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Nortel Unveils a Broad Range of Digital Mobile TV Solutions


FEBRUARY 13, 2006, BARCELONA, Spain -Nortel* [NYSE/TSX: NT] is demonstrating a series of new mobile TV solutions at 3GSM World Congress 2006, Barcelona, Spain that highlight how mobile operators can capitalize on the surging user demand for video services.

Currently, 3G operators are looking at the most efficient ways to deliver TV content to their subscribers while taking advantage of their existing cellular networks. Nortel is demonstrating the performance and power of its 3G-enabled Digital Mobile TV and Digital Broadcast solutions to help deliver more cost-efficient and high quality services.

ďOur strong presence in South Korea, where mobile TV is really taking off, has given us valuable insight into the revenue possibilities that it can bring to operators,Ē said Peter MacKinnon, president GSM and UMTS networks, Nortel and Chairman LG-Nortel. ďHere, at the 3GSM World Congress, we are demonstrating a full choice of solutions designed to help operators to deliver a truly live, mobile, TV experience, while maximizing revenues per user.Ē

Nortel plans to demonstrate improved image quality of video content delivered íon the goí through its live HSDPA network. Using Category 6 HSDPA terminals receiving information at 3.6 Megabits per second, the demonstrations highlights how operators could add video services at lower cost per bit, without requiring additional spectrum.

Nortel is also highlighting how 3G-operators will be able to smoothly integrate 3G Multimedia Broadcast Multicast Service (MBMS), a 3GPP industry standard, into their 3G access portfolio. MBMS will initially offer the possibility to simultaneously broadcast - or multicast - a limited number of TV channels. The evolution to next generation access technology including MIMO-OFDM (Nortelís HSOPA solution) is planned to unleash the capabilities of MBMS allowing the multicast of a far higher number of TV channels.

In addition, Nortel intends to demonstrate how mobile operators can take advantage of Nortelís DVB-H solution through its integration into their existing cellular infrastructure. This integrated DVB-H solution offers increased in-building penetration for improved consumer experience, facilities to multiplex both local and national content, and a common billing and network management solution.

To highlight the possibilities and enhanced user experience of Mobile TV, LG-Nortel UMTS and HSDPA customer, SK Telecom will be present on Nortelís booth demonstrating its digital mobile multimedia broadcasting service available today in South Korea.

Nortelís full choice of Mobile TV solutions and demonstrations can be seen at the Nortel booth in hall 8, stand A06, 3GSM World Congress, Barcelona from today, February 13 through February 16.

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 worldís most critical information. Our next-generation technologies, for both service providers and enterprises, span access and core networks, support multimedia and business-critical applications, and help eliminate todayís barriers to efficiency, speed and performance by simplifying networks and connecting people with information. Nortel does business in more than 150 countries. For more information, visit Nortel on the Web at For the latest Nortel news, visit

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 Nortelís restatements and the impact any resulting legal judgments, settlements, penalties and expenses could have on Nortelís results of operations, financial condition and liquidity, and any related potential dilution of Nortelís common shares; the findings of Nortelís independent review and implementation of recommended remedial measures; the outcome of the ongoing 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 Nortelís previously announced or filed financial results and resulting negative publicity; the existence of material weaknesses in Nortelís internal control over financial reporting and the conclusion of Nortelís management and independent auditor that Nortelís internal control over financial reporting is ineffective, which could continue to impact Nortelís ability to report its results of operations and financial condition accurately and in a timely manner; the impact of Nortelís and NNLís failure to timely file their financial statements and related periodic reports, including Nortelís inability to access its shelf registration statement filed with the United States Securities and Exchange Commission (SEC); the impact of management changes, including the termination for cause of Nortelís former CEO, CFO and Controller in April 2004; the sufficiency of Nortelís restructuring activities, including the work plan announced on August 19, 2004 as updated on September 30, 2004 and December 14, 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 Nortelís customers; increased consolidation among Nortelís customers and the loss of customers in certain markets; fluctuations in Nortelís operating results and general industry, economic and market conditions and growth rates; fluctuations in Nortelís cash flow, level of outstanding debt and current debt ratings; Nortelís monitoring of the capital markets for opportunities to improve its capital structure and financial flexibility; Nortelís ability to recruit and retain qualified employees; the use of cash collateral to support Nortelís normal course business activities; the dependence on Nortelís subsidiaries for funding; the impact of Nortelís defined benefit plans and deferred tax assets on results of operations and Nortelís cash flow; the adverse resolution of class actions, litigation in the ordinary course of business, intellectual property disputes and similar matters; Nortelís dependence on new product development and its ability to predict market demand for particular products; Nortelís 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 Nortelís customers and the impact of customer financing and commitments; general stock market volatility; negative developments associated with Nortelís supply contracts and contract manufacturing agreements, including as a result of using a sole supplier for a key component of certain optical networks solutions; the impact of Nortelís 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; any undetected product defects, errors or failures; the future success of Nortelís strategic alliances; and certain restrictions on how Nortel and its president and chief executive officer conduct business. 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.


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