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(NT.TO) Nortel Networks Builds 3G Wireless Network for Asia Pacific

Posted on: Friday, 25 July 2003, 06:00 CDT

TAIPEI, Taiwan--(BUSINESS WIRE)--July 25, 2003--Nortel Networks (NYSE:NT) (TSX:NT) has built a third generation (3G) Wireless Data Network for Asia Pacific Broadband Wireless (APBW), which plans to launch Taiwan's first commercial 3G services.

Beginning in the third quarter of 2003, APBW is scheduled to begin providing wireless voice and data services island-wide. Data services will be offered at rates up to 153 kilobits per second (Kbps) using CDMA2000 1X technology. APBW will also offer higher-speed data services in the Taipei metropolitan area -- with a peak rate of 2.4 megabits per second (Mbps) -- using CDMA2000 1xEV-DO.

CDMA2000 technology positions APBW to increase the capacity of its existing wireless network, and to offer advanced wireless data services like Web browsing, video and audio streaming, fast and secure corporate intranet access, e-mail with large attachments, and 'mobile desktop' capability. Nortel Networks is the sole CDMA infrastructure provider for APBW, one of five Taiwan carriers awarded 3G licenses in February 2002.

"Our aim is to firmly establish ourselves as the mobile telephony and high-speed data leader in Taiwan," said Wang Lin-tai, chairman, Asia Pacific Broadband Wireless. "We are looking for leading position in high speed data service market, as well as number one branding in Taiwan 3G market."

"We have been working very closely with APBW in the last eight months to build this 3G network in Taiwan for the commercial service launch," said Jackson Wu, managing director, Taiwan, Nortel Networks. "This demonstrates the wireless expertise of Nortel Networks, as well as our ongoing commitment to the Taiwan market."

Nortel Networks solution for APBW includes circuit core, packet core, and access network technologies. Products deployed include CDMA Metro Cell radio base stations, CDMA2000 1xEV-DO Radio Network Controller and Element Management System, CDMA Packet Data Service Node, Nortel Networks Passport 8600 Gigabit Ethernet Routing Switch and Passport 7000 Multiservice Switch, and related infrastructure.

Nortel Networks CDMA technology is designed to help operators maximize investments in spectrum and infrastructure, accommodate subscriber growth, and drive lower capital and operating costs.

A leader in CDMA since 1995, Nortel Networks has designed and deployed CDMA networks over varying terrain and population densities for more than 65 operators in 17 countries. This includes deployment of more than 35,000 3G-ready base stations as of March 31, 2003. Nortel Networks is providing CDMA2000 1X technology to leading operators around the world, including China Unicom; Telstra in Australia; Verizon Wireless, Sprint PCS and Bell Mobility in North America; Pelephone in Israel; SMARTCOM PCS in Chile; SERCOM in Guatemala; and Multi-Links Telecommunications in Nigeria. Nortel Networks is providing technology to support CDMA2000 1xEV-DO networks for Verizon Wireless, Brazil's Vesper, and PT Wireless Indonesia.

Nortel Networks is the world's only telecommunications equipment supplier with wireless data networks in service in all three advanced wireless technologies -- GPRS, CDMA2000 and UMTS.

Asia Pacific Broadband Wireless Communications Inc. (APBW), founded in November 2001 and awarded a CDMA2000 license in February 2002, is currently the sole CDMA2000 operator in Taiwan. APBW is part of the Asia Pacific Telecom Group leads by Wang Lin-tai, with a total capital of more than NT$82 billion. Asia Pacific Telecom Group has subsidiaries including Eastern Broadband Telecom, APBW and Asia Pacific Online Service. The business spanning broadband fixed lines, broadband wireless and broadband Internet to provide total broadband services to customers.

Nortel Networks is an industry leader and innovator focused on transforming how the world communicates and exchanges information. The Company is supplying its service provider and enterprise customers with communications technology and infrastructure to enable value-added IP data, voice and multimedia services spanning Wireless Networks, Wireline Networks, Enterprise Networks, and Optical Networks. As a global company, Nortel Networks does business in more than 150 countries. More information about Nortel Networks can be found on the Web at www.nortelnetworks.com.

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 severity and duration of the industry adjustment; the sufficiency of our restructuring activities, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions; fluctuations in operating results and general industry, economic and market conditions and growth rates; the ability to recruit and retain qualified employees; fluctuations in cash flow, the level of outstanding debt and debt ratings; the ability to meet financial covenants contained in our credit agreements; the ability to make acquisitions and/or 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; 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; the dependence on new product development; the uncertainties of the Internet; the impact of the credit risks of our customers and the impact of customer financing and commitments; stock market volatility; the entrance into an increased number of supply and outsourcing contracts which contain delivery and installation provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; the ability to obtain timely, adequate and reasonably priced component parts from suppliers and internal manufacturing capacity; the future success of our strategic alliances; and the adverse resolution of litigation. For additional information with respect to certain of these and other factors, see the reports filed by Nortel Networks with the United States Securities and Exchange Commission. Unless otherwise required by applicable securities laws, Nortel Networks disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Nortel Networks, the Nortel Networks logo, the Globemark and Passport are trademarks of Nortel Networks.

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