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Nortel Enables New Rural Market SIP Access Solutions

8 February 2006

Nortel(*) (NYSE/TSX: NT) is helping rural carriers tap into the lucrative triple play services market by enabling new SIP fiber to the home (FTTH) and converged IP access solutions that help carriers deliver broadband data, video and a rich set of voice features to residential and business customers.


These solutions are enabled by Nortel's DMS-10 softswitch interoperating with products from Allied Telesyn and Pannaway Technologies. This gives rural carriers access to a new portfolio of revenue-generating services such as VoIP with E 911 lifeline calling, enhanced IP video and video on demand, ultimately increasing customer satisfaction and retention.


SkyLine Membership Corporation, which serves northwestern North Carolina and eastern Tennessee, is using the SIP FTTH solution consisting of Allied Telesyn's iMAP integrated Multiservice Access Platform and iMG intelligent Multiservice Gateway interoperating with Nortel's DMS-10 as part of its recently announced FTTH network deployment. This new FTTH infrastructure, using Allied Telesyn's IP Triple Play optimized Multiservice Gateways, will enable SkyLine to offer advanced IP video to its largely residential subscriber base, in addition to a wide variety of voice and high-speed data services.


"SkyLine has evolved with the communities we serve, taking the lead in identifying customer needs and offering innovative solutions - our fiber to the home initiative is a perfect example of this evolution," said John Dixon, SkyLine CEO. "Interoperability between Nortel and Allied Telesyn allows us to offer our customers new bundles of digital entertainment, voice, communication and information services with confidence, knowing that we can reliably provide our customers with the communications choices they need."


Empire Telephone will use the converged IP access solution consisting of Pannaway's Service Convergence Network (SCN(TM)) platform interoperating with Nortel's DMS-10 to offer IP video services, high-speed data and Primary Line VoIP with advanced calling features and guaranteed E 911 support to their customer base in 2006. Empire Telephone supports 8,400 access lines and covers over 320 square miles of service territory in western New York.


"As we evolve to VoIP, it is absolutely critical that we have the ability to provide advanced calling and safety features such as E911 lifeline support as well as new applications we can run on an application server. Interoperability between Nortel's DMS-10 and Pannaway's SCN will allow us to offer premier video and data services along with support for emerging applications such as HDTV and video on demand," Joseph Gottwald, CO engineer and ISP manager, Empire Telephone.


Allied Telesyn's iMG600 intelligent Multiservice Gateway portfolio and Pannaway's Personal Branch Gateway (PBG) and Broadband Access Switch (BAS) successfully completed interoperability testing with Nortel's SIP-enabled DMS-10.


Nortel's DMS-10 platform is the industry's most widely deployed voice switch, allowing independent service providers and rural market carriers to seamlessly advance their networks to a new cost-effective packet infrastructure at their own pace without expensive upgrades to the network. SIP-enabled enhancements on the DMS-10 gives service providers the ability to offer new revenue generating services such as primary or secondary line service over any broadband facility, mobility options with IP phones and clients, as well as service bundles such as VoIP coupled with the subscriber's existing broadband or long distance service.


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 world's most critical information. Serving both service provider and enterprise customers, Nortel delivers innovative technology solutions encompassing end-to-end broadband, Voice over IP, multimedia services and applications, and wireless broadband designed to help people solve the world's greatest challenges. Nortel does business in more than 150 countries. For more information, visit Nortel on the Web at www.nortel.com. For the latest Nortel news, visit www.nortel.com/news.


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 Nortel's restatements and the impact any resulting legal judgments, settlements, penalties and expenses could have on Nortel's results of operations, financial condition and liquidity, and any related potential dilution of Nortel's common shares; the findings of Nortel's 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 Nortel's previously announced or filed financial results and resulting negative publicity; the existence of material weaknesses in Nortel's internal control over financial reporting and the conclusion of Nortel's management and independent auditor that Nortel's internal control over financial reporting is ineffective, which could continue to impact Nortel's ability to report its results of operations and financial condition accurately and in a timely manner; the impact of Nortel's and NNL's failure to timely file their financial statements and related periodic reports, including Nortel's 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 Nortel's former CEO, CFO and Controller in April 2004; the sufficiency of Nortel's 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 Nortel's customers; increased consolidation among Nortel's customers and the loss of customers in certain markets; fluctuations in Nortel's operating results and general industry, economic and market conditions and growth rates; fluctuations in Nortel's cash flow, level of outstanding debt and current debt ratings; Nortel's monitoring of the capital markets for opportunities to improve its capital structure and financial flexibility; Nortel's ability to recruit and retain qualified employees; the use of cash collateral to support Nortel's normal course business activities; the dependence on Nortel's subsidiaries for funding; the impact of Nortel's defined benefit plans and deferred tax assets on results of operations and Nortel's cash flow; the adverse resolution of class actions, litigation in the ordinary course of business, intellectual property disputes and similar matters; Nortel's dependence on new product development and its ability to predict market demand for particular products; Nortel's 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 Nortel's customers and the impact of customer financing and commitments; general stock market volatility; negative developments associated with Nortel's 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 Nortel's 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 Nortel's 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.


For further information: Christie Blake, (978) 288-8439, christbl@nortel.com

Source: newswire


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