MEXICO CITY -- Mexican telecom operator AXTEL, S.A. de CV, has chosen Nortel Networks(NYSE:NT)(TSX:NT) to accelerate the convergence of its voice and data networks over an IP (Internet Protocol) network, positioning the service provider to broaden its service offerings, expand its coverage area and reduce operating costs.

"AXTEL plans to migrate all of its telephony traffic to a voice over IP (VoIP) network," said Alberto de Villasante, vice president, Negotiations, Alliances and Institutional Affairs of AXTEL. "Nortel Networks packet-based convergence solutions will allow us to offer our subscribers IP services that are unique in the market -- services like integrated voice and video communications, secure instant messaging and instant file transfer, while at the same time reducing our capex and network operation expenses."

AXTEL will deploy Nortel Networks Succession Communication Server(CS) 2000 and Nortel Networks Passport Packet Voice Gateway (PVG) to build a single, converged IP infrastructure that will enable AXTEL to offer local and long-distance services by the end of 2004 in Mexican markets where it does not yet have a local presence, such as Saltillo, Aguascalientes, Tijuana and Ciudad Juarez. With design and implementation support from Nortel Networks, the next generation network will position AXTEL to more quickly respond to market opportunities.

In the second phase of the project, AXTEL plans to migrate its voice and data traffic in the markets it currently serves, onto the new IP infrastructure to offer new VoIP services. This includes around 400,000 lines in service, supported by AXTEL's extensive fixed wireless access network.

"Nortel Networks IP solutions allow innovative service providers like AXTEL to simplify and transform their networks into more flexible and powerful infrastructures that can help them speed the deployment of value-rich services to their subscribers while driving down the cost of operation," said Manuel Terrero, vice president, Wireline Networks, Caribbean and Latin America, Nortel Networks.

Nortel Networks Ltd.