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.

Recent Nortel Networks activity is reviewed in:

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