Nortel Networks to Supply High Speed, Broadband Wireless Network to Bell Canada International Subsidiary in Venezuela.

MONTREAL--(BUSINESS WIRE)--Sept. 16, 1999--

BCI(NASDAQ:BI) (ME:BI.) (TSE:BI.) (ME:BCICF.) (TSE:BCICF.) Bell Canada International Inc. (BCI) today announced that its Venezuelan subsidiary has signed an agreement with Nortel Networks for the supply of a Nortel Networks Reunion Wireless LMDS network to deliver high-speed, broadband wireless services in Venezuela.

Mr. Joseph Pilcher, President & CEO of BCI's Venezuelan subsidiary, which intends to offer services under the brand name "BCI Genesis", stated: "Venezuela was the first country in the world to license LMDS spectrum and remains at the forefront of broadband wireless developments world-wide. It is our intention to provide the latest broadband data services at affordable prices, helping our customers bring down their telecommunications costs in line with their counterparts in North America."

The company is deploying a Broadband wireless network commencing with the cities of Caracas and Valencia, the two most important corporate business markets in Venezuela. The company holds a licence for 600 megahertz of spectrum in the 24/25 GHz band, which will allow it to provide a private network offering Internet, voice, video, data and other value-added services nation-wide.

Broadband wireless access technology enables service providers to utilize one of the fastest, most cost-effective methods of delivering multimedia communications. Using Local Multipoint Distribution System (LMDS) radio spectrum, the Nortel Networks Reunion product can deliver data, voice, video and Internet services on the same high-speed, ATM-based network.

The Nortel Networks Reunion portfolio uses radio base station equipment to interface with wireline backbone networks, transmission, customer premise equipment and integrated network management. The Reunion closes the cost and capacity gap between more expensive, high-speed fiber trunks and lower-bandwidth copper cable solutions, providing "last mile" access from the local network to customer premises for high-bandwidth wireless ATM service, using point-to-multipoint radio operating at frequencies ranging from 2 GHz to 42 GHz.

Nortel Networks will supply BCI's Venezuelan venture with a complete network solution including design, delivery, build-out and commissioning services. The network will feature Nortel Networks Passport(tm) ATM switching in addition to the Reunion(TM) broadband wireless access equipment.

"The Nortel Networks broadband LMDS ATM network and IP feature-rich billing system will allow us to participate in the growth in IP-based services, and will leave us well positioned to capitalize on the liberalization of the Venezuelan telephony market scheduled to take place next year. As well, the ability of Application Service Providers to place their applications on our network will fuel the growth of e-commerce in Venezuela," added Mr. Pilcher.

"This is a significant contract for the deployment of broadband wireless access systems in emerging markets, and the first such contract in Venezuela," said Martha Bejar, executive vice president, Emerging Carrier Solutions for Nortel Networks CALA (Caribbean and Latin America). "It clearly demonstrates Nortel Networks leadership in providing the latest Unified Networks(TM) solutions spanning voice and data in Latin America, and makes us a front-line provider in Venezuela" she added.

Bell Canada International is in the business of building and developing world-class communications companies in markets outside Canada, with a focus on Latin America and the Asia-Pacific region. The company's affiliated operations provide a range of high quality and innovative services to approximately 4.5 million subscribers in eight countries, primarily via digital, wireless networks. A subsidiary of BCE Inc., Canada's largest communications company, BCI is listed on the Montreal and Toronto stock exchanges under the symbol BI, and on the Nasdaq national market under the symbol BCICF.

Nortel Networks delivers value to customers around the world through Unified Networks(TM) solutions, spanning mission-critical telephony and IP-optimized networks. Customers include public and private enterprises and institutions; Internet service providers; local, long-distance, cellular and PCS communications companies, cable television carriers, and utilities.

Nortel Networks's common shares are listed on the New York, Toronto [NYSE/TSE:NT], Montreal and London stock exchanges. Nortel Networks had 1998 revenues of US$17.6 billion and has approximately 70,000 employees world-wide.