MELBOURNE -- Telstra, Australia's largest telecommunications and information services company, plans to boost network capacity and enable high-speed data services in capital cities and selected regional areas across Australia using CDMA2000 1xEV-DO (evolution-data optimized) third generation (3G) mobile broadband equipment from Nortel Networks (NYSE:NT - News; TSX:NT - News).

Upgrading to 1xEV-DO technology will enable Telstra to offer greatly enhanced levels of performance for mobile data services like Web browsing and remote mobile access to applications, providing Telstra customers with an 'anywhere' office experience.

Building on an existing CDMA network supplied by Nortel Networks to Telstra in 2000 and a subsequent CDMA2000 1X upgrade in 2002, Nortel Networks has begun deploying CDMA2000 1xEV-DO in major capital cities and selected regional areas.

1xEV-DO is a broadband radio technology that can support transmission speeds higher than those currently available using ADSL and cable modems. Combined with Telstra's national CDMA 1xRTT network, it will power Australia's largest cellular data network. This network will provide speeds bursting up to 153 kilobits per second (Kbps) nationally and bursting in excess of 1 megabit per second (Mbps) in 1xEV-DO coverage areas. 1xEV-DO users can expect 300 to 600 Kbps average throughput - equivalent to and in some cases better than fixed broadband.

Nortel Networks Ltd.

Telstra Corp.