PANAMA CITY -- Cable Onda, a leading cable service provider in Panama, has selected a cable voice over Internet Protocol (VoIP) solution from Nortel (NYSE:NT)(TSX:NT) to enhance its current service portfolio and offer IP (InternetProtocol) broadband services to its customers.

Nortel will implement a VoIP infrastructure for Cable Onda, positioning the service provider to offer cable VoIP services like integrated voice and video communications and IP Telephony to both residential and enterprise customers in Panama beginning in January 2005. Cable Onda plans to offer customers the option of keeping their existing phone number when they move anywhere within the Cable Onda network.

"At Cable Onda, we are always focused on exceeding our customer's expectations, bringing them sophisticated services that enhance the way they work or play," said Edgar Peregrina, corporate manager, Voice Services, Cable Onda. "Only Nortel's proven cable VoIP solutions are able to give us the flexibility and scalability we require to cost-effectively respond to current and future demand for advanced services."

Cable Onda's new VoIP infrastructure will be based on Nortel Communication Server (CS) 2000 - Compact. The PacketCable qualified CS 2000- Compact enables cable operators like Cable Onda to deliver the full suite of traditional voice services to business and residential customers on a packetized network with voice and data traffic sharing the same communications lines to provide more efficient and cost-effective use of existing transmission capacity. Also included in this deployment will be Nortel Packet Voice Gateway (PVG), designed to help switch voice calls more cost-effectively.

Nortel Networks Ltd.