Nortel Wins in Taiwan, Guatemala

TAIPEI, Taiwan -- Chunghwa Telecom is expanding the capacity of its island-wide GSM (Global System for Mobile Communications) digital cellular network to more than 7.5 million subscribers using core and access technology from Nortel Networks (NYSE:NT)(TSX:NT).

Under agreements signed in June and August 2003 and collectively estimated at US$64 million, Nortel Networks is deploying radio, core switching and intelligent network equipment for Chunghwa Telecom to support GSM/GPRS (General Packet Radio Service) wireless voice and data services with carrier-grade network reliability.

The agreements also include upgraded system software that will help position Chunghwa Telecom to drive new revenue opportunities through delivery of advanced wireless services.

"Nortel Networks GSM wireless infrastructure technology will enable us to increase our network traffic handling capacity and allow us to accommodate accelerating subscriber growth in Taiwan," said Chin-Yi Yue, vice president, Chunghwa Telecom. "The upgrade will improve radio frequency (RF) coverage, prepare for seamless 2G/3G interworking, and provide a platform for new revenue-generating services like Personalized-Ring Back Tone, Prepaid Short Message Service, and others."

"We are pleased to continue our long-standing relationship with Chunghwa Telecom," said Jackson Wu, managing director, Taiwan, Nortel Networks. "Nortel Networks built the initial GSM mobile network for Chunghwa Telecom in 1994. Nortel Networks technology is designed to position leading operators like Chunghwa Telecom to meet growing subscriber demand and to lay the foundation for next generation data opportunities."

In a separate release:

GUATEMALA CITY -- SERCOM, the wireless division of Telecomunicaciones de Guatemala S.A. (Telgua), a property of America Movil (NYSE:AMX)(Nasdaq:AMOV), has selected Nortel Networks (NYSE:NT)(TSX:NT) to deploy a nationwide GSM (Global System for Mobile Communications) network. The new infrastructure will position the operator to increase its current voice capacity as well as facilitate regional and international roaming.

Under a new contract, Nortel Networks will implement its complete GSM solution to overlay SERCOM's existing CDMA2000 1X network, which is also based on Nortel Networks wireless equipment. This will position SERCOM to seamlessly manage both networks. The overlay network will also be GPRS (General Packet Radio Service) and EDGE (Enhanced Data rates for GSM Evolution) ready.

"At SERCOM we strive to offer extensive service choices to our subscribers in Guatemala," said Marvin Par, general director, SERCOM. "We wanted the enhanced roaming capability of a GSM network and once again Nortel Networks was the vendor with the proven wireless solution that best met our requirements."

"Nortel Networks continued commitment to America Movil, SERCOM, and other key Latin American customers is to help them be successful by deploying networks that will position them to respond to market demands, drive new revenues and keep operational costs down," said Vic Cervantes, managing director, Mexico and Central America, Nortel Networks. "With this first implementation of GSM in Guatemala, SERCOM will be positioned to leverage its previous investments while offering outstanding additional services in the market."

Nortel Networks has worked with America Movil for many years to implement wireless networks in Latin America spanning TDMA (time division multiple access), CDMA (code division multiple access), and now GSM technologies.

Nortel Networks Corp.

Chunghwa Telecom Co. Ltd.