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First Commercial 3G UMTS Launch in US

21st July,2004

US : AT&T Wireless Services and Nortel Networks have launched North America's first commercial UMTS (Universal Mobile Telecommunications System) wireless networks, including the first to operate at the 1900 MHz radio frequency -- a requirement for North America.

Inset is Pascal Debon, president, Wireless Networks, Nortel Networks quoted below.

These networks -- launched in Detroit, Phoenix, San Francisco and Seattle -- allow AT&T Wireless to increase capacity for voice and data traffic, reduce costs and increase data speeds for delivery of sophisticated new mobile services. Using Nortel Networks core and radio access UMTS wireless solutions, they will also provide AT&T Wireless subscribers and enterprise customers in these four markets with high speed VPN (Virtual Private Network) access, multimedia audio and video applications, and advanced location-based and m-Commerce features.

"This launch is a major milestone in the North American telecommunications sector," said Eric Updyke, vice president -- 3G Program Management, AT&T Wireless. "Nortel Networks has been a significant contributor in our plans to launch the most advanced network in the United States using the most widely used 3G (third generation) standards and bringing a new generation of mobile multimedia services to customers."

"Nortel Networks has successfully deployed UMTS across Western Europe, and a key factor for world-class customers like AT&T Wireless choosing solutions from Nortel Networks has been our reputation for speed and quality of deployment coupled with leading network performance," said Pascal Debon, president, Wireless Networks, Nortel Networks. "The AT&T Wireless launch is an important step in advancing 3G mobile services here in the United States and we're pleased to be taking a leadership role in making this a reality."

The networks will provide AT&T Wireless customers with average data speeds from 220 to 320 kilobits per second (kbps) -- six to eight times faster than dial-up -- and up to 384 kbps under optimal conditions.

The new networks will use AT&T Wireless' existing converged core -- supplied by Nortel Networks -- to add UMTS to existing GSM, GPRS and EDGE capabilities.

UMTS is a low-cost alternative for service providers seeking to address growing demand in capacity for voice and data services. Combined with GSM, GPRS and EDGE, UMTS gives AT&T Wireless more flexibility in managing its network to ensure capacity in high-traffic areas.

Nortel Networks has been a supplier of GSM/GPRS/EDGE and 3G networking gear for AT&T Wireless' network since 2000. Nortel Networks is AT&T Wireless' supplier of GSM, GPRS and EDGE core networking equipment.

Nortel Networks is deploying UMTS with many of the world's leading operators, including Vodafone, T-Mobile, Orange, mm02, Hutchison Group and now AT&T Wireless.

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.

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