Cable & Wireless West Indies, Nortel Networks Sign US$100 Million GSM, GPRS, EDGE Agreement; Wireless Data Network to Enable Advanced Wireless Services, IP VPN to 12 Countries.

Business Editors & High Tech Writers

KINGSTON, Jamaica--(BUSINESS WIRE)--Nov. 5, 2002

Cable & Wireless West Indies, the leading telecom operator in the Caribbean, has selected Nortel Networks (NYSE:NT)(TSX:NT.) to be the exclusive infrastructure provider for its GSM (Global System for Mobile Communications) and GPRS (General Packet Radio Service) Wireless Data Network under an agreement estimated to be worth approximately US$100 million over three years. The network is expected to serve customers in 12 countries in the region, including Jamaica, Cayman Islands and Barbados.

Under the agreement, Nortel Networks will provide a comprehensive Nortel Networks Univity packet core network and radio access solution to seamlessly migrate Cable & Wireless existing TDMA (time division multiple access) network in the Caribbean to a GSM architecture. The network integration includes implementation of GPRS and EDGE (Enhanced Data GSM Evolution)-ready technology to support migration to 3G (third generation) wireless services. Phase 1 of the deployment is expected to be complete by the second quarter of 2003.

This new infrastructure will position Cable & Wireless to significantly increase voice capacity, to expand and enhance roaming capabilities across the entire Caribbean region, and to improve international roaming. It will support advanced wireless data services, including Web browsing, e-mail access, and personal messaging, as well as other features like local number portability. The new infrastructure will also enable Cable & Wireless to offer wireless IP (Internet Protocol) VPN (Virtual Private Networking) services, allowing its enterprise customers to securely access their corporate networks virtually `anytime, anywhere.'

"Cable & Wireless is committed to providing the best available services to its customers in the Caribbean, and now, with the migration to a next generation wireless data network, we can take it one step further," said Errald Miller, chief executive officer, Cable & Wireless West Indies. "We are confident that Nortel Networks vast experience in deploying next generation wireless data networks will enable us to provide not only the most advanced services to our customers, but also the most secure and reliable wireless experience."

"In addition to providing a smooth migration path from TDMA through GSM to EDGE and enabling Cable & Wireless to offer new, revenue-generating wireless data services to their customers, Nortel Networks Univity solutions will position them to evolve their network cost-effectively by leveraging previous investments," said Peter MacKinnon, president, Wireless Americas Sales, Nortel Networks.

"This agreement celebrates our long-standing relationship with Cable & Wireless and reaffirms Nortel Networks 30-year commitment to the Caribbean, where we continue to deploy the most advanced networks with our customers," said Winston Estridge, president, Nortel Networks Caribbean and Latin America.

Nortel Networks has worked with Cable & Wireless in the Caribbean for over three decades and has been providing the operator with advanced wireless networking equipment for the last several years. Nortel Networks has deployed 80 GSM/GPRS networks in more than 50 countries and is supplying GSM/GPRS systems to enable Wireless Data Networks services for more than 30 operators, including T-Mobile, mm02 and Orange in Europe; AT&T Wireless Services, Cingular Wireless and T-Mobile USA in the United States; China Mobile; Chungwha Telecom in Taiwan; and Telstra in Australia.

Cable & Wireless West Indies is owned by Cable & Wireless plc as part of a major global telecommunications business with revenue of over (pound)5.9 billion (US$8.6 billion) in the year to 31 March 2002 and customers in 80 countries and consists of two core and complementary divisions: Cable & Wireless Regional and Cable & Wireless Global. Cable & Wireless Regional offers a full range of telecommunications services in 33 countries around the world. Cable & Wireless Global's focus is on IP (internet protocol) and data services and solutions for business customers. It has developed advanced IP networks and value-added services in the US, Europe and the Asia-Pacific region in support of this strategy. With its financial strength and the capability of its global IP infrastructure, Cable & Wireless holds a unique position in terms of global coverage and services to business customers.

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.

Nortel Networks, the Nortel Networks logo, the Globemark and Univity are trademarks of Nortel Networks.