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Technology Stocks : Nortel Networks (NT) -- Ignore unavailable to you. Want to Upgrade?

To: Paul Lee who wrote (2247)	3/17/1999 11:07:00 AM
From: Paul Lee	Read Replies (1) \| Respond to of 14638

New Spanish Competitive Access Provider Milenio Redes Selects Nortel Networks Two-Year, US$100 Million Agreement Includes Reunion, Passport, DMS HANOVER, Germany, March 17 /PRNewswire/ - Milenio Redes, a new Madrid-based competitive carrier, has selected Nortel Networks (NYSE: NT/TSE: NTL) to supply a Unified Networks solution for delivery of high-speed, broadband wireless services in Spain under a two-year supply and services agreement estimated by the parties to be worth approximately US$100 million. Announced today in conjunction with CeBit, the agreement will be effective following a spectrum license award by the Spanish government and conclusion of vendor financing arrangements with Nortel Networks. Milenio Redes has placed initial orders against the supply agreement worth approximately US$50 million, and anticipates future expansion into international markets. Milenio Redes plans to provide broadband access network capacity to local carriers who require a reliable, high-performance ''last-mile'' solution to complement their own long distance backbone networks. Commercial service is scheduled to be available in five cities by April 2000, with further expansion throughout Spain to follow. With Nortel Networks' state-of-the-art broadband wireless access technology and complete, end-to-end network solution, we aim to be Spain's first true nationwide broadband local loop alternative to the incumbent's existing infrastructure,'' said Kiriako Vergos, co-founder and CEO of Milenio Redes. Breaking the incumbent's stranglehold on the local loop is perhaps the battle that we most need to win if Europe is going to see strong sustained growth in this sector,'' Vergos said. ''We believe that Milenio will play a crucial role in that battle.'' Nortel Networks will supply a complete network solution including design, delivery, buildout and commissioning. The Milenio Redes network will feature Nortel Networks Reunion broadband wireless access equipment, Nortel Networks Passport ATM switching and Nortel Networks DMS switching systems. Our Unified Networks solution allows Milenio Redes to deploy broadband network capacity fast, flexibly and cost effectively,'' said Cesar Cesaratto, president, Wireless Solutions, EMEA (Europe, Middle East and Africa), Nortel Networks. This is a significant contract for deployment of broadband wireless access systems in Europe and the first such contract in Spain,'' Cesaratto said. ''It clearly demonstrates Nortel Networks leadership in the broadband wireless access field. By embracing broadband wireless access technology, Spain is a leading market in encouraging local loop competition for the provision of broadband services.'' The Nortel Networks Reunion portfolio - the first and still the only broadband wireless access system in commercial service - closes the cost and capacity gap between more expensive, high-speed fiber trunks and lower-bandwidth copper cable solutions for small to medium-sized businesses. Nortel Networks Reunion systems provide ''last-mile'' access from the local network to customer premises for high-bandwidth wireless ATM service, using point-to-multipoint radio operating at frequencies ranging from 2 GHz to 42 GHz. Nortel Networks Passport switches use ATM technology to consolidate voice, data and video applications onto a single, high-performance network. This reduces or eliminates the need to maintain separate networks to meet demand for higher bandwidth services. Milenio Redes is the culmination of ''Proyecto Milenio,'' a project conceived to pioneer broadband wireless access solutions in Europe and elsewhere leveraging the vision and know-how of a group of individuals who are in turn backed by a number of top pedigree institutional investors including AB Asesores (Morgan Stanley)-Electra and Sintel, one of the world's leading telecoms network constructors.