Nortel Networks Extends Industry-Leading Portfolio of `First Mile' Access Solutions. Revolutionary Internet FWA System Uses Packet Technology for High-Speed, "Always On" Data - Product Announcement

Cambridge Telcom Report, April 17, 2000

Announced Tuesday at Telecom Americas 2000, Nortel Networks' Internet fixed wireless access (FWA) system features a hybrid circuit/packet architecture that can cost-effectively deliver `always on' Internet connections - at speeds up to 326 kilobits per second (kbps) for small businesses and 163 kbps for residential customers - and wireline-equivalent voice services.

"We believe Nortel Networks' Internet FWA is the perfect fit to provide the cost-effective, high-speed Internet access our subscribers are demanding," said Alberto de Villasante Herbert, vice-president, strategic negotiations for Mexico's AXtel, which will be first to deploy Internet FWA in its nationwide network beginning in the first quarter of 2001. "We look forward to capturing these customers, plus continuing to provide top-quality local access solutions in the Mexican market."

"Internet FWA can help operators like AXtel close the gap between the `haves' and the `have nots' by making it feasible to provide the latest voice and data capabilities to millions of new subscribers," said Steve Schilling, president, access, Nortel Networks.

"The latest edition to our extensive portfolio of innovative solutions for `first mile' access, Internet FWA leverages cutting-edge technology and more than five years of commercial experience in fixed wireless to further Nortel Networks' leadership position in cost-effective solutions for high-speed Internet access," Schilling said.

Using digital radio technology and small, roof or wall-mounted octagonal `dish' antennas, Nortel Networks' Internet FWA can be installed on a customer's premises in a matter of hours. This can significantly reduce an operator's capital and deployment costs compared to wired solutions requiring weeks or months to install.

Fast, simple installation also means equipment need only be installed when customers subscribe, versus wired solutions requiring advance installation to attract subscribers. This makes capital and deployment costs more predictable and manageable for operators, and speeds time to revenue.

Operating at the 3.5 GHz frequency widely allocated for fixed wireless access in Latin America, Asia and Europe, Nortel Networks' Internet FWA is equally adept at serving urban, suburban and rural markets, and easily deployed over a variety of terrain.

Nortel Networks is a global leader in telephony, data, eBusiness, and wireless solutions for the Internet. The Company had 1999 U.S. GAAP revenues of US$21.3 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. Visit us at www.nortelnetworks.com.