Verizon Wireless, Nortel Networks Complete CDMA 3G Wireless Internet Trial

Verizon Wireless, Nortel Networks Complete CDMA 3G Wireless Internet Trial

Pave Way for High-Speed Wireless Data
Transmission, Increased Voice Capacity

COLUMBUS, Ohio (November 2, 2000) - Nortel Networks* [NYSE/TSE:NT] and Verizon Wireless today announced completion of a third-generation (3G) over-the-air trial of high-speed data transmission and voice calls using cdma2000* technology.
This successful trial in Columbus, Ohio, the first of its kind for Nortel Networks in the United States, has enabled Verizon Wireless, the nation's largest wireless carrier, to take an initial step toward bringing consumers and businesses 'anytime, anywhere' access to the Wireless Internet while increasing network voice capacity.
The first phase of cdma2000 - called 1XRTT - is designed to double voice capacity and support data transmission speeds 10 times faster than typically available today. With 1XRTT, wireless subscribers will be able to benefit from enterprise and consumer applications requiring more bandwidth, including personal information management, telemetry, corporate intranet access, video conferencing, gaming and music on demand.
A major milestone achieved during the field trial was the successful processing of both voice and data calls between three active cell sites. Implementation of 1XRTT is particularly important for increasing voice capacity while supporting data calls simultaneously.

With 1XRTT, Verizon Wireless will have the flexibility to support growing demand for voice and data without allocating bandwidth specifically for data before customer demand requires it. As an added benefit for customers, 1XRTT is backward compatible with the carrier's current cdmaOne* network, so current handsets and features will operate over the next generation network.

"The market continues to grow for both voice and data wireless offerings," said Ed Salas, staff vice president, network planning, Verizon Wireless. "This 1XRTT trial is another important step in the development of a robust digital data networking platform to support customer demand."

"In driving new, high-performance Wireless Internet services, Nortel Networks has demonstrated with Verizon Wireless that 1XRTT can bring exciting new applications to customers," said Alastair Westgarth, vice president, Wireless Internet, Nortel Networks. "This trial puts Nortel Networks in the position of offering one of the fastest time-to-market 3G solutions available."

Verizon Wireless is a leader in offering data products and services. The carrier owns and operates the nation's largest CDPD packet network and in July introduced Mobile Web service utilizing circuit-switched CDMA. Mobile Web offers a convenient way to wirelessly access content from the Internet while allowing customers to choose and personalize the information they most want to see. Enjoying the mobility of wireless communications, customers can access a variety of Web sites ranging from personal finance and shopping to news and entertainment.

About Verizon Wireless

Verizon Wireless is the largest wireless communications provider in the U.S. with 26.3 million wireless voice and data customers and 3.5 million paging customers. The new coast-to-coast wireless provider was formed by the combination of the U.S. wireless businesses of Bell Atlantic Corp. and GTE Corp - now Verizon Communications (NYSE:VZ) - and Vodafone [NYSE and LSE: VOD]. The new company includes the assets of Bell Atlantic Mobile, AirTouch Cellular, GTE Wireless, PrimeCo Personal Communications and AirTouch Paging. The company has a footprint covering nearly 90 percent of the U.S. population, 49 of the top 50 and 96 of the top 100 U.S. markets. Verizon Wireless, headquartered in Bedminster, NJ, is 32,000 employees strong. Reporters and editors can find more information about the company in its Media Center on the Web at www.verizonwireless.com/mediacenter/index.shtml.

About Nortel Networks

Nortel Networks is a global Internet and communications leader with capabilities spanning Optical, Wireless, Local Internet and eBusiness. The Company had 1999 U.S. GAAP revenues of US$21.3 billion and serves carrier, service provider and enterprise customers globally. Today, Nortel Networks is creating a high-performance Internet that is more reliable and faster than ever before. It is redefining the economics and quality of networking and the Internet, promising a new era of collaboration, communications and commerce. Visit us at www.nortelnetworks.com.

Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include, among other things: the impact of price and product competition; the dependence on new product development; the impact of rapid technological and market change; the ability of Nortel Networks to make acquisitions and/or integrate the operations and technologies of acquired businesses in an effective manner; general industry and market conditions and growth rates; international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; the impact of consolidations in the telecommunications industry, the uncertainties of the Internet; stock market volatility; the ability of Nortel Networks to recruit and retain qualified employees; and the impact of increased provision of customer financing by Nortel Networks. For additional information with respect to certain of these and other factors, see the reports filed by Nortel Networks with the United States Securities and Exchange Commission. Nortel Networks disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

*Nortel Networks, the Nortel Networks logo and the Globemark are trademarks of Nortel Networks. cdma2000 is a trademark of the Telecommunications Industry Association (TIA). cdmaOne is a trademark of the CDMA Development Group.