TSTT Expands Wireless Network in Trinidad and Tobago with Nortel 3G Solutions.

PORT-OF-SPAIN, Trinidad and Tobago -- Upgrades with EDGE, R4 Technologies Expected to Reduce Costs, Enable Advanced Wireless Data Services

Telecommunications Services of Trinidad and Tobago, Limited (TSTT) is upgrading and expanding its wireless infrastructure with advanced third generation (3G) wireless solutions from Nortel (NYSE:NT) (TSX:NT). The project is expected to significantly expand coverage and improve quality of wireless voice and data services.

Under the terms of an agreement estimated at more than US$50 million over two years, Nortel will expand and upgrade TSTT's GSM/GPRS wireless network, deploying both core and access equipment, including base stations and switching. Nortel will also deploy an EDGE (Enhanced Data for GSM Evolution) solution from Nortel that will boost capacity for TSTT, and enable its subscribers to access a range of advanced, wireless services, including high-speed wireless Internet access, e-mail, corporate databases, mobile commerce (m-commerce) applications and multimedia messaging.

"The demand for sophisticated services in Trinidad and Tobago continues to drive our efforts to offer the most advanced service options to our subscribers," said Carlos Espinal, chief executive officer of TSTT. "Nortel has always provided us with industry leading solutions and support to build the kind of networks that can help us be successful. Their expertise in the deployment of GSM is critical in this upgrade of our wireless infrastructure in order to face new competition."

"It's a pleasure to work with such innovative operators like TSTT," said Kevin Taylor, vice president, Wireless Networks for Nortel in the Caribbean and Latin America. "The selection of our R4 and EDGE solutions will enable TSTT to enhance the communication experience of its subscribers by improving coverage, the overall quality and reliability of the network, as well as offering those advanced 3G services its customers are demanding."

The network upgrade also includes the addition of Nortel distributed Mobile Switching Centre (MSC) technology that builds on the next generation of 3GPP (Third Generation Partnership Project) Release 4 standards, commonly known as R4.

R4 networks enable more efficient use of transmission capacity. This is achieved by switching traffic locally at a media gateway removing the need for backhaul or by the packet transport of already compressed voice traffic when traffic is not local. Unlike traditional circuit-switched MSCs, Nortel R4 technology makes use of Call Servers and Media Gateways that separate the call control software and the physical ports carrying the voice calls. In addition to lowering the cost of switching and transporting calls, the Nortel R4 solution will also provide TSTT with advanced software features that will allow the operator to improve voice quality for subscribers.

Nortel's R4 solution provides the highest capacity and highest density wireless packet voice equipment available by leveraging Nortel's five years experience in Wireline packet voice technology.

EDGE is an International Telecommunication Union (ITU) approved 3G radio access standard. EDGE is designed to deliver packet data over 400 kilobits per second -- an average of up to three times faster than currently available on GPRS -- for Web browsing, streaming audio and video, multimedia messaging, location-based services, m-commerce, Virtual Private Networks (VPNs) and other wireless services.

Nortel EDGE technology allows GSM operators to offer high-speed data services to end users, serve more wireless customers, and free up GSM network capacity to accommodate additional voice traffic. Nortel EDGE solution is built upon the same powerful Packet Core Network as GPRS. No changes are needed on the Packet Core Network to benefit from EDGE improvements. In addition, Nortel EDGE solution improves network performance with its power amplifier advantage that increases the speed of downloading data. Nortel EDGE technology also provides larger EDGE coverage area from the base station transceivers (BTS) with the same quality of service compared to competitor products.

Nortel has worked with TSTT since the early 1980s. Most recently (February 2004), Nortel and TSTT announced the deployment of a Voice over IP network for the delivery of broadband voice, data and multimedia services. Nortel is the primary provider of wireless solutions for TSTT's network.

Nortel has designed, installed and launched more than 300 wireless networks in over 70 countries. Nortel was the industry's first supplier with wireless networks operating in all advanced radio technologies (GSM/GPRS/EDGE, CDMA2000 1X and 1xEV-DO, UMTS and WLAN), and is the only end-to-end provider of all next generation wireless solutions.

About TSTT

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%). 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.

About Nortel

Nortel is a recognized leader in delivering communications capabilities that enhance the human experience, ignite and power global commerce, and secure and protect the world's most critical information. Serving both service provider and enterprise customers, Nortel delivers innovative technology solutions encompassing end-to-end broadband, Voice over IP, multimedia services and applications, and wireless broadband designed to help people solve the world's greatest challenges. Nortel does business in more than 150 countries. For more information, visit Nortel on the Web at www.nortel.com. For the latest Nortel news, visit www.nortel.com/news.

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 outcome of regulatory and criminal investigations and civil litigation actions related to Nortel's restatements and the impact any resulting legal judgments, settlements, penalties and expenses could have on Nortel's results of operations, financial condition and liquidity; the findings of Nortel's independent review and implementation of recommended remedial measures; the outcome of the independent review with respect to revenues for specific identified transactions, which review will have a particular emphasis on the underlying conduct that led to the initial recognition of these revenues; the restatement or revisions of Nortel's previously announced or filed financial results and resulting negative publicity; the existence of material weaknesses in Nortel's internal controls over financial reporting; the impact of Nortel's and NNL's failure to timely file their financial statements and related periodic reports, including breach of its support facility and public debt obligations and Nortel's inability to access its shelf registration statement filed with the United States Securities and Exchange Commission ("SEC"); ongoing SEC reviews, which may result in changes to our public filings; the potential delisting or suspension of Nortel's and NNL's publicly traded securities; the impact of management changes, including the termination for cause of Nortel's former CEO, CFO and Controller in April 2004; the sufficiency of Nortel's restructuring activities, including the work plan announced on August 19, 2004 as updated on September 30, 2004, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions;

cautious or reduced spending by Nortel's customers; fluctuations in Nortel's operating results and general industry, economic and market conditions and growth rates; fluctuations in Nortel's cash flow, level of outstanding debt and current debt ratings; Nortel's ability to recruit and retain qualified employees; the use of cash collateral to support Nortel's normal course business activities; the dependence on Nortel's subsidiaries for funding; the impact of Nortel's defined benefit plans and deferred tax assets on results of operations and Nortel's cash flow; the adverse resolution of class actions, litigation in the ordinary course of business, intellectual property disputes and similar matters; Nortel's dependence on new product development and its ability to predict market demand for particular products; Nortel's 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 Nortel's 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, which is currently not available, of Nortel's forward purchase contracts; the impact of Nortel's 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; and the future success of Nortel's strategic alliances.

For additional information with respect to certain of these and other factors, see the most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed by Nortel with the SEC. Unless otherwise required by applicable securities laws, Nortel disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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