Nortel Networks

Jazztel Launches VoIP Service for Carriers With Nortel Solution

    Madrid, Spain (ots/PRNewswire) -

    - Network Enhancement Enables New Revenue-Generating Opportunity

    Jazztel - Jazz Telecom S.A. (Nuevo Mercado in Spain: JAZ) - has launched wholesale carrier international VoIP services using Nortel(x)  (NYSE: NT , TSX: NT) next-generation technology.

    A leading telecommunications and data transmission carrier in Spain,  Jazztel, has deployed Nortel's carrier-grade Communication Server 2000  superclass softswitch technology to more cost-effectively enhance its  original network to provide the next-generation capacity and performance  needed to create new revenue-generating wholesale international services  for its service provider customers. In addition to technology, Nortel is  providing Jazztel with deployment and maintenance services from the Nortel Global Services portfolio.

    "Jazztel's network upgrade is vital to helping us introduce new services and create new revenue streams," said Rafael Conejos, chairman,  Jazztel. "In the late 1990s, as one of several fixed-line operators  emerging in Spain, we set a flexible foundation for the future by investing  in a network backbone and added extensive last-mile connectivity from  Nortel. This initial investment meant that when we wanted to upgrade our  network, Nortel carrier- class switching technology was easily deployed to  provide additional capacity for our new wholesale services."

    "For Jazztel, quality of service, network efficiency and economies of  scale are vital to its competitive edge," said Casimir Alonso, vice  president, Nortel Iberia, "Nortel's expertise in designing, installing and  managing sophisticated next-generation networks is helping Jazztel drive  new revenue- generating services and lower operating costs."

    Jazztel's fiber-optic local access and backbone network were originally  built by Nortel in 1998 to enable alternative local and long-distance voice  services including international connections, as well as data and Internet  services. Since then, Nortel has continued to support the Jazztel network  with professional services including preventative and remedial services.  When the company explored the feasibility of providing wholesale service  capabilities Nortel offered a solution based on its carrier class switching  technology.

    The CS 2000 is a superclass softswitch providing consolidated local,  tandem and long distance capabilities that enable service providers to more  cost-effectively transition to Voice over Packet without investing in less  efficient overlay solutions. The network deployment included converting the  existing DMS 100 network into a DMS-CS 2000 Hybrid so that the Jazztel  platform can provide traditional switching capabilities and soft-switch  capabilities. This network enhancement positions Jazztel to provide new revenue-generating wholesale service capabilities, including international  traffic interconnection without increasing network investment.

    Nortel's Global Services portfolio offers a full range of integrated  professional services to provide end-to-end, multi-vendor network solutions  that deliver significant business value. Nortel provides the necessary  services to design, deploy, manage and maintain today's multi-vendor  networks and to facilitate transition to next generation technologies.

    About Jazztel

    Jazztel is a leading telecommunications and data transmission carrier  with its own infrastructure in Spain. The company offers broadband  solutions for voice, data and Internet traffic geared towards residential  and business markets. Jazztel has rolled out its network in more than 100  metropolitan areas and business parks in Spain. This local access network  infrastructure along with its backbone network is one of the most rapid  telecommunications networks in Europe. For more information, visit Jazztel  on the web at

    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 For the latest Nortel news, visit

