Cegetel, Nortel Networks Sign Memorandum of Understanding For Deployment of Commercial Third Generation Wireless Network - Company Business and Marketing

Cambridge Telcom Report, Dec 6, 1999

Cegetel, France's first private telecommunications operator, and Nortel Networks have signed a Memorandum of Understanding (MoU) to collaborate on development of third generation (3G) digital mobile communications services.

The MoU includes deployment of a commercial wireless network based on the Universal Mobile Telecommunications Service (UMTS) standard, subject to Cegetel's success in obtaining a license for UMTS radio spectrum in France.

The MoU calls for Nortel Networks to work closely with Cegetel over the next 2 years to combine Nortel Networks' expertise in UMTS systems with Cegetel's understanding of the market and end-user needs in order to jointly develop 3G wireless capabilities for France.

Nortel Networks will provide Cegetel with pre-commercial platforms for testing and optimization of high-speed wireless multimedia services beginning mid-year 2000.

"Nortel Networks' extensive knowledge of both the technology and market drivers for mobile data evolution will lead us to quickly delivering subscribers profitable, leading-edge mobile multimedia services" said Jean-Pierre Duthoit, directeur g\006neral, Network and Information Systems, Cegetel.

"The MoU with Cegetel reinforces our leadership position in creating the high-performance Wireless Internet," said Matt Desch, president, Service Provider Solutions, Nortel Networks.

"A profitable, reliable, high-quality and high speed Wireless Internet will redefine the way business is conducted and the way people work, learn and entertain themselves across Europe. We are pleased to be working with Cegetel to make the opportunities and vision of the Wireless Internet a reality."

Cegetel is expected to be one of the first customers to capitalize from the alliance formed in 1998 between Nortel Networks and Panasonic to develop 3G wireless voice and data solutions.

Nortel Networks and Cegetel are also demonstrating Wireless Internet applications this week at the Sircom tradeshow in Paris, France. Visitors have access to a variety of innovative data, voice and multimedia services using prototype Panasonic devices, including mobile videophones, and high-speed wireless modems.

With FF 19 billion revenues in 1998 and 7000 employees in France, Cegetel is France's first private telecommunications operator. As a global operator, Cegetel addresses all telecommunications activities. With approximately seven million subscribers by the end of 1999, SFR mobile telephony service answers all customer needs with a diversified commercial offer. Cegetel's "7" fixed line service accounts for over 1.4 million activated lines. Cegetel is also a major Internet player with over 450,000 subscribers under the AOL and Compuserve brand names. Visit Cegetel at www.cegetel.fr

Nortel Networks is a global leader in telephony, data, wireless and wireline solutions for the Internet. The Company had 1998 revenues of US$17.6 billion and serves carrier, service provider and enterprise customers globally. Today, Nortel Networks is creating a high-performance Internet that is more reliable and faster than ever before. It is redefining the economics and quality of networking and the Internet through Unified Networks that promise a new era of collaboration, communications and commerce. FMI: www.nortelnetworks.com.