Japan’s KDDI Selects LTE Core as Next-Generation Mobile Broadband Solution from Hitachi and Nortel

New Network to Provide Faster, Richer Multimedia Content for Japan’s Hyperconnected Consumers and Business Users

TOKYO - KDDI, Japan’s second largest cellular operator, will deploy a next-generation Long-Term Evolution (LTE) wireless network using a core networking solution from Hitachi collaborating with Nortel* [NYSE/TSX: NT ].

The new LTE network from Hitachi and Nortel will provide an overlay to the existing CDMA mobile network, enabling instant access to the bandwidth-intense multimedia content and applications demanded by KDDI’s tech savvy 30 million mobile consumers and business users. The network will significantly improve user experience through greatly reduced download times for music and video services as well as providing anywhere, anytime access to bandwidth-hungry applications such as video, real-time mobile games and online services. The network will also help lower costs for KDDI and ensure seamless interoperability with the current 3G CDMA network.

Through its ’Challenge 2010’ initiative, KDDI is striving for impeccable customer service by delivering the value users seek from its communications solutions. High levels of reliability, convenience, service differentiation and customer satisfaction are key aims of the LTE network deployment.

KDDI selected Hitachi, teaming with Nortel, to deliver the technology required as KDDI embarks on the next-generation journey of its communications network deployment. Hitachi Communication Technologies Limited, a fully owned subsidiary of Hitachi, will take a major role of solution development with Nortel.

“We chose Hitachi and Nortel to collaborate with us on this journey because of their proven technology leadership, their experience, expertise in delivering differentiated solutions and time to market advantage which allows us to launch services quickly,” said Masahiro Inoue, associate senior vice president, KDDI. “Nortel has demonstrated clear technology leadership in early LTE trials with industry-firsts in high-speed mobility handover and in LTE interworking with CDMA which is the base of our current network. Nortel also offers an open standards approach and proof of true multi-vendor compatibility - all of which are essential to KDDI’s needs. Adding the global experience of Nortel to the proven track record of our existing core network supplier Hitachi gives us the perfect team to drive our network to the next level.”

“As a network infrastructure system and mobile handset vendor, Hitachi has built a strong partnership with KDDI over many years, and will continue to supply the high-quality, high-performance products and solutions they require,” said Setsuo Takahashi, executive vice president of carrier network systems division, Hitachi Communication Technologies. “Nortel’s R&D capability, contributions to CDMA 3GPP2 and LTE 3GPP standards and proven record in wireless networks globally are major strengths to us. By collaborating with Nortel, we will be able to quickly meet KDDI’s needs for next-generation wireless services.”

“I’m excited by the opportunity to team with Hitachi to deliver the next generation of mobility to KDDI,” said Richard Lowe, president Carrier Networks, Nortel. “With the deployment of this LTE network, KDDI’s customers nationwide will enjoy real-time high-bandwidth content and the enhanced quality of experience that a true broadband service delivers with the freedom of mobility. At the same time, we are fully committed to maintaining and enhancing the outstanding customer service levels and reliability of KDDI’s existing CDMA network with a seamless introduction of this next-generation network solution.”

The tender award of KDDI’s LTE core network includes the deployment of a new Evolved Packet Core (EPC) from Hitachi, featuring Nortel’s new ATCA-based Access Gateway as a Mobility Management Entity (MME) as well as an evolution to KDDI’s existing operation, management and provisioning system to ensure a seamless upgrade path to the new network.

Nortel has recently showcased its technology and time to market leadership in LTE through an ’everyday conditions’ live mobile trial with T-Mobile in Bonn, Germany. Nortel was also selected as one of the trial partners for Verizon,** the leading CDMA service provider in the U.S., as Verizon looks to enhance its CDMA network with LTE.

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.

*Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks.
**This is a 3rd party link as described in our Web linking practices.
Use of the terms “partner” and “partnership” does not imply a legal partnership between Nortel and any other party.