12,000km Optical Network Evolution Delivers Increased Capacity for Service Providers
STOCKHOLM, SWEDEN--(Marketwire - October 08, 2007) - Banverket ICT (Information and Communication Technology), one of Sweden's largest suppliers of network capacity, is enabling Sweden's cable TV and other service providers, to deliver new multimedia services across the country with a Nortel(1) (TSX: NT)(NYSE: NT) next-generation optical network solution.

The Nortel solution creates an adaptive, all-optical intelligent network for Banverket ICT that increases network capacity and provides greater flexibility for the rapid introduction of new revenue-generating communications service. The solution also helps reduce Banverket ICT's network operation expense and capital expenditure.

"We've had a continuing relationship with Nortel since 1994 when they introduced the 2.5 Gbps optical solution in Sweden and in 1998 we installed the first Nortel wavelength system in our network," said Thomas Sjostrand manager technical and network strategy at Banverket ICT. "We first saw Nortel's Common Photonic Layer and Optical Multiservice Edge 6500 solution demonstrated at a Nortel Advanced Technology Summit in Ottawa and were excited about the opportunities it presented. Competition in the Swedish telecom market is tough, and this new platform gives us the chance to introduce cutting-edge communications services without incurring massive infrastructure costs."

Banverket ICT is a subsidiary of Banverket, the authority responsible for Sweden's railways and providing services such as signaling, track radio and other communications requirements to the railway service. It also offers broadband-based services to external customers delivered by its transport and communications network that runs along the length of the 12,000 km rail network.

"Nortel is focused on ensuring that long-term customers keep their competitive edge by being able to deliver more services in a simpler and cost-effective manner," said Philippe Morin, president Metro Ethernet Networks, Nortel. "The solution for Banverket ICT is a great example of what can be achieved by staying close to our customers and making sure they know what solutions are available to support their growing business."

The Nortel solution evolves Banverket ICT's current infrastructure from its original Nortel 10 Gbps DWDM network to one based on Nortel's next-generation Common Photonic Layer (CPL) and Optical Multiservice Edge 6500. The network upgrade with Nortel's CPL provides a self-optimizing transport for cost-effective metro, regional and long-haul networks. The Optical Multiservice Edge 6500 is a convergence optical platform that efficiently supports TDM, data, and wavelength services. Used together, these products from Nortel's Metro Ethernet Networking portfolio provide a smooth migration to a reliable and scalable Ethernet infrastructure with minimal infrastructure costs. The new optical layer leverages eDCO (electronic Dynamically Compensating Optics) enabled DWDM transponders to manage dispersion compensation electronically and together with eROADM (enhanced Reconfigurable Optical Add Drop Multiplexer) enables seamless 'optical bypass' for Express wavelengths and optical branching for super-fast connections to anywhere.

Nortel's Metro Ethernet Networking solutions are focused on leveraging Nortel's leadership in optical and carrier data to drive presence in super-fast Ethernet networks. These next-generation transport networks are essential for supporting the explosion of network traffic fueled by new consumer trends and business applications, including bandwidth-hungry applications such as video.

About Nortel
Nortel is a recognized leader in delivering communications capabilities that make the promise of Business Made Simple a reality for our customers. Our next-generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel's technologies are designed to help eliminate today's barriers to efficiency, speed and performance by simplifying networks and connecting people to the information they need, when they need it. Nortel does business in more than 150 countries around the world. For more information, visit Nortel on the Web at www.nortel.com. For the latest Nortel news, visit www.nortel.com/news.

Certain statements in this press release may contain words such as "could", "expects", "may", "anticipates", "believes", "intends", "estimates", "targets", "envisions", "seeks" and other similar language and are considered forward-looking statements or information under applicable securities legislation. These statements are based on Nortel's current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which Nortel operates. These statements are subject to important assumptions, risks and uncertainties, which are difficult to predict and the actual outcome may be materially different from those contemplated in forward-looking statements. For additional information with respect to certain of these and other factors, see Nortel's Annual Report on Form10-K, Quarterly Reports on Form 10-Q and other securities filings with the SEC. Unless otherwise required by applicable securities laws, Nortel disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

(1)Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks.

Contacts:
Nortel
Alison Steel
+44 1628 432597
Email: asteel@nortel.com