Fact Sheet

Nortel Networks

GSM Fact Sheet

Modular, spectrally efficient, and cost effective wireless network solutions for today and tomorrow
With over 795 million subscribers worldwide, distributed over 400 operators in more than 190 countries at the end of 2002 the Global System for Mobile Communications (GSM) users represents 70% of the worldwide wireless market. The massive adoption of the GSM technology by the marketplace allows for one of the most attractive solutions for cellular services, combining cost effective infrastructure and terminal equipment with rich service offerings. Its widespread presence on all continents makes it the technology of choice to offer national and worldwide services and to capture incoming revenues from worldwide roamers. While GSM technology has had successful, but limited, deployments in the Americas until mid-2000, the current shift of technology in the North American market place with the transition of several major operators from TDMA to GSM is making GSM one of the two most prominent cellular technologies in the Americas. With its continuous evolution towards more advanced services and capabilities, including high speed wireless packet data (GPRS and EDGE), SMS, Mobile Location, Prepaid and its innovative use of SIM card technology that contains the subscriber information, the GSM standard is one of the most advanced and evolvable digital cellular standards. Its currently available 2.5G GPRS technology and clearly defined evolution path to 3G EDGE and UMTS technologies are offering backwards compatibility with GSM 2G and 2.5G services. The GSM solution is positioned to be one of the leading wireless technologies for decades to come.

Nortel Networks GSM Fact Sheet September 2003

Key GSM Benefits

Our GSM networks are characterized by near-wireline voice quality, unparalleled security, unequalled radio performance and leading-edge wireless voice, data, and fax features, demonstrating our GSM leadership across core and access. GSM /GPRS/ EDGE Leadership: Leading the industry with IP and data innovation. Spectral Efficient Access: Innovative and proven capacity solutions available throughout the BSS portfolio delivering spectral efficient access, driving down the CAPEX and OPEX costs for the wireless operator. Nortel Networks continues to lead the GSM market with spectrally efficient features such as frequency hopping, fractional re-use and our AMR codec solution. With our high capacity and leading voice quality BSC and BTS portfolio which enables significant reductions in CAPEX, Nortel Networks is lowering the cost of ownership for wireless operators. Reliability and Capacity Leadership: Delivering network stability and evolving capacity needs for GSM and GPRS networks in the access and core. Seamless Data Application Delivery for revenue generation: Nortel Networks offers wireless operators time to market advantages to deploy wireless data applications and services through our expertise in application performance engineering, ensuring that applications are optimized for an operators specific business needs. Nortel Networks offers standards based location services and leverages our relationship with best in breed solutions including Prepaid and Messaging through our key partners.

GSM Evolution
Nortel Networks has a well-defined evolution strategy from 2G GSM and TDMA networks to 3G UMTS networks and beyond. The first step in the migration of a GSM and TDMA network infrastructure to IP is with GPRS (General Packet Radio Service). Nortel Networks GPRS solution enables the delivery of data across existing GSM infrastructures at speeds up to 160 Kbps. As a packet-switched technology, GPRS is ideally suited to the bursty nature of Internet traffic, optimizing spectrum use by dynamically sharing time slots between different users, and enabling an Always On capability that allows sessionless data transactions between devices and Internet servers. GPRS is three times more efficient than circuit switch data protocols and can deliver up to a tenfold price performance improvement for operators. GPRS also radically accelerates mobile data services adoption by offering affordable prices to subscribers who will incur actual data transmission charges instead of expensive time-connection fees. The next step in the evolution of the next-generation GSM-based networks is migration to EDGE with Nortel Networks EDGE solution enabling operators to offer data services at speeds up to 473 Kbps and then speeds up to 2 Mbps with UMTS. Nortel Networks is using the same core components for its GPRS, EDGE and UMTS solutions. The GPRS product we sell today is hardware-ready for EDGE. As a result, mobile operators can be assured that they not only have the most effective solution today, but their current investments are protected and future investment minimized as they make the transition to the high-speed wireless data technologies of tomorrow. This evolution process will enable complete migration from circuit switched to IP-centric networks for data, voice and multimedia.

