Omnipoint Selects Nortel Networks to Supply US$100 Million In GSM, Wireless Internet Solutions for New York Market Expansion - Company Business and Marketing

Cambridge Telcom Report, August 9, 1999

Omnipoint Communications (NASDAQ: OMPT) has placed an order with Nortel Networks (NYSE/TSE: NT) for additional wireless equipment and services valued in excess of US$100 million to expand its digital PCS (personal communications services) network in New York.

The order, which is accompanied by vendor financing, increases Omnipoint's five-year investment in Nortel Networks' equipment and services to more than US$530 million.

Omnipoint intends to deploy additional Nortel Networks GSM 1900 radio base stations and Nortel Networks DMS-MSC SuperNode switching over the next year to expand network capacity and service coverage in the New York MTA (major trading area).

Omnipoint also intends to deploy Nortel Networks' innovative GPRS (General Packet Radio Service) solution to add Wireless Internet and other high-speed wireless data services to a PCS portfolio already featuring high-quality digital voice and short messaging services.

"With Nortel Networks' GSM solutions, we continue to offer our customers the very best in secure, high-quality mobile voice, messaging and data communications," said George Schmitt, president, Omnipoint Communications.

"Already a market leader in wireless information services with two-way short messaging, on-demand stock quotes and news headlines, Omnipoint will look to continue this leadership with deployment of the Nortel Networks' GPRS solution for `always on' Wireless Internet services," Schmitt said.

"Our award winning GSM voice performance and product portfolio, global experience, and number one ranked Wireless Internet strategy give Omnipoint the means to deliver leading-edge wireless services today and for years to come," said Pascal Debon, president, Mobility, Nortel Networks.

Nortel Networks' GPRS solution, based on the widely deployed Nortel Networks Passport and Contivity Extranet switches, allows wireless service providers to offer full ISP (Internet Service Provider) capabilities, including portals and e-commerce. It also supports Virtual Private Networks (VPNs) and other wireless data services, ultimately at speeds up to 170 kilobits per second, nearly 12 times faster than typically available today.

Omnipoint has been offering customers digital wireless data since launching commercial service in early 1997. The company presently provides 14.4 kbps

connections in some markets and 9.6 kbps connections in others.

Omnipoint Communications, a subsidiary of Omnipoint Corporation, currently provides advanced wireless communications services in New York, New Jersey, Connecticut, Eastern Pennsylvania, Delaware, Massachusetts, New Hampshire, Rhode Island, Southern Florida, Michigan, Ohio, Indiana and Maryland. It intends to provide those services in additional areas.

Nortel Networks delivers value to customers around the world through Unified Networks solutions, spanning mission-critical telephony and IP-optimized networks. Customers include public and private enterprises and institutions; Internet service providers; local, long-distance, cellular and PCS communications companies, cable television carriers, and utilities.

Nortel Networks' common shares are listed on the New York, Toronto, Montreal, Vancouver, and London stock exchanges. Nortel Networks had 1998 revenues of US$17.6 billion and has approximately 75,000 employees worldwide.