    Certain statements in this press release may contain words such as " could", "expects", "may", "anticipates", "believes", "intends", "estimates ", "plans", "envisions", "seeks" and other similar language and are  considered forward-looking statements or information under applicable  securities legislation. These statements are based on Nortel's current  expectations, estimates, forecasts and projections about the operating  environment, economies and markets in which Nortel operates. These  statements are subject to important assumptions, risks and uncertainties,  which are difficult to predict and the actual outcome may be materially different. Although Nortel believes expectations reflected in such forward- looking statements are reasonable based upon the assumptions in this press  release, they may prove to be inaccurate and consequently Nortel's actual  results could differ materially from its expectations set out in this press  release. Further, actual results or events could differ materially from  those contemplated in forward-looking statements as a result of the  following (i) risks and uncertainties relating to Nortel's restatements and  related matters including: Nortel's recently announced restatement and two previous restatements of its financial statements and related events and  that the previously filed financial statements of Nortel and NNL and  related audit reports should not be relied upon; the negative impact on  Nortel and NNL of their announced restatement and delay in filing their  financial statements and related periodic reports causing them to breach  their public debt indentures and obligations under their credit facilities  with the possibility that the holders of their public debt or NNL's lenders  would seek to accelerate the maturity of that debt; and causing a breach of  NNL's support facility with EDC with the possibility that EDC would refuse  to issue additional support under the facility, terminate its commitments  under the facility or require NNL to cash collateralize all existing  support; legal judgments, fines, penalties or settlements, or any  substantial regulatory fines or other penalties or sanctions, related to  the ongoing regulatory and criminal investigations of Nortel in the U.S.  and Canada; any significant pending civil litigation actions not  encompassed by Nortel's proposed class action settlement; any substantial  cash payment and/or significant dilution of Nortel's existing equity  positions resulting from the finalization and approval of its proposed  class action settlement, or if such proposed class action settlement is not finalized, any larger settlements or awards of damages in respect of such  class actions; any unsuccessful remediation of Nortel's material weaknesses  in internal control over financial reporting resulting in an inability to  report Nortel's results of operations and financial condition accurately  and in a timely manner; the time required to implement Nortel's remedial  measures; Nortel's inability to access, in its current form, its shelf  registration filed with the United States Securities and Exchange  Commission (SEC), and Nortel's below investment grade credit rating and any  further adverse effect on its credit rating due to Nortel's restatement of its financial statements; any adverse affect on Nortel's business and market price of its publicly traded securities arising from continuing  negative publicity related to Nortel's restatements; Nortel's potential  inability to attract or retain the personnel necessary to achieve its  business objectives; any breach by Nortel of the continued listing  requirements of the NYSE or TSX causing the NYSE and/or the TSX to commence  suspension or delisting procedures; any default in Nortel's filing  obligations extending beyond May 9, 2006, causing any Canadian securities  regulatory authority to impose an order to cease all trading in Nortel's  securities within the applicable jurisdiction or to impose such an order  sooner if Nortel fails to comply with the alternate information guidelines  of such regulatory authorities; (ii) risks and uncertainties relating to Nortel's business including: yearly and quarterly fluctuations of Nortel's  operating results; reduced demand and pricing pressures for its products  due to global economic conditions, significant competition, competitive  pricing practice, cautious capital spending by customers, increased  industry consolidation, rapidly changing technologies, evolving industry  standards, frequent new product introductions and short product life cycles , and other trends and industry characteristics affecting the  telecommunications industry; any material and adverse affects on Nortel's  performance if its expectations regarding market demand for particular  products prove to be wrong or because of certain barriers in its efforts to  expand internationally; any reduction in Nortel's operating results and any related volatility in its market price of its publicly traded securities  arising from any decline in its gross margin, or fluctuations in foreign  currency exchange rates; any negative developments associated with Nortel's  supply contract and contract manufacturing agreements including as a result  of using a sole supplier for key optical networking solutions components,  and any defects or errors in Nortel's current or planned products; any negative impact to Nortel of its failure to achieve its business transformation objectives; restrictions on how Nortel and its president and  chief executive officer conduct its business arising from a settlement with  Motorola Inc.; additional valuation allowances for all or a portion of its  deferred tax assets; Nortel's failure to protect its intellectual property  rights, or any adverse judgments or settlements arising out of disputes  regarding intellectual property; changes in regulation of the Internet and/ or other aspects of the industry; Nortel's failure to successfully operate  or integrate its strategic acquisitions, or failure to consummate or  succeed with its strategic alliances; any negative affect of Nortel's  failure to evolve adequately its financial and managerial control and  reporting systems and processes, manage and grow its business, or create an  effective risk management strategy; and (iii) risks and uncertainties  relating to Nortel's liquidity, financing arrangements and capital  including: the impact of Nortel's recently announced restatement and two  previous restatements of its financial statements; any acceleration under  their public debt indentures and credit facilities, which may result in  Nortel and NNL being unable to meet their respective payment obligations;  any inability of Nortel to manage cash flow fluctuations to fund working capital requirements or achieve its business objectives in a timely manner  or obtain additional sources of funding; high levels of debt, limitations  on Nortel capitalizing on business opportunities because of credit facility  covenants, or on obtaining additional secured debt pursuant to the  provisions of indentures governing certain of Nortel's public debt issues  and the provisions of its credit facilities; any increase of restricted  cash requirements for Nortel if it is unable to secure alternative support  for obligations arising from certain normal course business activities, or  any inability of Nortel's subsidiaries to provide it with sufficient funding; any negative affect to Nortel of the need to make larger defined  benefit plans contributions in the future or exposure to customer credit  risks or inability of customers to fulfill payment obligations under  customer financing arrangements; any negative impact on Nortel's ability to  make future acquisitions, raise capital, issue debt and retain employees  arising from stock price volatility and further declines in Nortel's market  price of its publicly traded securities, or any future share consolidation resulting in a lower total market capitalization or adverse affect on the  liquidity of Nortel's common shares. For additional information with  respect to certain of these and other factors, see Nortel's securities  filings 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.

ots Originaltext: Nortel Networks
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For further information: Jose-Luis Menoyo, +34-917-09-4567,; Jesus Carrillo, +34-91-291-7200,

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