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

To: Kenneth E. Phillipps who wrote (2717)	5/18/1999 8:37:00 AM
From: Chris Stovin	Read Replies (1) \| Respond to of 14638

Company Press Release SOURCE: Nortel Networks Corporation BT's Spanish Subsidiary and Nortel Networks to Build the World's Largest Internet Telephony and Multimedia Network MADRID, Spain, May 18 /PRNewswire/ -- BT and Nortel Networks (NYSE and Toronto: NT - news news) today announced that BT's Spanish subsidiary plans to build the world's largest national Internet telephony and multimedia network. The network will use the latest Internet Protocol (IP) technology from Nortel Networks and will be capable of supporting more customers than any other existing national IP telephony network in the world. It will form part of a multi-million dollar investment by BT in Spain. Pat Gallagher, BT's European director, said: ''BT is committed to help grow the Spanish communications market. We have already invested more than US$640 million in our various fixed, mobile and Internet interests, and plan to spend at least an additional US$970 million over the next ten years. ''The new network will enable BT to adapt rapidly to future developments, offer new services more quickly and economically than in-country competitors, and will ensure our Spanish customers receive the most advanced communications in the world.'' The network will provide national coverage from 12 main nodes this year, supporting many million potential customers. BT plans to expand the network by 27 main nodes within three years. From early next year, BT will offer residential and business customers a range of advanced IP telephony services including direct and indirect dial facilities, freephone and virtual private networks (VPNs) applications. The company will then extend its service range into value-added and other new multimedia services as the business develops. These services will be developed and marketed through BT in Spain, which obtained a full operating license when the market opened to competition in December last year. The network will offer Spanish customers' increased flexibility and quality of service, and will be the only IP-based telephony service which supports full interoperability with traditional telephone networks. It will also provide BT with substantial operating efficiencies and economies of scale over legacy networks. Clarence Chandran, president, Carrier Packet Solutions, Nortel Networks said: ''Nortel Networks is a leader with the experience and resources to develop the access and core network infrastructure for converged Internet and telephony services.'' Teofilo del Pozo, general manager of BT in Spain said: ''The dedicated Internet telephony network means that Spanish customers will be among the first in the world to benefit from products and services tailored to meet increasing demands for greater speed, quality and flexibility. We are delighted to be spearheading BT's global IP strategy.'' BT in Spain (BT Telecomunicaciones S.A.), wholly owned by BT, operates Spain's second largest data communications network. Since its launch in 1994, the company has won more than 1,100 corporate customers, including many of Spain's leading companies. Last December it was awarded a 'type B' telephony license to offer fixed telephony services in Spain. These will complement the company's present range of advanced corporate communications services and enable it to offer a full range of services. According to estimates by Probe Research, the total installed base of voice over Internet technology (also known as voice-over-IP, or VoIP) by service providers is under 200,000 ports today, making BT's network in Spain the largest VoIP network in the world. The network will support full interoperability with the traditional telephone network, offer identical features and voice quality as existing services, and will support similar numbers of subscribers as today's telephone network. The service will be offered over a high speed optical network connected to around 75 CVX 1800 access switches from Nortel Networks, the majority of which will be installed in the next 24 months. The CVX switches are controlled by open and extensible Java based software at the heart of Nortel Networks' Internet telephony strategy. 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, Vancouver, and London stock exchanges. Nortel Networks had 1998 revenues of US$17.6 billion and has approximately 75,000 employees worldwide. Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include, among other things: the impact of price and product competition; the dependence on new product development; the impact of rapid technological and market change; the ability of Nortel Networks to integrate the operations and technologies of acquired businesses in an effective manner; general industry and market conditions and growth rates; international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; unanticipated impact of Year 2000 issues; and the impact of consolidations in the telecommunications industry. For additional information with respect to certain of these and other factors, see the reports filed by Nortel Networks with the United States Securities and Exchange Commission. Nortel Networks disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. SOURCE: Nortel Networks Corporation