Verizon Dominicana Completes Expansion of 3G Wireless Network in Domin

    Business Editors/Technology Editors

    SANTO DOMINGO, Dominican Republic--(BUSINESS WIRE)--May 10, 2005--Verizon Dominicana, the principal telecom service provider in the Dominican Republic, has completed an expansion of its nationwide third generation (3G) wireless network with wireless solutions from Nortel (NYSE:NT) (TSX:NT). The expanded network will meet growing demand for advanced data services through such Nortel solutions as CDMA2000 1X and CDMA2000 1xEV-DO technology.
    Nortel completed the expansion through a seamless integration of the new solutions with the rest of Verizon Dominicana's network. The network transition to increase coverage and availability of 3G services was completely transparent to end-users.
    As part of the project, Nortel has deployed a complete CDMA 1X solution for Verizon Dominicana, including radio base stations, base station controllers, switching platforms and other related equipment to significantly boost capacity for wireless data services. This deployment also positions Verizon Dominicana to migrate its network to a packet-based switching platform using Nortel's CDMA Packet MSC (mobile switching center) solution. This solution is designed to reduce operating costs and increase network capacity while at the same time supporting delivery of feature-rich voice and data services.
    "Verizon Dominicana prides itself on always offering its customers the most advanced communications services and we chose Nortel's proven wireless solutions to help us achieve our objective," said Isaac Madera, director, Network Planning, Verizon Dominicana. "An upgraded 3G network gives us the additional capacity to improve coverage and delivery of 3G data services across our network, while also facilitating the evolution to EV-DO to bring even more sophisticated broadband services to our customers."
    Verizon Dominicana is also running trials of Nortel's EV-DO solution in selected regional areas in the Dominican Republic. This solution is designed to enable greatly enhanced levels of performance for advanced applications like high-speed mobile broadband Internet access, virtual office, real-time video and other data and multimedia services. EV-DO is a broadband radio technology that can support transmission speeds higher than those currently available using ADSL and cable modems.
    Nortel has been working with Verizon Dominicana for over 10 years to deploy advanced networks, including Voice over IP (Internet Protocol), wireless and optical infrastructures, throughout the Dominican Republic. Most recently, Nortel deployed a complete metro optical solution for Verizon Dominicana's wireline network, based on Nortel Optical Cross-Connect DX and Optical Metro 3500, to consolidate network traffic, provide improved flexibility and reduce operating expenses.
    "Nortel has more than 35 years of experience in deploying the same advanced communication solutions in the Caribbean as we do with the largest carriers around the world to help regional operators roll out leading-edge services to their customers on networks that are secure, reliable and cost-effective," said Kevin Taylor, vice president, Wireless Carrier Networks, Caribbean and Latin America, Nortel. "This project reaffirms our long-standing relationship with Verizon Dominicana and our commitment to continue working with them to provide highly advanced networks that will help enhance the communications experience of their customers in the Dominican Republic."
    Nortel is currently deploying EV-DO, with leading customers around the world, including Verizon Wireless in the United States, Vesper in Brazil, Smartcom in Chile, Pelephone in Israel, Asia Pacific Broadband in Taiwan, Telstra in Australia and Eurotel in the Czech Republic. With its CDMA equipment designed to support EV-DO through modular upgrades to existing hardware, Nortel re-uses existing base station equipment to reduce or eliminate the need for costly hardware replacements while driving reduced operating costs.
    Nortel has designed, deployed and launched more than 300 wireless networks in more than 70 countries around the world. Nortel was the first industry supplier to have wireless networks operating in all advanced radio technologies (GSM/GPRS/EDGE, CDMA2000 1X and EV-DO, UMTS and WLAN), and is the only end-to-end supplier of all new-generation wireless solutions.

    About Verizon Dominicana

    Verizon Dominicana is the leading telecommunications service provider in the Dominican Republic, offering local, long-distance and wireless voice services, together with advanced data services to approximately a million customers. Verizon (NYSE:VZ) is one of the world's leading providers of communications services, with operations in 40 countries in the Americas, Europe, Asia and the Pacific. For more information, please visit www.verizon.com.

    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. Serving both service provider and enterprise customers, Nortel delivers innovative technology solutions encompassing end-to-end broadband, Voice over IP, multimedia services and applications, and wireless broadband designed to help people solve the world's greatest challenges. Nortel does business in more than 150 countries. For more information, visit Nortel on the Web at www.nortel.com. For the latest Nortel news, visit www.nortel.com/news.

    Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events.
    Factors which could cause results or events to differ from current expectations include, among other things: the outcome of regulatory and criminal investigations and civil litigation actions related to Nortel's restatements and the impact any resulting legal judgments, settlements, penalties and expenses could have on Nortel's results of operations, financial condition and liquidity; the findings of Nortel's independent review and implementation of recommended remedial measures; the outcome of the independent review with respect to revenues for specific identified transactions, which review will have a particular emphasis on the underlying conduct that led to the initial recognition of these revenues; the restatement or revisions of Nortel's previously announced or filed financial results and resulting negative publicity; the existence of material weaknesses in Nortel's internal controls over financial reporting; the impact of Nortel's and NNL's failure to timely file their financial statements and related periodic reports, including breach of its support facility and public debt obligations and Nortel's inability to access its shelf registration statement filed with the United States Securities and Exchange Commission ("SEC"); ongoing SEC reviews, which may result in changes to our public filings; the potential delisting or suspension of Nortel's and NNL's publicly traded securities; the impact of management changes, including the termination for cause of Nortel's former CEO, CFO and Controller in April 2004; the sufficiency of Nortel's restructuring activities, including the work plan announced on August 19, 2004 as updated on September 30, 2004, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions;
    cautious or reduced spending by Nortel's customers; fluctuations in Nortel's operating results and general industry, economic and market conditions and growth rates; fluctuations in Nortel's cash flow, level of outstanding debt and current debt ratings; Nortel's ability to recruit and retain qualified employees; the use of cash collateral to support Nortel's normal course business activities; the dependence on Nortel's subsidiaries for funding; the impact of Nortel's defined benefit plans and deferred tax assets on results of operations and Nortel's cash flow; the adverse resolution of class actions, litigation in the ordinary course of business, intellectual property disputes and similar matters; Nortel's dependence on new product development and its ability to predict market demand for particular products; Nortel's ability to integrate the operations and technologies of acquired businesses in an effective manner; the impact of rapid technological and market change; the impact of price and product competition; barriers to international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; the impact of rationalization and consolidation in the telecommunications industry; changes in regulation of the Internet; the impact of the credit risks of Nortel's customers and the impact of customer financing and commitments; stock market volatility generally and as a result of acceleration of the settlement date or early settlement, which is currently not available, of Nortel's forward purchase contracts; the impact of Nortel's supply and outsourcing contracts that contain delivery and installation provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; and the future success of Nortel's strategic alliances.
    For additional information with respect to certain of these and other factors, see the most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed by Nortel 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.

    Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks. Verizon and the Verizon logo are trademarks of Verizon.

--30--BD/da*

CONTACT: Nortel Ferngene Kook, 954-858-7101 email: fkook@nortel.com or Verizon Dominicana Issac Madera, 809-220-8744 email: issac_madera@verizon.com.do

KEYWORD: TEXAS INTERNATIONAL LATIN AMERICA INDUSTRY KEYWORD: TELECOMMUNICATIONS NETWORKING HARDWARE SOFTWARE PRODUCT MARKETING AGREEMENTS SOURCE: Nortel

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