Europe: Servei de Telecomunicacions d'Andorra (STA) has selected Nortel to provide a third generation (3G) UMTS (Universal Mobile Telecommunications System) network for delivery of broadband wireless services like e-mail, Web browsing, personalized content, video calls and conferencing to its customers in Andorra.

The network is expected to be fully available by May 2005 when Andorra will host the "Games of the Small States of Europe," a biennial competition between European countries with populations of less than one million.

"STA is committed to delivering new, innovative communications solutions to enhance the lives of our Andorran customers," said Xavier Palacios, general manager, STA. "Nortel's expertise and understanding of our requirements has clearly differentiated it as a strategic supplier for this third generation wireless network."

Nortel will provide STA with circuit and packet core 2G and 3G solutions as well as equipment for a small Universal Terrestrial Radio Access Network (UTRAN) pilot. Nortel will also provide STA with network planning and optimization and initial network start-up and operations support.

"STA was Nortel's first carrier customer in Iberia and today's announcement demonstrates the continued strength of our relationship," said Jordi Casamitjana, president, Iberia, Nortel. "This new contract confirms our networking strengths and our leadership position in building new generations of wireless networks that offer powerful services to consumers and businesses alike."

"As operators across the world finalize their 3G migration plans, more and more are turning to Nortel as a trusted 3G networking ally," said Peter MacKinnon, president, UMTS and GSM networks, Nortel. "Our recent string of 3G successes, including STA, demonstrates our expertise in wideband radio access and data networking and our real advantage in turning up these networks quickly and cost-effectively."

Nortel is deploying UMTS technology with leading operators across the globe. Nortel has extensive experience in deploying and tuning large-scale, code-based networks, and in using IP (Internet Protocol) technology to enhance operating efficiency for wireless operators.

Nortel has designed, installed and launched more than 300 wireless networks in over 50 countries. Nortel 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 STA

STA is a public corporation created in 1975 and owned by the Andorran Government, with full responsibility on the telecommunications services in Andorra, including the telephony, radiotelephony, data transmission and other complementary services within the State territory. It has also responsibility for the technical infrastructures required for TV and Radio signal distribution.