QUALCOMM, Nortel Demonstrate 'Supercharged' Consumer Broadband Wirel

    Business Editors/Technology Editors

    CHATEAUFORT, France--(BUSINESS WIRE)--Jan. 26, 2005--Nortel (NYSE:NT) (TSX:NT) and QUALCOMM Incorporated (Nasdaq:QCOM) have completed the industry's first end-to-end calls using WCDMA's emerging broadband technology -- High Speed Downlink Packet Access (HSDPA) -- on a commercial network and handset equipment. The calls demonstrate the capability to commercially deliver a new era of 'supercharged' mobile services.
    "QUALCOMM is committed to helping the WCDMA community extend the utilization of wireless for data communications purposes," said Dr. Sanjay K. Jha, president, QUALCOMM CDMA Technologies. "This practical demonstration is a big step forward towards the realization of commercial HSDPA networks and an important validation of the enhanced performance HSDPA will bring to carriers."
    The calls were completed using commercial network equipment from Nortel and the industry's first available handset solution, which is enabled by QUALCOMM's Mobile Station Modem(TM) (MSM(TM)) MSM6275(TM) chipset. Calls were made over a live air connection to a moving automobile to demonstrate the stability of the connection in a real-world environment.
    Mobile broadband services simulated include high-resolution interactive gaming, multimedia music tracks, DVD-quality film and video, 'push-to-watch' services and access to large e-mail attachments -- at speeds more than three times faster than today's commercial next generation networks. For example, a five-megabyte music file was downloaded in less than 30 seconds, and an e-mail with a three-megabyte attachment was downloaded in 20 seconds, which is comparable to DSL or ADSL speeds.
    "Nortel is a leading innovator in bringing the newer and faster technologies to market that will ignite global commerce and drive the industry forward for the next five, 10, even 15 years," said Peter MacKinnon, president, GSM/UMTS, Nortel. "Working with leaders like QUALCOMM, we are laying the groundwork now to deliver even faster technologies that will enhance the end user experience and create new business models for the industry."
    HSDPA is a migration technology for the UMTS wireless standard used by leading wireless operators across Europe, Japan and North America to deliver voice and data services. HSDPA boosts network capacity to carry up to three times as much data traffic and up to twice as many wireless users per cell site compared to today's UMTS networks. By making more efficient use of the existing network and boosting throughput, HSDPA significantly reduces operating costs while delivering a better end-user experience.
    QUALCOMM's MSM6275 chipset solution for WCDMA (UMTS)/HSDPA and GSM/GPRS/EDGE (EGPRS) provides increased processing power and graphics performance at low power consumption to enable the highest quality audiovisual and gaming graphics on cost-effective, multiband, multimode handsets with smaller form factors.
    The broadband calls were completed using Nortel's commercially-available UMTS Base Transceiver stations. This equipment is designed to be HSDPA-ready and to cost-effectively upgrade to support HSDPA through a simple software installation.
    Nortel recently announced plans with mmO2 for a Pan-European HSDPA network deployment, and is working with a number of other leading global operators on HSDPA trials and deployments in 2005.
    Nortel Networks has designed, installed and launched more than 300 wireless networks in over 50 countries. Nortel Networks was the industry's first supplier with wireless networks operating in all advanced radio technologies, and is the only end-to-end provider of all next generation wireless solutions.

    About QUALCOMM

    QUALCOMM Incorporated (www.qualcomm.com) is a leader in developing and delivering innovative digital wireless communications products and services based on the Company's CDMA digital technology. Headquartered in San Diego, QUALCOMM is included in the S&P 500 Index and is a 2004 FORTUNE 500(R) company traded on The Nasdaq Stock Market(R) under the ticker symbol QCOM.

    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 August 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 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.
    Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks.

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CONTACT: Nortel Jay Barta, 972-685-2381 jbarta@nortel.com or Ben Roome, +44 1628 43 3113 benroome@nortel.com or QUALCOMM Jennifer Bernas, 858-845-7571 qct_publicrelations@qualcomm.com

KEYWORD: CALIFORNIA TEXAS FRANCE INTERNATIONAL CANADA EUROPE INDUSTRY KEYWORD: TELECOMMUNICATIONS SOFTWARE NETWORKING HARDWARE PRODUCT MARKETING AGREEMENTS SOURCE: Nortel

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