Completel Selects Nortel Networks to Transition Network to VoIP  (email this article)

PARIS--(BUSINESS WIRE)--Sept. 23, 2004--Completel (ParisBourse:CPT) has signed an agreement with Nortel Networks (Company Profile, Past Stories, Case Studies) (NYSE:NT - News; TSX:NT - News) to transition its network to voice over IP (VoIP) technology. This strategic move toward VoIP along with data networks is expected to be a key driver of future growth for Completel and confirms its ambition to become the leading national operator for businesses. Market Ready

Based on increasing demand from businesses for integrated voice and data networks, as well as for value added IP (Internet Protocol) services, Completel has been preparing its evolution towards VolP for several months. Completel selected Nortel Networks for the following reasons:

Nortel Networks capacity as a world leader for voice network equipment to provide Completel with an unequalled experience in terms of VolP network deployment. Nortel Networks has been developing its global experience by providing VoIP technology to some of the largest operators in the world such as Verizon, Sprint, Hong Kong Broadband and Cable & Wireless. Nortel Networks long term partnership with Completel on voice networks that will simplify and safeguard the migration of the existing network towards this new technology. Based on this agreement, Completel will be able to offer a simple and rapid evolution of its services for its business clients.

"Nortel Networks is proud to have been chosen by Completel for this project," said Michel Clement, president and general manager, Nortel Networks France. "We fully support Completel's vision of moving its network toward 'all IP' while at the same time preserving their voice service capacity, which has been the basis of their success. This will help position them to reduce their operating costs and investment costs. And with their new next generation network, Completel will be able to launch an entire series of new innovative voice and multimedia services, thus strengthening their position as a leader in the French market."

Intensive Deployment for Immediate Benefits
The network roll-out will start in the fourth quarter of 2004 so that new service offers will be available at the beginning of 2005.

The new complete and innovative VolP solutions will allow business customers to benefit from:

More economical voice and data solutions that are easier to implement and control thanks to convergence between voice and data networks.

Homogenous levels of services of an identical quality whatever the size of the sites and their geographical situation. This unique IP network will be based on fibre optic access for main sites and on DSL access for the other sites on a national scale. It will support the following services:

'basic' voice services
value-added IP Centrex-type services (PBX outsourcing), virtual call centers, video conferencing, etc. future multimedia services such as instant unified messaging services, multimedia work stations, etc. "This technological progress allows the geographical extension of our market to be addressed throughout the country beyond our main land fibre optic networks," said Jerome de Vitry, president and chief executive officer, Completel. "It also allows a more significant part of the needs of our existing and future clients to be addressed. In parallel, the investment in VolP will be quickly made more profitable. The incremental investments required by our growth will be more limited in future with the VolP technology than they were with the TDM technology."

About Completel
Completel is an operator specialising in Very High Speed telecom solutions for companies, which is characterised by the direct linkage by fibre optics of the company to the Completel network giving access to a full range of Very High Speed services in telephony, data, Internet and hosting. Being a national operator Completel addresses medium and large-sized companies in the private and public service, operators and suppliers of telecommunications services. Completel is the first alternative operator of mainland fibre optic networks in France, both through the number of towns covered and by the total length of its networks and the number of sites linked up. .

Completel is a member of the following index of Euronext: SBF 250, MIDCAC, IT CAC, IT CAC 50, and the Next Economy segment.

For more information, visit www.completel.com.

About Nortel Networks
As a global innovation leader, Nortel Networks enriches consumer and business communications worldwide by offering converged multimedia networks that eliminate the boundaries among voice, data and video. These networks use innovative packet, wireless, voice and optical technologies and are underpinned by high standards of security and reliability. For both carriers and enterprises, these networks help to drive increased profitability and productivity by reducing costs and enabling new business and consumer services opportunities. Nortel Networks does business in more than 150 countries. For more information, visit Nortel Networks 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.

Use of the terms "partner" and "partnership" does not imply a legal partnership relationship between Nortel Networks and any other party.