To: Eric L who wrote (18688 ) 3/9/2002 12:32:30 PM From: Eric L Respond to of 34857 re: Nortel PR on Cingular TDMA conversion to GSM GPRS EDGE & Increased Spectral Efficiency Nortel Networks will deploy radio spectrum innovations for Cingular that have been demonstrated to increase voice radio traffic capacity by as much as 120 percent with no reduction in quality of service. This spectral efficiency was realized in a Cingular market trial through implementation of Nortel Networks: * Fractional Frequency Reuse * Advanced Radio Frequency Algorithms. With introduction of Adaptive Multi-Rate Vocoders in terminals and network infrastructure, it is anticipated that Cingular can increase spectral efficiency by an additional 200 percent. Cingular estimates this technology will significantly reduce previously projected capital expenses for new radio equipment, as well as associated operational costs. >> Cingular Selects Nortel Networks For Gsm/Gprs Upgrades Nortel Press Release March 6, 2002Benchmark-Setting Spectrum Innovations to Drive Reduced Capital Outlays, Increase Savings Cingular Wireless, the nation’s second largest wireless carrier, has signed a supply agreement with Nortel Networks* [NYSE/TSE: NT] for GSM/GPRS infrastructure upgrades in the domestic United States and Puerto Rico, as well as innovations designed to help reduce Cingular capital and operating expenses. Under terms of an estimated US$500 million agreement signed in late November 2001, Nortel Networks will continue to support Cingular’s growth needs in its GSM networks in North Carolina, South Carolina, coastal Georgia and eastern Tennessee for three years. This will include deployment of radio, core switching and intelligent networking equipment to support GSM voice and GPRS data services. The agreement also includes a TDMA-to-GSM upgrade for the Cingular network in Puerto Rico. Network upgrades will support migration to EDGE, and position Cingular to drive new revenues with services such as Web browsing, location-based services, m-commerce, Virtual Private Networks (VPNs), personal messaging, music and video. Nortel Networks will also deploy radio spectrum innovations for Cingular that have been demonstrated to increase voice radio traffic capacity by as much as 120 percent with no reduction in quality of service. This spectral efficiency was realized in a Cingular market trial through implementation of Nortel Networks Fractional Frequency Reuse and Advanced Radio Frequency Algorithms. With introduction of Adaptive Multi-Rate Vocoders in terminals and network infrastructure, it is anticipated that Cingular can increase spectral efficiency by an additional 200 percent. Cingular estimates this technology will significantly reduce previously projected capital expenses for new radio equipment, as well as associated operational costs. “The customer is number one and Cingular is committed to enhancing the user experience,” said Bill Clift, chief technology officer, Cingular Wireless. “The spectrum utilization technology demonstrated by Nortel Networks will position Cingular to achieve its long-term cost goals and allow the company to provide for future voice and data growth demands.” “Growing demand for capacity, coupled with the need to deliver next generation data services, presents today’s wireless operators with tremendous spectral efficiency challenges,” said Phil Marshall, senior analyst, Wireless/Mobile Technologies, The Yankee Group. “Spectral efficiency is a key consideration, particularly for TDMA operators who are transitioning their networks to GSM. Technologies that stretch this resource provide significant cost advantages, as well as free up capacity to ensure the legacy TDMA network continues to operate properly during the transition.” The supply agreement broadens a long-standing relationship that began with Nortel Networks supplying wireless infrastructure to BellSouth Mobility and Southwestern Bell Wireless prior to the creation of Cingular. In October 2001, Cingular announced the commercial launch of a GPRS network in the southeastern United States using Nortel Networks infrastructure. In September 2001, Nortel Networks was selected to provide an ATM backbone for Cingular to connect 87 markets throughout the United States. Nortel Networks was also selected to install tandem switching equipment to create networking efficiencies and cut costs for Cingular in managing shared network arrangements with other operators. “Nortel Networks is empowering industry leaders like Cingular to find new ways to boost network investments and reduce costs while providing the highest quality of service for their subscribers,” said Pascal Debon, president, Wireless Networks, Nortel Networks. “We are stretching capacity and spectrum to new limits, and helping position operators to meet voice demand today and to capitalize on the ‘always on’ data opportunities of tomorrow.” In addition to radio base stations and switching equipment, Nortel Networks GSM solution for Cingular Wireless includes Nortel Networks Shasta* 5000 Broadband Service Node for secure delivery of new, IP-based services with quality of service, and Nortel Networks Passport* 15000 Multiservice Switch. Nortel Networks GSM overlay will support both the 1900 Mhz and 850 Mhz licenses owned by Cingular Wireless. The Puerto Rico upgrade is expected to result in the first complete TDMA-to-GSM overlay in the Cingular Wireless network. Cingular Wireless expects to begin offering commercial GSM services in Puerto Rico in the second quarter of 2002. << - Eric -