TSTT, Nortel Networks to Build Next Generation Network in Trinidad and Tobago.

Business Editors/High-Tech Writers

PORT-OF-SPAIN, Trinidad and Tobago--(BUSINESS WIRE)--Feb. 17, 2004

New Voice over IP Infrastructure Expected to Accelerate Delivery

of Broadband Services, Advanced Voice, Data, Multimedia Applications

Telecommunications Services of Trinidad and Tobago Limited (TSTT) has selected Nortel Networks (NYSE:NT)(TSX:NT) to converge the operator's existing networks and build a single, high-capacity, next generation infrastructure based on IP (Internet Protocol) technology.

The new voice over IP network, expected to be in service in late spring 2004, will position TSTT to accelerate delivery of DSL and other advanced broadband voice, data and multimedia services to businesses and consumers in Trinidad and Tobago. Customers will eventually be able to personalize and customize applications like video calling, unified messaging, electronic document sharing and other collaborative tools.

"TSTT's commitment to customers in Trinidad and Tobago has always been to provide a broad array of advanced services that can enhance as well as simplify their day-to-day communications," said Samuel A. Martin, chief executive officer, TSTT. "We selected Nortel Networks based on their market leadership position and knowledge of our market and business requirements. We are confident we can rely on their expertise to help us evolve our network into a more advanced yet cost-effective infrastructure that will allow us to meet our customers' current and future needs."

Under a new supply agreement estimated at approximately US$33 million over two years, Nortel Networks will deploy a comprehensive packet-switched solution for TSTT, including Nortel Networks Succession Carrier voice over IP solutions and Multimedia Communications Portfolio. Nortel Networks will also implement a DSL solution for TSTT from its newly-expanded broadband access portfolio.

A voice over IP or packet-switched network allows voice to be 'broken' into packets and transported on a data network, maintaining the same voice quality and increasing capacity for additional broadband services. Nortel Networks voice over IP solutions also position service providers to simplify network management and reduce operating costs.

"Today's IP-based networks are clearly the new frontier in communications," said Norberto Milan, managing director, Caribbean region, Nortel Networks. "TSTT is taking confident steps into this new territory to offer its customers advanced services that can help increase functionality, mobility and productivity. TSTT shares our vision of eliminating boundaries and enriching communications. After 20-plus years, we continue to work closely with them to provide an advanced and reliable infrastructure to enhance the communications experience of their customers."

Implementation will begin immediately. This will include deployment of Nortel Networks Broadband Access Services Gateway 7700, Broadband Access Services Gateway 7500, Succession Communication Server (CS) 2000, Succession Media Gateway 9000, Multimedia Communication Server 5200, Nortel Networks Passport 8600 and 15000, Passport Packet Voice Gateway, and optical components from Nortel Networks OPTera portfolio.

Telecommunications Services of Trinidad and Tobago Limited is the sole licensed provider of telephone services in Trinidad and Tobago. The company is jointly owned by the Government of Trinidad and Tobago (51%) and Cable & Wireless (49%). Over the past five years TSTT's customer base has grown on average by 4.8% and stood at 327,000 lines as of December of 2003. Services provided include basic telephony, mobile (GSM & TDMA), Internet, lease lines and data services. The switching and transport infrastructure are both 100% digital. The transport network comprises primarily fibre optic based systems supported by microwave radio systems. Key customers include banking and insurance, petroleum and energy based industries, government and tourism.

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.

Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include, among other things: the sufficiency of our restructuring activities, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions; continued reductions in spending by our customers; fluctuations in operating results and general industry, economic and market conditions and growth rates; the communication by our auditors of the existence of material weaknesses in internal control; the ability to recruit and retain qualified employees; fluctuations in cash flow, the level of outstanding debt and our current debt ratings; the ability to meet the financial covenant in our credit facilities; the use of cash collateral to support our normal course business activities; the dependence on our subsidiaries for funding; the impact of our defined benefit plans and our deferred tax assets on our results of operations, cash flows and compliance with our financial covenant; the dependence on new product development and our ability to predict market demand for particular products; the ability to integrate the operations and technologies of acquired businesses in an effective manner; the impact of rapid technological and market change; the impact of price and product competition; barriers to international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; the impact of rationalization in the telecommunications industry; changes in regulation of the Internet; the impact of the credit risks of our customers and the impact of customer financing and commitments; stock market volatility generally and as a result of acceleration of the settlement date or early settlement of our purchase contracts; risks associated with a consolidation of our common shares; the impact of supply and outsourcing contracts that contain delivery and installation provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; the future success of our strategic alliances; and the adverse resolution of litigation, intellectual property disputes and similar matters. For additional information with respect to certain of these and other factors, see the most recent Form 10-Q and Form 10-K filed by Nortel Networks with the United States Securities and Exchange Commission. Unless otherwise required by applicable securities laws, Nortel Networks disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Nortel Networks, the Nortel Networks logo, the Globemark, Business Without Boundaries, Succession, Passport and OPTera are trademarks of Nortel Networks.