost effective, scalable IP backhaul solution designed to allow operators to deliver bandwidth-hungry 3G applications.

Nortel's BTS 3030 is expected to be commercially available in second quarter 2006, the MFRM3 in first quarter of 2007 and the CMO-E at the end of 2006. These new solutions will support CDMA 1X, EV-DO and CDMA 1X EV-DO Revision A services.

Nortel's CDMA solutions will be demonstrated at CTIA Wireless 2006 in Las Vegas (Las Vegas Convention Center, Hall C, Booth No. 1835) April 5-7.

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 nortel.com/news.

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

CONTACT: Jamie Moody, (972) 684-7167, moodyjam@nortel.com; Pat Cooper, (425) 450-7523, pat.cooper@nortel.com; Camille Beasley, (214) 665-1331, camille_beasley@lpp.com

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