Nortel Networks Unveils Rural Market Voice Network Evolution; Enhancements to Voice, VoIP Products to Simplify Networks, Reduce Costs

Business Wire, August 20, 2002

Business Editors/High-Tech Writers

RESEARCH TRIANGLE PARK, N.C.--(BUSINESS WIRE)--Aug. 20, 2002

Nortel Networks (NYSE:NT) (TSX:NT.) will enhance its voice and VoIP (voice over IP) products as part of a network evolution plan designed to enable independent service providers to effectively evolve their smaller networks to a more cost-effective "packet" infrastructure, reducing network migration costs by up to 40 percent.

Developed to drive VoIP to the rural market, this new plan includes upgrades to Nortel Networks DMS-10, Nortel Networks

Succession Communications Server 2000-Compact softswitch, and Nortel

Networks Succession Media Gateway 9000.

These product enhancements are designed to enable independent service providers to simplify their networks, reduce operational and

maintenance costs, and build a foundation for delivery of next

generation multimedia services to rural subscribers. In addition,

Nortel Networks enhanced Succession solution will allow independent

carriers to more easily deliver new services such as DSL (digital

subscriber line), and future multimedia IP services like instant video conferencing and personal call manager.

"Independent service providers have been significantly less impacted by the telecom industry downturn and are eager to expand

packet services," says Lynn Merrill, chief executive officer and

president, Monte R. Lee & Company, a communications engineering firm. "Nortel Networks is the premier supplier to the independent service provider installed base, and these service providers will be pleased that Nortel Networks has developed a migration strategy to evolve their networks while leveraging their existing equipment."

"As a long-time Nortel Networks customer, Frontier Communications is interested in Nortel Networks plan for rural market evolution, and its potential to leverage our investment in DMS-10 switches as well as lay the groundwork for a converged voice and data network," said Les Saldanha, Network Planning and Engineering, Frontier Communications, a Citizen's Communications Company. "Migrating our network to packet

will position us to reduce costs, meet current and future demands for growth, and continue to provide our customers with quality service and advanced technology."

Nortel Networks new product functionality includes:

-- Integrated billing storage and recovery capabilities on Nortel

Networks DMS-10, a carrier class switching system. This

functionality will not only reduce costs, but also increase

reliability of the customer network by eliminating the need

for external, third-party billing storage devices.

-- Support for legacy DMS peripherals and a choice of ATM or IP

packet technology on Nortel Networks Succession Communications

Server 2000 Compact softswitch. This re-use of existing

equipment, combined with the scalable CS2000 Compact will

provide an affordable, flexible path for circuit to packet

migration.

-- Enhancements on Succession Media Gateway 9000 will allow

affordable packet migration for small switches. By bridging

PTS, PRI and ISUP trunking services from DMS peripherals,

Succession Media Gateway 9000 will enable affordable

connectivity to enterprises and other carriers from small

sites. In addition, dynamic sizing of call control transport

will allow carriers to minimize bandwidth requirements between

the softswitch and Media Gateway 9000.

In addition, Nortel Networks ability to offer combined voice and data solutions, leveraging the industry leading Passport multiservice switching portfolio including Passport 7480 and Passport 15000, will

enable rural operators to easily add and deploy advanced data and IP applications in parallel with next generation voice services, over a common ATM or IP packet core.

"This demonstrates Nortel Networks continued commitment to our rural market customer base," said Sue Spradley, president, voice over IP, Nortel Networks. "We are enhancing Succession to provide a voice

over packet evolution plan for independent service providers, allowing them to realize the many benefits of circuit-to-packet that larger

service providers are already experiencing."

"Nortel Networks DMS-10 continues to provide an economically viable solution for our independent and rural market customers,"

Spradley said. "This new product road map will allow customers to continue to invest in DMS-10 with confidence. Already, 67 customers

have committed to upgrade to the new DMS-10 software release expected to ship in October, including Eastex Telephone Cooperative in

Henderson, Texas and Sully Buttes Telephone Cooperative in Highmore,

South Dakota."

Nortel Networks is an industry leader and innovator focused on transforming how the world communicates and exchanges information. The company is supplying its service provider and enterprise customers

with communications technology and infrastructure to enable

value-added IP data, voice and multimedia services spanning Metro and Enterprise Networks, Wireless Networks and Optical Networks. As a global company, Nortel Networks does business in more than 150 countries. More information about Nortel Networks can be found on the Web at www.nortelnetworks.com.