Nortel Networks and Airtel Movil S.A. deliver Unified Wireless/Wireline Network in Spain
Network provides Innovative Internet Telephony Services;

Optimized for Wireless Internet services of the future

MADRID, Spain -- Nortel Networks* [NYSE/TSE: NT] has been

selected by Airtel Movil S.A. to supply the world's first

converged wireless/wireline packet network worth an

estimated US$50 million over the next two years. The network

will be deployed across Spain's 50 provinces including the

islands and will provide innovative Internet Telephony and

Wireless Internet services.

This award represents a paradigm shift for Airtel. The

company is evolving both their wireless and wireline

networks from a circuit to a packet infrastructure optimised

for advanced Internet services.

"The solution from Nortel Networks delivers the wireless and

wireline convergence we require to offer a comprehensive

service set to consumers and businesses in Spain," said

Ignacio Galán, Chief Operating Officer, Airtel Movil S.A..

"We actively sought a vendor with experience in both

Internet Telephony and Wireless Internet solutions who could

collaborate with us in making this significant transition in

our business strategy."

Airtel is positioning themselves to take advantage of the

latest technological developments imminent in the mobile

marketplace - second and third generation mobile services

which use GPRS (General Packet Radio Service) and UMTS

(Universal Mobile Telephony Service) technologies.

The Passport* 8780 Packet Voice Gateway ATM switch, launched

in Europe today, was key to Nortel Networks' success. As

part of Nortel Networks gateway portfolio of Internet

Telephony solutions, the Passport 8780 provides carrier

class voice and Internet services over an ATM network. It is

also the gateway linking the ATM network and the GSM

wireless network. By employing AAL2, a 3rd generation mobile

standard which supports the new Wireless Internet services

of the future, the Passport 8780 ensures Airtel is ready for

the future.

The contract also includes Passport 7480 ATM switches,

Nortel Networks' ICE Call Server, Universal Signalling

Point, Integrated Network Management and assorted

Professional Services.

Airtel Movil S.A. has been offering mobile communications

services to Spanish users since October 1995. Since that

time, Airtel has completely transformed itself into a major

telecommunications carrier. Since May 1999, Airtel has also

been providing access to the Internet and fixed telephony

services. Airtel has over 3,820,000 customers in Spain.

Nortel Networks delivers value to customers around the world

through Unified Networks* solutions, spanning

mission-critical telephony and IP-optimized networks.

Customers include public and private enterprises and

institutions; Internet service providers; local,

long-distance, cellular and PCS communications companies,

cable television carriers, and utilities.

Nortel Networks' common shares are listed on the New York,

Toronto, Montreal and London stock exchanges. Nortel

Networks had 1998 revenues of US$17.6 billion and has

approximately 70,000 employees worldwide.

Notes to Editors

Passport 8780 Voice Gateway Switch

Nortel Networks Passport 8780 delivers carrier-grade voice

quality, network availability and reliability, as well as

industry-leading density of approximately 3,000 simultaneous

voice calls on a single shelf. With the Passport 8780

Service Providers can take traffic off TDM networks and

place it over ATM-based packet networks while maintaining

carrier voice quality and service transparency. PSTN

congestion can be reduced without Service Providers having

to purchase additional tandem switches or facilities.

The Passport 8780 utilises the ATM Adaptation Layer 2 (AAL2)

standards that are optimised for telephony over ATM

interworking. With advanced voice processing features,

including speech compression, silence detection, and silence

suppression, the Passport 8780 can be configured to provides

carriers with more than 66% bandwidth savings. Designed to

support open standards, the Passport 8780 interoperates with

most PSTN voice switches and ATM switches.

In upcoming product releases the Passport 8780 will offer

switched services including support for SS7 ISUP protocols

and Voice over IP (VoIP). The Passport 8780 is part of

Nortel Networks' Internet Telephony portfolio - the broadest

portfolio of next generation Internet Telephony solutions to

wireline, wireless and cable service providers and

enterprises in order to simplify voice and Internet access

for businesses and consumers. The flexible approach meets

the explosive demand for voice and Internet services such as

voice over IP, multimedia applications, unified messaging

and virtual private networks.

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