RESEARCH TRIANGLE PARK, N.C. -- Nortel Networks (NYSE:NT)(TSX:NT) today introduced its comprehensive Succession Services initiative, designed specifically to help wireline and wireless service providers generate new revenues by facilitating mass market deployment of next generation services that business and consumers value. These new services will help simplify communications and increase mobility by integrating multiple devices and media -- such as e-mail, cell phones, home telephones and PDAs (personal digital assistants) -- into a single, simple communications session. "Twenty years ago, service providers introduced a whole new range of services -- like call waiting and caller ID -- that were embraced by both residential and business users and improved the way we all communicate," said Sue Spradley, president, Wireline Networks, Nortel Networks. "We view the Succession Services initiative as the next logical step, one that will deliver a new suite of services that may one day become as ubiquitous as call waiting." In support of this initiative, Nortel Networks has also introduced a service 'road map,' product enhancements, and an expanded co-marketing program. Nortel Networks has also defined a suite of multimedia and packet voice services, including a new voice over IP (VoIP) VPN (virtual private networking) service offering. "Service providers are facing an erosion of their business service revenues, as well as a slowdown in the growth of residential lines," Spradley said. "Wireless operators are facing increased sales and marketing costs due to the increase in customer churn rates. The challenge for both groups is to create new services to attract and retain subscribers, and build stronger customer loyalty. The Succession Services initiative is focused on this challenge." At the heart of Nortel Networks Succession Services initiative is a service road map that outlines a path for carriers to drive incremental new revenues and to stimulate the enterprise and consumer demand needed to generate service volumes. This further strengthens the business case for network packetization. The improved margins from packetization will position service providers to cost-effectively add another service or expand into different geographic markets, further increasing revenue opportunities. Nortel Networks has introduced a new managed service offering -- Succession Voice over IP Virtual Private Networks -- to help service providers generate incremental revenue. This service offering complements Nortel Networks newly defined suite of hosted multimedia and packet voice services, which also includes: Succession Centrex/Centrex IP, Personal Communications Manager, Multimedia and Collaboration, Internet Voice and Primary Voice. These services can be delivered to users over a variety of communication devices, including existing telephones. To help service providers 'mix-and-match' these services into attractive service bundles that complement their existing offerings, Nortel Networks will introduce several product enhancements, including:

Nortel Networks has also expanded its co-marketing program, MarketForce, to include results from a detailed market research study designed to understand specific buying patterns. The data will help carriers to strengthen business planning and pricing analysis, enabling them to accelerate time-to service-revenue with customized, integrated promotional and lead-generation campaigns. In a separate release: Nortel Networks (NYSE:NT) (TSX:NT) has introduced a new service offering designed to help create incremental revenue opportunities for service providers. This offering -- called Nortel Networks Succession Voice over Internet Protocol Virtual Private Network (VoIP VPN) services -- is expected to pay for itself in just over a year and a half when service providers add it to their existing networks, according to Nortel Networks studies. With Succession VoIP VPNs, service providers can manage an enterprise's voice network for them, positioning businesses to reduce ongoing operational expenditures by up to 25 percent, according to Nortel Networks studies. In addition, enterprises can integrate other data services to realize even greater cost savings. VoIP VPNs bring together branch offices, remote sites and even telecommuters onto a single telephone dial plan. This simplifies service management for corporate IT departments, and makes it easier for employees to communicate with each other. "Succession VoIP VPN service is a key component of Nortel Networks newly defined Succession Services suite," said Sue Spradley, president, Wireline Networks, Nortel Networks. "It provides a new incremental, revenue opportunity that fully leverages existing investments in both circuit and packet equipment, helping service providers move beyond commoditized data connectivity." Succession VoIP VPNs position service providers to further expand their revenue opportunities by providing a cost-effective means of extending the reach of services outside traditional service areas. At the heart of the Succession VoIP VPN service offering are Nortel Networks 'superclass' softswitches: Succession Communication Server 2000 and Succession Communication Server 2000-Compact. A superclass softswitch is one that meets all criteria for true service provider circuit-to-packet migration -- local, tandem and long distance capability on a single platform; full business and residential telephony service sets; regulatory features like 'Lawful Intercept' and 'Number Portability;' and carrier-grade reliability and scalability. Succession VoIP VPN service rounds out Nortel Networks Succession Service suite, available for deployment on existing circuit-switched and packet networks. This comprehensive suite of hosted business and residential services also includes:

In a separate release: Nortel Networks (NYSE:NT)(TSX:NT) has deployed its Succession Centrex IP (Internet Protocol) solution for a global leader in electronic commerce and payment services, helping the company provide a highly-reliable hosted call center service for its large installed base of financial customers. First Data Corp. has already deployed almost 700 lines of Nortel Networks Succession Centrex IP solution -- including i2004 Internet Telephones -- and plans to expand to more than 4,500 lines as business requirements increase. Succession Centrex IP is a key component of Nortel Networks Succession Services suite of hosted multimedia and packet voice services. "It's critical that we use the best tools to serve our clients," said John Pane, vice president, Information Services, First Data. "The flexibility of Nortel Networks equipment allows us to better use our existing investment and offer 'state-of-the-art' technology to quickly and efficiently process financial transactions." With Succession Centrex IP, First Data has cost-effectively expanded the geographic reach of its service, deploying agents quickly in remote call centers. First Data can now easily extend its call center capabilities thousands of miles while avoiding the replication of call center equipment. Centrex IP permits employees to retain their existing Centrex services and TDM (time division multiplexing) phones. In a separate release: WASHINGTON -- PPL Corporation (NYSE:PPL), a FORTUNE 500 energy company, has chosen a voice over IP (Internet Protocol) solution from Nortel Networks (NYSE:NT)(TSX:NT) as part of a plan to merge its voice and data networks to drive reduced costs, and to provide services like unified messaging and video conferencing for its employees. Deployment is already underway, with completion expected by the end of 2003. This solution will feature Nortel Networks Succession Communication Server for Enterprise (CSE) 1000. Commonwealth Communications, a Nortel Networks enterprise channel `partner,' is deploying this voice over IP solution for PPL. The PPL voice over IP deployment is the result of a relationship between PPL and Nortel Networks that continues to foster open dialog about PPL's communications needs and Nortel Networks product offerings, and has enabled PPL to become an early adopter of a solution that will satisfy its business requirements. "Enterprises want robust, reliable, secure IP telephony solutions for their communications needs," said Malcolm Collins, president, Enterprise Networks, Nortel Networks. "By working closely with PPL, we have helped position them to take advantage of the benefits of IP Telephony. This is a prime example of our `One network. A world of choice.' enterprise vision - giving PPL the flexibility they need to implement an information infrastructure that serves their business case while maximizing performance and functionality." Nortel Networks Corp.