Nortel Networks GSM Fact Sheet September 2003

Nortel Networks

GSM Successes
Nortel Networks has deployed 80 GSM/GPRS networks in more than 50 countries, implementing costeffective, high-performance GSM networks around the world. We continue to demonstrate GSM leadership with our evolution strategy and GSM-R deployments. Nortel Networks is responding to the growth of wireless voice and data usage by developing technologies capable of meeting and surpassing the needs of mobile communicators. The ability to provide wireless information services, integrated communications, financial transactions, and more will define the successful GSM operator of tomorrow. Nortel Networks partners with GSM operators to address all the elements that bring success in the marketplace, from service differentiation through advanced features, to expanding capacity efficiently and cost-effectively

Recent Customer Wins and Milestones 2003

September 2003 Nortel Networks was selected as the sole supplier of GSM and GPRS network equipment and professional services for BaykalWestcom, one of the leading wireless operators in Russia, as part of an extended wireless data network supply agreement. August 2003 - Nortel Networks, Datang Mobile establish TD-SCDMA laboratory in Beijing. July 2003 - Nortel Networks has been selected as the sole supplier of Western Wireless GSM and GPRS/EDGE roaming network. July 2003 - Cable & Wireless Jamaica Offers Advanced Voice, Data Services Using Next Generation Wireless Network from Nortel Networks. June 2003 - APUA PCS Selects Nortel Networks for GPRS Wireless Data Network in Antigua, Barbuda. June 2003 - Nortel Networks was selected as the primary provider of Home Location Register (HLR) infrastructure to support Cingular Wireless migration to next generation GSM/GPRS/EDGE. June 2003 - Orange NL, is deploying a national optical network in the Netherlands which will serve as the backbone for its GSM/GPRS wireless network, which already includes Nortel Networks equipment. June 2003 Bahamas Telecommunications Company, selected Nortel Networks as the exclusive provider for evolution of its wireless data network to an advanced GSM/GPRS infrastructure, including the implementation of EDGE-ready technology. May 2003 Nortel Networks GSM Access BSS v14.2 Generally Available for EMEA and AP customers. May 2003 - Cincinnati Bell Wireless selected Nortel Networks for an overlay of its existing TDMA wireless network spanning Ohio, Kentucky, and Indiana to deliver a GSM and GPRS core wireless data network. May 2003 - Sunbeach selected Nortel Networks for GSM/GPRS Wireless Data Solutions in Barbados May 2003 - T-Mobile USA selected Nortel Networks for GSM/GPRS/EDGE and packet core wireless data network upgrades and associated professional services under a 4-year agreement valued at US$300M. March 2003 - TSTT commercially launched Trinidad and Tobagos first GSM network. March 2003 - Nortel Networks announced a new five-year contract with Bouygues Telecom to supply General Packet Radio Service (GPRS) wireless access technology for its French network to support wireless data services including more than 3,000 base stations. March 2003 - T-Mobile International selected Nortel Networks as its preferred supplier for delivery and implementation of Nortel Networks Packet Core for GPRS (General Packet Radio Service) across a number of T-Mobiles European properties. March 2003 Nortel Networks is selected by China Mobile to expand its GSM network in Hebei province in a contract valued at $36 million. The contract provides for introduction and implementation of both GPRS and EDGE. 1Q03 - Eastern New Mexico Rural Telephone (ENMR), a rural provider of wireless services in eastern New Mexico and western Texas selected Nortel Networks to migrate its TDMA network to GSM/GPRS technologies. Nortel Networks GSM Fact Sheet 3 September 2003

