Dobson Extends Nortel Deal

Dobson Communications extends wireless supply agreement with Nortel Networks

September 1, 2004

2 Min Read

DALLAS -- Dobson Communications Corporation (Nasdaq:DCEL), a leading U.S. provider of wireless telephone services to rural and suburban markets, has extended an existing wireless network supply agreement with Nortel Networks (NYSE:NT)(TSX:NT) for an additional two years, the companies announced today.

This extension follows the recent completion of Dobson's EDGE (Enhanced Data for GSM Evolution) technology deployment in 16 states across the nation. EDGE enables Dobson's subscribers to access a range of advanced wireless services, including wireless Internet access, e-mail, corporate databases, m-commerce applications, and multimedia messaging.

Nortel Networks, Dobson's primary core network and radio access provider, supported Dobson's deployment of GSM (Global System for Mobile Communications), GPRS (General Packet Radio Service) and EDGE technology in 13 states. With the completion of the EDGE deployment, Dobson and Nortel Networks completed a three-year supply agreement.

The two-year extension includes the deployment of additional GSM, GPRS and EDGE equipment. Capital expenditures related to the extended supply agreement are consistent with Dobson's previously announced capital expenditure plans for 2004 and 2005.

Under the extension, Dobson plans to upgrade its network quality and coverage in a number of markets, including those in northern Michigan that it recently acquired from NPI-Omnipoint Wireless, LLC. Dobson also plans to upgrade network capacity in specific markets in response to increased wireless traffic over the next two years. In addition, the two companies plan to collaborate on the field-testing of third generation (3G) Universal Mobile Telecommunications System (UMTS) technology beginning in early 2005.

"Dobson is committed to providing the most advanced wireless services to its markets, and Nortel Networks is a key partner in helping us achieve that goal," said Tim Duffy, senior vice president and chief technical officer for Dobson.

"Because Nortel Networks has been providing wireless infrastructure to Dobson since 1995, we understand the unique challenges involved in successfully expanding its network to deliver the same advanced wireless services to rural businesses and consumers that are now widely available in urban areas," said Alan Pritchard, vice president, global marketing, GSM/GPRS/EDGE, Nortel Networks.

"It is a privilege to continue working with Dobson as the primary supplier in its nationwide network," Pritchard said. "In addition, the upcoming 3G trial for Dobson will draw on the experience we have gained from other UMTS network implementations for service providers in the North American market."

Dobson Communications Corp.

Nortel Networks Ltd.

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