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Network provides Innovative Internet Telephony Services;
Optimized for Wireless Internet services of the future

MADRID, Spain -- Nortel Networks* [NYSE/TSE: NT] has been
selected by Airtel Movil S.A. to supply the world's first
converged wireless/wireline packet network worth an
estimated US$50 million over the next two years. The network
will be deployed across Spain's 50 provinces including the
islands and will provide innovative Internet Telephony and
Wireless Internet services.

This award represents a paradigm shift for Airtel. The
company is evolving both their wireless and wireline
networks from a circuit to a packet infrastructure optimised
for advanced Internet services.

"The solution from Nortel Networks delivers the wireless and
wireline convergence we require to offer a comprehensive
service set to consumers and businesses in Spain," said
Ignacio Galán, Chief Operating Officer, Airtel Movil S.A..
"We actively sought a vendor with experience in both
Internet Telephony and Wireless Internet solutions who could
collaborate with us in making this significant transition in
our business strategy."

Airtel is positioning themselves to take advantage of the
latest technological developments imminent in the mobile
marketplace - second and third generation mobile services
which use GPRS (General Packet Radio Service) and UMTS
(Universal Mobile Telephony Service) technologies.

The Passport* 8780 Packet Voice Gateway ATM switch, launched
in Europe today, was key to Nortel Networks' success. As
part of Nortel Networks gateway portfolio of Internet
Telephony solutions, the Passport 8780 provides carrier
class voice and Internet services over an ATM network. It is
also the gateway linking the ATM network and the GSM
wireless network. By employing AAL2, a 3rd generation mobile
standard which supports the new Wireless Internet services
of the future, the Passport 8780 ensures Airtel is ready for
the future.

The contract also includes Passport 7480 ATM switches,
Nortel Networks' ICE Call Server, Universal Signalling
Point, Integrated Network Management and assorted
Professional Services.

Airtel Movil S.A. has been offering mobile communications
services to Spanish users since October 1995. Since that
time, Airtel has completely transformed itself into a major
telecommunications carrier. Since May 1999, Airtel has also
been providing access to the Internet and fixed telephony
services. Airtel has over 3,820,000 customers in Spain.

Nortel Networks delivers value to customers around the world
through Unified Networks* 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' common shares are listed on the New York,
Toronto, Montreal and London stock exchanges. Nortel
Networks had 1998 revenues of US$17.6 billion and has
approximately 70,000 employees worldwide.

Notes to Editors

Passport 8780 Voice Gateway Switch

Nortel Networks Passport 8780 delivers carrier-grade voice
quality, network availability and reliability, as well as
industry-leading density of approximately 3,000 simultaneous
voice calls on a single shelf. With the Passport 8780
Service Providers can take traffic off TDM networks and
place it over ATM-based packet networks while maintaining
carrier voice quality and service transparency. PSTN
congestion can be reduced without Service Providers having
to purchase additional tandem switches or facilities.

The Passport 8780 utilises the ATM Adaptation Layer 2 (AAL2)
standards that are optimised for telephony over ATM
interworking. With advanced voice processing features,
including speech compression, silence detection, and silence
suppression, the Passport 8780 can be configured to provides
carriers with more than 66% bandwidth savings. Designed to
support open standards, the Passport 8780 interoperates with
most PSTN voice switches and ATM switches.

In upcoming product releases the Passport 8780 will offer
switched services including support for SS7 ISUP protocols
and Voice over IP (VoIP). The Passport 8780 is part of
Nortel Networks' Internet Telephony portfolio - the broadest
portfolio of next generation Internet Telephony solutions to
wireline, wireless and cable service providers and
enterprises in order to simplify voice and Internet access
for businesses and consumers. The flexible approach meets
the explosive demand for voice and Internet services such as
voice over IP, multimedia applications, unified messaging
and virtual private networks.

This press release was distributed by ResponseSource Press Release Wire on behalf of Pleon in the following categories: Consumer Technology, Personal Finance, Business & Finance, Computing & Telecoms, for more information visit