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Nortel Wins US $935 Million Contract from Xfera

[Markham, CANADA] Xfera has selected Nortel Networks as the primary supplier of Wireless Internet infrastructure and services for its third generation (3G) Universal Mobile Telecommunications System (UMTS) network in Spain for an estimated US $935 million over three years.

UMTS is designed to provide unconstrained access to information, e-mail, e-business, real-time video and other Wireless Internet services through a variety of personal, portable devices.

Founded in April 2000, Xfera is an independent Spanish operator of third generation UMTS mobile Telecommunications.

Under Xfera's plan, high performance Wireless Internet solutions from Nortel Networks will deliver -- on a turnkey basis -- the IP core network and 50 percent of the radio access, along with a range of other services which will start up its network in Madrid, southern Spain, the Canary Islands, and much of northeastern Spain.

This is the third major UMTS infrastructure award in Europe for Nortel following BT (UK) and Airtel (Spain), giving it one of the leadership positions in the European wireless infrastructure market with estimated awards totaling over US $1.8 billion.

Wireless Internet services based on UMTS capabilities are expected to be generally available in many Western European countries by 2002 in a market which industry analysts expect to reach US $70 billion by 2003.

The Nortel UMTS solution includes its e-mobility Internet Base Stations for wide area radio coverage, packet-based core networks featuring Nortel Passport multiservice switches, Nortel Preside network and services management, Nortel Shasta services management, and transmission equipment.

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