BaykalWestcom Selects Nortel Networks for Russian Wireless Data Network; Plans to Expand GSM/GPRS Network Coverage, Introduce Data Services Across Siberia.

Business Editors/High-Tech Writers

MOSCOW--(BUSINESS WIRE)--Sept. 3, 2003

BaykalWestcom, one of the leading wireless operators in Russia, has extended an existing wireless data network supply agreement with Nortel Networks (NYSE:NT)(TSX:NT) to include network equipment and services for expansion across portions of Siberia.

Nortel Networks is the sole supplier of GSM (Global System for Mobile Communications) and GPRS (General Packet Radio Service) network equipment and professional services for BaykalWestcom.

The network upgrades will position BaykalWestcom to introduce text messaging, Internet access, e-mail with attachments, and other wireless data services in the region, and to increase network capacity to accommodate up to 180,000 subscribers. The new infrastructure will also enable BaykalWestcom to drive reduced operating costs and to enhance quality of service.

Deployment is scheduled to begin in September 2003 with completion by year end.

"Our relationship with Nortel Networks enables BaykalWestcom to upgrade and expand our network in a very cost-effective and timely manner while leveraging our previous network investments," said Vladimir Shapovalov, general manager, BaykalWestcom. "The new GPRS network will allow us to increase our coverage areas and compete for new subscribers, as well as to launch a new era of wireless data services that can generate new revenues."

Nortel Networks GSM infrastructure equipment is designed to support next generation GPRS, EDGE (Enhanced Data for GSM Evolution), and 3GPP (Third Generation Partnership Project) Release 4 BICN (Bearer Independent Core Network) functions through modular upgrades. This will help position service providers like BaykalWestcom to reduce the cost of migrating to new technology by making use of existing infrastructure and eliminating the need for replacement of radio base station and core network equipment.

"No other infrastructure provider can match our portfolio and expertise across packet core networking and high-capacity radio access," said Christine Landrevot, president and general manager, Russia and North Eastern Europe, Nortel Networks. "Nortel Networks GPRS core network equipment provides unique, built-in IP (Internet Protocol) capabilities to ease integration of corporate and security services while supporting advanced new data services for mobile Internet access and e-mail."

Nortel Networks has provided BaykalWestcom with wireless infrastructure equipment and network engineering and consulting services since 1998. Deployments announced today will leverage BaykalWestcom's existing GSM network, which was also deployed by Nortel Networks, and include products from Nortel Networks radio base station, base station controllers, SGSN and GGSN portfolios.

Nortel Networks has deployed 80 GSM/GPRS networks in more than 50 countries. Nortel Networks is working on numerous UMTS (Universal Mobile Telecommunications System) network deployments, many of which are expected to be in service in 2003. Nortel Networks has extensive experience in deploying and tuning large-scale CDMA networks, and in using IP technology to create enhance operating efficiency for wireless network operators. Nortel Networks was the first -- and is still the only -- infrastructure provider to launch live networks across all advanced radio access technologies (UMTS, GPRS, CDMA).

Nortel Networks has been active in the Russian market since 1992. Its Russian customers range from businesses and government institutions to wireless and fixed line operators.

Nortel Networks is an industry leader and innovator focused on transforming how the world communicates and exchanges information. The Company is supplying its service provider and enterprise customers with communications technology and infrastructure to enable value-added IP data, voice and multimedia services spanning Wireless Networks, Wireline Networks, Enterprise Networks, and Optical Networks. As a global company, Nortel Networks does business in more than 150 countries. More information about Nortel Networks can be found on the Web at www.nortelnetworks.com.

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