Nortel Blurs the Boundaries Between TV and Interactive Applications at TelcoTV ‘08

Nortel IPTV Solutions Converge Entertainment with Communications to Create Personalized Video Applications

ANAHEIM – Nortel* [NYSE/TSX: NT ] is showcasing IPTV and Video solutions that are blurring the boundaries across TV, Internet, consumer devices and mobile phones by integrating services like text messaging, VoIP, media sharing, and interactive applications into the entertainment experience. Nortel is demonstrating these capabilities at TelcoTV 2008 ** from November 11 to 13.

Nortel’s video solutions make it possible for service providers to blend the applications and communications capabilities of computers and mobile devices with TV programming to enhance the entertainment experience. This allows interactive and multimedia Internet applications like text messaging, photo and video sharing, as well as VoIP, to be easily accessed while viewing TV or video on demand. For example, sports enthusiasts can text friendly rivals right from their TVs during a big game. Or, consumers can order a new product directly from an ad on their TV with a simple click of the remote control connecting them with the sellers through VoIP or text messaging. Nortel’s IPTV solutions also allow users to take TV content out of the house to be viewed on a mobile phone or laptop.

“Nortel’s video solutions can take service providers beyond bundling of services to true convergence of entertainment and interactive applications,” said Sameer Sheth, general manager, Video Solutions, Nortel. “Nortel allows service providers to create a more personalized and convenient user experience for their subscribers where any device can be used for a multitude of functions. For example, a TV, computer or mobile phone can be used to watch video on demand from a single account. A TV can be used to order a pizza, buy tickets to an event, or share photos with friends.”

Nortel’s IPTV solutions will be used to bring enhanced entertainment to subscribers by such customers as Spruce Knob Seneca Rocks **, a telecom service provider in West Virginia; BIT **, a service provider in Virginia; and Yadkin Valley Telecom **, an operator serving over 30,000 households in North Carolina. Both Spruce Knob Seneca Rocks and BIT will deploy Nortel’s Communications Module 9520 to bring new interactive applications such as click-to-call, text messaging and picture sharing to their television subscribers. Yadkin Valley Telecom is implementing Nortel’s pre-integrated IPTV Solution to provide a secure, reliable, scaleable high-definition entertainment service.

In this era of Hyperconnectivity where any device or application that should be connected to the network is being connected, Nortel’s video solutions give service providers the ability to leverage a multitude of different devices – TV, Blu-ray ** player, computer, mobile phone – in an open environment to create new services and applications designed to generate additional revenues from their network investment. But offering these new interactive applications on many devices can lead to an explosion in bandwidth demand on networks as well.

To help service providers meet this demand, Nortel’s Ethernet Access solution based on WDM PON technology provides dedicated, super-fast, secure, and reliable optical bandwidth starting with speeds of 100 Mbps and easily scalable as services grow on a foundational infrastructure. At Telco TV Nortel will demonstrate the delivery of IPTV, VoIP , and data services over Ethernet Access based on WDM-PON, including simple network management and recovery of services.

Here are other IPTV and video applications Nortel is demonstrating in booth #401 at TelcoTV 2008 in Anaheim, CA:

* TV widgets – a TV interface that users can personalize, much like they would on a computer, displaying content such as the latest news, weather, sports schedules, and video on the TV screen.
* Convergence of consumer electronics with entertainment, providing the ability to perform interactive two-way multimedia communication between a mobile device and an Internet connected BD-Live ** Blu-ray player. With this capability, consumers can receive photos on a Blu-ray player and make a click-to-call back to the sender.
* Single subscription video services that allow a subscriber to order video on demand from a set top box and then watch it on other devices, such as a TV (with set top box), mobile phone or laptop.
* Interactive TV advertising that puts merchandise only a “click-to-call” or “click-to-purchase” away
* A network based digital vault that can be accessed from anywhere, allowing users to share and store pictures and personal videos from mobile to PC and vice versa.

These demonstrations are testament to Nortel’s strength in delivering applications that allow service providers to innovate and monetize personalized video applications, leverage existing network investment and enhance consumers’ experiences. Nortel’s video solutions enable and leverage an open Video Services Platform that is part of the company’s Agile Communications Environment , promoting third-party application development.

Nortel is working with companies at the forefront of consumer electronics to help service providers’ extend the reach of communications applications to consumer electronics by developing advanced application convergence opportunities with BD-Live capable Blu-ray players. The companies include RCDb **, a leading developer of network services and software for Blu-ray discs and devices and Vantrix **, a leading provider of content adaptation and optimization solutions for converged wireless, broadband and cable networks.

Nortel experts will be contributing to two panel sessions at Telco TV:

* Peter Ashton, Nortel IPTV Product Marketing, will speak at a panel session in the Consumer Experience track called Integrating the Social Network Experience: Fad or Reality? on November 12, 4:30 to 5:30 PM
* Richard Brand, Nortel Video Solutions and vice-chair of ATIS ** IPTV Interoperability Forum, will moderate a panel session in the Evolve with Technology track called Set Top Box Evolution: Gateway to the Home? on November 13, 2:15 to 3:15 PM.

About Nortel

Nortel is a recognized leader in delivering communications capabilities that make the promise of Business Made Simple a reality for our customers. Our next-generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel’s technologies are designed to help eliminate today’s barriers to efficiency, speed and performance by simplifying networks and connecting people to the information they need, when they need it. Nortel does business in more than 150 countries around the world. For more information, visit Nortel on the Web at www.nortel.com . For the latest Nortel news, visit www.nortel.com/news .

Certain statements in this press release may contain words such as “could”, “expects”, “may”, “anticipates”, “believes”, “intends”, “estimates”, “targets”, “envisions”, “seeks” and other similar language and are considered forward-looking statements or information under applicable securities legislation. These statements are based on Nortel’s current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which Nortel operates. These statements are subject to important assumptions, risks and uncertainties, which are difficult to predict and the actual outcome may be materially different from those contemplated in forward-looking statements. For additional information with respect to certain of these and other factors, see Nortel’s Annual Report on Form10-K, Quarterly Reports on Form 10-Q and other securities filings 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.

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