Nortel Networks

GSM Portfolio
Nortel Networks solutions for the GSM/GPRS/EDGE family of standards support the 850, 900, 1800 and 1900 MHz technology bands, in addition to dual band configurations. GSM S8000 Base Station Transceiver System (BTS) Indoor and outdoor models - Reduced indoor footprint for rapid deployment in-building or in-shelter Very high density traffic growth with up to 8 radios per cabinet offering maximum link budget capabilities through duplexer and filter combining from S111 to S888 -115 sensitivity eliminates the need for costly mast head amplifiers Future ready with support of AMR GPRS and EDGE technologies on standard hardware Leading capacity solution offering 1-1 fractional frequency reuse with use of synthesized frequency hopping, sectors synchronization, VAD/DTX, automated cell tiering and interference cancellation GSM S12000 Base Transceiver Station (BTS) Indoor and outdoor models and same RF characteristics as S8000 High capacity and TRX density 12 radios per cabinet EDGE and AMR ready GSM Base Transceiver Station (BTS) eCell GPRS and EDGE ready (first EDGE-ready BTS on the market) Capacity solution for very high density areas such as hotels, airports and malls Provides a temporary capacity solution as in the case of exhibitions or trade shows, or for on-site repair of macro BTS Offers an in-building solution with a distributed antenna system Provides a coverage hole solution Microcellular layer densification solution for dense urban areas GSM Base Station Controller (BSC) and Transcoding Unit (TCU) Physical footprint space dramatically reduced Provides higher capacity Supports EDGE and AMR Highly reliable - 99.99% availability High redundancy Highly scalable and easily manages voice traffic capacity configuration of up to 3000 Erlangs and up to 126 E1s or 168 T1s of connectivity in a single frame cabinet The BSCe3 will support growth from 600 to 3000 Erlangs Mobile Switching Center (MSC) Most reliable switch in service (ARMIS FCC Report 1996-2001) 1/3 the number of outages; 31% of mean time to restore service of nearest competitor Fault tolerant design and scalable processing Offers flexible configurations including integrated VLR (Visitor Location Register), HLR (Home Location Register), Signaling Transfer Point (STP) and Authentication Center (AC) enabling providers cost efficient network and subscriber management. Nortel Networks GSM Fact Sheet September 2003 4

Home Location Register (HLR) Supports multiple interfaces (GSM, GPRS, EDGE) simultaneously from a common platform, minimizing the need for additional capital outlays when a wireless operator is ready to migrate to 3G technology. Nortel Networks HLR solution uses a mated pair architecture that provides geographic redundancy the ability to safeguard customer information by storing it simultaneously on two separate, functioning platforms. Simplifies the provisioning process by using a centralized data server platform to provide a single point of aggregation. The centralized data server can provision multiple downstream systems, keeping the entire network synchronized as new subscribers are added or services change for individual subscribers. Capable of supporting of up to 8 million subscribers. GSM Packet Control Unit Service Node (PCUSN) Support of multiple BSCs leads to cost savings Ensures appropriate allocation of GPRS timeslots based on mobile set class No BSC hardware impact because PCU decoupled from BSC Gateway Support Node (GGSN) Provides aggregation between the GPRS/EDGE core network and the Internet Based on the industry-leading Shasta 5000 Broadband Service Node Provides advanced IP services like Firewalling, wireless VPNs, and Content Based Billing Carrier grade architecture Serving GPRS Support Node (SGSN) Performs mobility management, traffic routing, and user authentication and authorization within the GPRS/EDGE network Built upon the Passport 15000 Variable Speed Switch Mobile Location Center Enables new sources of wireless data revenue through location services Offers multiple positioning techniques: Cell ID, Enhanced Cell ID, Assisted-GPS Standards based Application Programming Interface (API) and developer-friendly Software Development Kit (SDK) Delivers advanced Privacy Controller options for subscribers Developed for GSM, GPRS, EDGE, iDEN, and UMTS networks Interactive Multimedia Server (IMS) Session Initiation Protocol (SIP) capabilities allow for advanced voice, video, and data applications Simplifies personal communications and collaboration with Presence, Availability, Location, and Instant Messaging services Enhances existing voice value proposition with Click to Call and Push to Talk Carrier grade, Java-based runtime and open programmability service environment Common platform can span wireless and wireline domains

