LIMA, Peru -- The Peruvian operator of the Telefónica Móviles Group, the wireless market leader in Peru**, has begun offering a comprehensive line-up of third generation (3G) mobile services nationwide using an advanced wireless data network solution from Nortel Networks* [NYSE/TSX: NT].

Telefónica Móviles Perú first launched these new services in November 2003 in the capital city of Lima and has now finalized the first phase of expansions of its 3G network in the provinces.

The new network – based on CDMA2000 1X technology – positions the Telefónica Móviles affiliate as the leading operator in Peru in offering advanced mobile data services like high-speed Web browsing, video downloads, single and multi-user games, sending and receiving e-mails and photos, chat, ring tones, location-based services and many more.

“We’re always working to bring the latest in advanced services to our customers,” said David Holgado, director of Technology and Services, Telefónica Móviles Perú. “We were able to count on Nortel Networks vast experience in deploying CDMA2000 1X overlays to help us complete this new, world-class mobile infrastructure. Today, that gives us an edge in responding to and even moving ahead of market demand for superior voice quality and advanced mobile data applications.”

Nortel Networks Ltd.