BEDMINSTER, N.J. and DALLAS, Tex. ? Verizon Wireless, operator of the nation?s largest wireless network with 34.6 million customers, has signed a multi-year agreement with Nortel Networks* [NYSE/TSX: NT] ? estimated to be worth US$1 billion ? for wireless infrastructure technology, including expansion and upgrade equipment for its nationwide, third generation (3G) voice and data network.

Under this new agreement, Verizon Wireless plans to deploy expansion and upgrade CDMA2000 1X radio base stations, switching, Passport* Internet Protocol (IP) platforms, and other related equipment from Nortel Networks in key markets including San Diego, Los Angeles, Las Vegas, Detroit, Atlanta and Cleveland. The agreement also includes a new market build-out and deployment of CDMA2000 1X technology in Myrtle Beach, S.C.

This will give Verizon Wireless additional network capacity to provide digital voice and high-speed data services like Web browsing, streaming audio and video, multimedia messaging, m-commerce and Virtual Private Networks (VPNs) to businesses and consumers.

?Nortel Networks is a primary supplier of Verizon Wireless? nationwide wireless network equipment because of its ongoing quality and innovation,? said Richard Lynch, executive vice president and chief technical officer, Verizon Wireless.

?Verizon Wireless has built its reputation on network quality and reliability, and Nortel Networks equipment plays an important role in our ability to deliver the best wireless services in the business,? Lynch said. ?They have earned this additional business by demonstrating strong performance over the last several years.?

?This is a significant announcement for Nortel Networks in our relationship with Verizon Wireless,? said Pascal Debon, president, Wireless Networks, Nortel Networks. ?We are very pleased to work with the largest wireless operator in the U.S. to deliver new wireless network services to their customers. Our wireless infrastructure technology positions operators like Verizon Wireless to reduce costs and increase revenues by helping them to deliver secure and compelling wireless data experiences to end users.?

Nortel Networks solutions will also support Verizon Wireless? plans to offer Wi-Fi (802.11b) service, providing connections between the Verizon Wireless wide area network (WAN) and ?hot spots? across the country.

Nortel Networks has been providing wireless equipment to Verizon Wireless and its predecessor companies since 1996. For example, earlier this year, Verizon Wireless selected Nortel Networks to provide CDMA2000 1X infrastructure in Georgia and Alabama.

Nortel Networks also supplied Verizon Wireless with CDMA2000 1xEV-DO technology in San Diego. CDMA2000 1xEV-DO provides secure peak data transmission speeds up to 2.4 Megabits per second (Mbps), giving mobile professionals access to corporate local area networks (LANs) and intranets remotely with performance comparable to wired desktop network connections. Verizon Wireless plans to make CDMA2000 1xEV-DO service commercially available in San Diego later this year.

Nortel Networks is implementing CDMA2000 1X for leading service providers around the world and has designed, installed and launched CDMA networks across five continents with more than 60 operators in 15 countries.

Verizon Wireless is the nation?s leading provider of wireless communications. The company has the largest nationwide wireless voice and data network and 34.6 million customers. Headquartered in Bedminster, NJ, Verizon Wireless is a joint venture of Verizon Communications (NYSE:VZ) and Vodafone (NYSE and LSE: VOD). Find more information on the Web at http://www.verizonwireless.com.**

Nortel Networks is an industry leader and innovator focused on transforming how the world communicates and exchanges information. The Company is supplying its service provider and enterprise customers with communications technology and infrastructure to enable value-added IP data, voice and multimedia services spanning Wireless Networks, Wireline Networks, Enterprise Networks, and Optical Networks. As a global company, Nortel Networks does business in more than 150 countries. More information about Nortel Networks can be found on the Web at http://www.nortelnetworks.com.

Source: Nortel Networks