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Nortel Networks

Nortel, Qualcomm and Orange Achieve Industry's First W-CDMA 900 MHz Calls

Paris (ots/PRNewswire)

- New Cost-effective Alternative to Provide High-speed Wireless
Internet  in Rural Areas
Nortel(x) (NYSE: NT ; TSX: NT), QUALCOMM (Nasdaq: QCOM) and Orange
have successfully completed UMTS and HSDPA calls in the 900 MHz band,
a spectrum capable of delivering wireless broadband such as mobile
TV, video-on-demand, video telephony and DSL-like services to rural
areas.
W-CDMA (UMTS) in the 900 MHz band is a cost effective way to
deliver nationwide high-speed wireless coverage. It achieves a 60
percent reduction in cell sites required to serve rural areas and
delivers improved Quality of Service in urban areas by enhancing
in-building penetration by 25 percent.
The category 6 HSDPA calls, using the 16 QAM Modulation and
reaching 3.6Mbps data rate, were completed using Nortel's commercial
infrastructure technologies, mobile handsets based on QUALCOMM's
Mobile Station Modem(TM) MSM6280(TM) chipset solution and Orange's
900 MHz spectrum.
"UMTS in the 900 MHz band is a complementary solution to existing
3G services that will enable Orange to provide high speed wireless
Internet to both rural and urban areas of France, thereby enabling us
to deliver a true nationwide UMTS/HSDPA service," said Vivek
Badrinath, executive vice president, products, technology and
innovation, Orange Group.
Nortel's innovations in spectral efficiency are the key enablers
to liberate spectrum in the 900 MHz band, providing wireless
operators with the capability to deploy W-CDMA in that band. The
implementation of UMTS 900 is compatible with widely deployed Node B
hardware for simplified integration. QUALCOMM's Mobile Station Modem
solutions for HSDPA were the first in the world to be commercially
available, and data rates of up to 7.2 Mbps are supported by the
company's HSDPA portfolio.
Nortel, Qualcomm and Orange plan to publicly demonstrate this
capability during the 3GSM World Congress in Barcelona in February.
Nortel achieved the industry's first HSDPA mobile call in January
2005. Nortel and LGE completed the first live test calls using a
commercial handset solution for HSDPA in March 2005. In June 2005,
Nortel became the first wireless network supplier to complete the
TL9000 registration standard for Quality Management System
Requirements and Measurements across its HSDPA, UMTS and GSM wireless
infrastructure solutions.
Nortel has worked with a number of wireless operators on HSDPA
trials and deployments in 2005, including EDGE Wireless in the US,
SKT and KTF in Korea, SOFTBANK Group's BB Mobile in Japan, mmO2,
Orange (at 3GSM World Congress 2005 in Cannes, France), Vodafone (at
CeBIT 2005 in Hanover, Germany), Partner Communications in Israel,
and Mobilkom Austria.
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.
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 ongoing 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); 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
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 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; general stock market volatility; 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; the future success of
Nortel's strategic alliances; and certain restrictions on how Nortel
and its president and chief executive officer conduct business. 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.
(x) Nortel, the Nortel logo and the Globemark are trademarks of
Nortel Networks.

Contact:

Isabelle Tadmoury, Tel: +331-695-51291, Tadmoury@nortel.com; Ben
Roome, +44-162843-3113, benroome@nortel.com, www.nortel.com

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