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PARIS - Further proof of its lead in building a new,
high-performance Internet, Nortel Networks* [NYSE/TSE: NT]
ranks #1 among major vendors for its next-generation
wireless telecommunications infrastructure strategy in a new
analysis by Herschel Shosteck Associates, a leading
international industry consultancy.

Titled "Strategic Positioning of Infrastructure Vendors,"
Herschel Shosteck Associates is presenting this analysis as
part of its on-going Strategic Wireless Communications
Seminars, including the Oxford Programme, July 2-7, 2000 in
Oxford, U.K.

Beyond the breadth of Nortel Networks' wireless portfolio
and its understanding of the major second and third
generation digital wireless technologies, the analysis by
Herschel Shosteck Associates also focuses on Nortel
Networks' objective to leverage its leadership position in
optical core networks to deliver substantial cost savings to
wireless network operators.

"Based on our criteria of how well each of the vendors
understand issues of the future and how well they position
themselves for that future, Nortel Networks has earned the
top ranking among the list of major wireless
telecommunications infrastructure vendors," said Jane Zweig,
executive vice-president, Herschel Shosteck Associates, Ltd.

"Nortel Networks views wireless as just one piece in a far
bigger picture - beyond the radio access," Zweig said. "New
wireless networks and technologies will be expensive to
deploy. The company is transmitting a message of cost saving
and efficiencies for network operators which will be a
critical differentiator for them. Nortel Networks has every
opportunity of faring well."

"Nortel Networks has repositioned itself as a unified voice
and data networking company," Zweig said. "It offers network
operators a migration path from circuit switched to IP
(Internet Protocol) which builds on existing networks that
gradually take on more functionality and traffic."

"This analysis is particularly significant because it
recognises the importance of the cost and end-to-end
management aspects of delivering Internet services over
next-generation mobile networks," said Lloyd Carney,
president, Wireless Internet, Nortel Networks. "Equally
crucial is our focus on removing capacity bottlenecks, on
both the core and access sides, to anticipate the explosion
of demand for personalised Wireless Internet services.
Nortel Networks' strength in wireless, IP and optical can
enable wireless operators to rapidly and efficiently deliver
a whole new portfolio of content, commerce and eBusiness
services to their subscribers, fueling a second wave of
growth and profitability."

Herschel Shosteck Associates ranks wireless infrastructure
vendors based on their understanding of future issues and
positioning to address them. The analysis covers not only
radio access elements, but also the backbone and
transmission components of the wireless architecture. Beyond
wireless, it encompasses integration of mobile and fixed,
voice and data, public and private networks, and convergence
to IP. The analysis also reflects vendor acquisitions and
alliances, and ability to integrate them into current and
future strategies.

Herschel Shosteck Associates, Ltd. is an international
telecommunications consultancy based in Wheaton, Maryland,
USA. The firm is best known for its strategic wireless
communications seminars, its syndicated studies, and
consulting services. The firm has provided independent
measurements and analyses of wireless markets since 1981. As
the Internet began to affect the wireless industry, the firm
expanded its scope to analyse its impact on traditional
wireless businesses. Clients of the firm include
infrastructure and terminal manufacturers, network
operators, component manufacturers, software developers,
third party vendors, financial institutions, and regulatory
agencies around the globe. Visit us at www.shosteck.com.

Nortel Networks is a global leader in telephony, data,
eBusiness, and wireless solutions for the Internet. The
Company had 1999 U.S. GAAP revenues of US$21.3 billion and
serves carrier, service provider and enterprise customers
globally. Today, Nortel Networks is creating a
high-performance Internet that is more reliable and faster
than ever before. It is redefining the economics and quality
of networking and the Internet through Unified Networks*
that promise a new era of collaboration, communications and
commerce. Visit us at http://www.nortelnetworks.com

-end-

* Nortel Networks, the Nortel Networks logo, the Globemark,
Unified Networks and How the world shares ideas are
trademarks of Nortel Networks.

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