NuevaTel Bolivia Launches GSM Wireless Network Based on Nortel Networks Solution (email this article)

SANTA CRUZ, Bolivia--(BUSINESS WIRE)--Aug. 24, 2004--NuevaTel PCS de Bolivia S.A., a Western Wireless subsidiary, has launched a new GSM (Global System for Mobile Communications) digital wireless network in Santa Cruz, Bolivia using an infrastructure solution from Nortel Networks (Company Profile, Past Stories, Case Studies)(NYSE:NT - News; TSX:NT - News).

The new network positions NuevaTel to increase capacity, broaden coverage and offer improved GSM services under the 'VIVA GSM' brand. It also allows NuevaTel to offer enhanced regional and international roaming capabilities as well as a full suite of new enhanced voice and data services.

Nortel Networks replaced NuevaTel's previous GSM network with Nortel Networks GSM equipment to help NuevaTel drive reduced operating costs and increased voice capacity while enabling new data services. The network is GPRS (General Packet Radio Service) and EDGE (Enhanced Data rates for GSM Evolution) ready, positioning NuevaTel for a seamless evolution to third generation (3G) wireless technology.

"We are committed to providing our customers with leading-edge services and are very excited about improving our service offerings to our customers in Santa Cruz," said Pete Simpson, vice president, Western Wireless International. "We have selected Nortel Networks because of its proven expertise in deploying and evolving GSM networks around the world and its track record in helping service providers like us achieve our business goals."

"Relying on the strength of our comprehensive network portfolio, Nortel Networks works closely with regional operators like NuevaTel to bring the latest in advanced service options to its customers," said Kevin Taylor, vice president, Wireless Networks, CALA (Caribbean and Latin America), Nortel Networks. "This new GSM infrastructure positions NuevaTel to respond to current and future market needs for capacity and advanced applications, while significantly reducing operational costs."

NuevaTel PCS de Bolivia S.A. is majority-owned by U.S.-based Western Wireless, which over the past 12 years has deployed Nortel Networks analog and digital (TDMA, CDMA, GSM) wireless network solutions in the United States.

Nortel Networks has designed, installed and launched more than 300 wireless networks in over 50 countries. Nortel Networks was the industry's first supplier with wireless networks operating in all advanced radio technologies (GSM/GPRS/EDGE, CDMA2000 1X and 1xEV-DO, UMTS and WLAN), and is the only end-to-end provider of all next generation wireless solutions.

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 Wireless Networks, Wireline Networks, Enterprise 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 or www.nortelnetworks.com/media_center.

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 Nortel Networks independent review and planned restatement or revisions of its previously announced or filed financial results; the impact of the management changes announced on April 28, 2004 and August 19, 2004; the impact of the inability to meet Nortel Networks filing obligations on support facilities and public debt obligations; the sufficiency of Nortel Networks restructuring activities, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions; continued reductions in spending by Nortel Networks customers; fluctuations in Nortel Networks operating results and general industry, economic and market conditions and growth rates; the communication by Nortel Networks auditors of the existence of material weaknesses in internal controls; Nortel Networks ability to recruit and retain qualified employees; fluctuations in Nortel Networks cash flow, level of outstanding debt and current debt ratings; the use of cash collateral to support Nortel Networks normal course business activities; the dependence on Nortel Networks subsidiaries for funding; the impact of Nortel Networks defined benefit plans and deferred tax assets on results of operations and Nortel Networks cash flows; Nortel Networks dependence on new product development and its ability to predict market demand for particular products; Nortel Networks 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 in the telecommunications industry; changes in regulation of the Internet; the impact of the credit risks of Nortel Networks 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 of Nortel Networks purchase contracts; the impact of Nortel Networks 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; the future success of Nortel Networks strategic alliances; and the adverse resolution of litigation, investigations, intellectual property disputes and similar matters.

For additional information with respect to certain of these and other factors, see the most recent Form 10 Q/A and Form 10-K/A filed by Nortel Networks with the United States Securities and Exchange Commission. Unless otherwise required by applicable securities laws, Nortel Networks 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 Networks, the Nortel Networks logo, the Globemark and Business Without Boundaries are trademarks of Nortel Networks.