T-Mobile USA Awards Wireless Contract Extension to Nortel Networks

DALLAS and BELLEVUE, Wash., 27.08. 2004 11:34

Helps Deliver T-Mobile’s Get More® Promise to Its Customers by Enhancing Voice Quality and Coverage, Boosting Network Capacity, Reducing Operating Costs and Supporting New Enhanced Data Services
T-Mobile USA Awards Wireless Contract Extension to Nortel Networks

T-Mobile USA Inc., a wholly-owned subsidiary of T-Mobile International, the mobile arm of Deutsche Telekom AG [NYSE: DT], has awarded a wireless contract extension to Nortel Networks* [NYSE/TSX: NT] to provide GSM (Global System for Mobile Communications), GPRS (General Packet Radio Service), EDGE (Enhanced Data Rates for GSM Evolution) and packet core wireless data network upgrades and associated professional services.

The extension calls for Nortel Networks to deploy wireless network core and radio access products in strategic T-Mobile USA markets including New York, Chicago, Dallas, Denver, Detroit, Phoenix and Milwaukee. GSM/GPRS/EDGE-ready infrastructure will enhance T-Mobile USA’s network quality and capacity in strategic markets; and will enhance its ability to provide a common user experience across a portfolio of advanced mobile services like visual communications, two-way text messaging, instant messaging, Web browsing and gaming.

“The wireless network deployments will enable T-Mobile USA to leverage Nortel Networks presence across our national network to provide greater capacity and quality in a very cost-effective manner,” said Sue Swenson, chief operating officer, T-Mobile USA. “In addition to positioning us to support our growing subscriber base, Nortel Networks is helping us deliver on our Get More® promise to our customers and helping us ensure those customers have a consistent, reliable, quality experience.”

“We are excited to support T-Mobile USA in meeting the needs of its growing network and are pleased they continue to rely on Nortel Networks to deliver their Get More® promise to subscribers,” said Pascal Debon, president, Wireless Networks, Nortel Networks. “Our wireless solutions deliver carrier-grade reliability, enabling T-Mobile USA to reduce its capital and operating costs while empowering it to deliver a quality experience overall.”

Nortel Networks has supported GSM network planning and deployment for T-Mobile USA since the company’s inception as VoiceStream Wireless in 1995. Wireless data network infrastructure available for deployment by T-Mobile USA under the extended agreement will include products from Nortel Networks GSM/GPRS/EDGE radio access portfolio, Base Station Controllers (BSC) and circuit/packet core equipment including Mobile Switching Center/Call Server (MSC/CS) and Nortel Networks Alteon* Switched Firewalls and Application Switches. Nortel Networks is also the primary provider of Home Location Register (HLR) infrastructure for T-Mobile USA’s national wireless network.

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.

About T-Mobile USA, Inc.
Based in Bellevue, Wash., T-Mobile USA, Inc. is a member of the T-Mobile International group, the mobile telecommunications subsidiary of Deutsche Telekom AG (NYSE: DT). T-Mobile operates the largest GSM/GPRS 1900 voice and data network in the country, reaching over 253 million people including roaming and other agreements. In addition, T-Mobile operates the largest carrier owned Wi-Fi wireless broadband network in the country, available in more than 4,700 public access locations including Starbucks coffeehouses, Borders Books and Music, FedEx Kinko’s Office and Print Centers, Hyatt Hotels and Resorts, airports and selected American Airlines Admirals Clubs, Delta Air Lines Crown Rooms, United Airlines Red Carpet Clubs and US Airways Clubs. Through its Get More® promise, T-Mobile provides customers with more minutes, more features and more service. For more information, visit the company web site at www.t-mobile.com.

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 Alteon are trademarks of Nortel Networks.

Kontaktinformationen:

Jamie Moody
Nortel Networks
(972) 684-7167
moodyjam@nortelnetworks.com

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