Nortel Networks GSM Fact Sheet September 2003

Nortel Networks

GSM-R Portfolio
GSM-R is a communications system for railway networks based on GSM technologies. These systems feature incremental functional differences designed by the railway companies themselves and integrated into the EIRENE (European Integrated Railway radio Enhanced Network) and ETSI standards. 32 European railway companies signed the GSM-R MoU in 1998, committing to use GSM-R as their new standard and to build the first pan-European railway telecom system. GSM-R is now expanding beyond Europe, and has already been selected to replace analog systems in countries such as China and India. Nortel Networks has played a major role in defining and implementing GSM-R from the outset: we provided the first GSM-R equipment for the MORANE (Mobile Radio for railway Networks in Europe) trials in 1996. Today, we are supplying GSM-R networks in several major countries, including Germany, the United Kingdom, Italy and Slovakia. When the deployment for RFF announced in September 2003 is completed, Nortel Networks will have deployed GSM-R technology over 43,000 kilometres in total length of track, more than any other vendor in the world. Nortel Networks continues to offer diverse GSM-R market coverage around mountains, through tunnels, in dense-traffic marshalling yards and railway stations. We continue to build on our GSM-R momentum and expand our market leading position demonstrated by the successful 2002 launch of the high-speed line between Frankfurt and Cologne, Germany. The Nortel Networks GSM-R solution has been tested on this line to 350km/h, and has exhibited extremely high reliability and stability, a direct result of our 10 years of experience in GSM-R.

Key Components of Nortel Networks GSM-R Solution

Nortel Networks GSM-R technology is based on our industry-leading GSM portfolio in the access and the core. We offer railway operators a fully standards-compliant GSM-R solution that is both cost-effective and innovative. The BSS (Base Station Sub-system) includes our railway customized GSM-R Base Transceiver Station and BSC for a better track side coverage under adverse environmental conditions, maximum reliability, and specially adapted radio algorithms for high-speed train communication. The NSS (Network Switching Sub-system) and Core Network leverage the same components in our industryleading GSM core network solution, providing support for both the MSC and HLR in the same common platform. The Intelligent Network (IN) offers a rich variety of voice and data services and serves as an entry point to highly adaptable functionality tailored to railway needs. In addition, our solution offers full integration with a range of terminals, supported by an extensive set of planning and implementation services, all tailored specifically for the rail environment. Our turnkey solution offers best-in-class wireless network services which ensure the smooth integration of the GSM-R network with the existing networks through a set of standard procedures such as network design, interoperability tests, installation, commissioning, and system verification.

Key Wins and Milestones GSM-R

September 2003 - French railway infrastructure manager RFF and the French railway operator SNCF selected Nortel Networks to provision a France-wide GSM-R network under a 15-year agreement signed by RFF and estimated to be worth US$200 million. March 2003 - Kapsch CarrierCom selected Nortel Networks for a GSM-R network for Slovak Railways. August 2002 - Siemens TS deployed Nortel Networks GSM-R Solution for Deutsche Bahn 2002 and 2003 Nortel Networks has demonstrated our GSM-R technology and solutions at numerous global industry events including: Indian Railway Conference (June03), IQPC Conference (Mar03), UIC Conference in China (Dec02), Railtech (Nov02), InnoTrans in Berlin (Sept02).

For more information about our GSM-R solution, please visit http://www.nortelnetworks.com/solutions/gsm/gsm_r/.

Nortel Networks GSM Fact Sheet September 2003

Nortel Networks

Wireless Network Services for GSM

Nortel Networks also offers a comprehensive portfolio of planning, design, implementation, and integration services. Drawing on our leadership and expertise across all major wireless access and core technologies, Nortel Networks helps plan and deploy networks to smooth network transformation and ensure maximum and optimal coverage, capacity, and performance. Wireless Network Services available for GSM-based networks include: BTS Preventative Maintenance & MSC Clean Sweep (Switch Maintenance) Nortel Networks will assist in benchmarking, analyzing, and improving element health in order to improve the overall performance of the system. A cost-effective way to improve OPEX efficiency, increasing end-user satisfaction while possibly reducing churn. Remote Operations Center Centralized 24x7x365 multi-vendor network surveillance, analysis and remote operations services. Eliminates need for Operator to own and staff Network Operations Center. Off-hours, emergency back-up if required. Web-based System Performance Monitoring (ePerformance) & Capacity Reporting A web based monitoring service that extracts Customer data and applies proper engineering formulae to measure various aspects of Customer networks. Provides the information needed to effectively plan and engineer the network anywhere, anytime through the convenience of a single web portal. Application Performance Engineering Applications Performance Engineering services analyzes and tunes an operators wireless data network and applications. Ensures optimized user Quality-of-Experience with data applications. Similar innovative services are available for other wireless access technologies. For more information on our Wireless Network Services visit: http://www.nortelnetworks.com/corporate/cm/wi/doclib.html#services.

Nortel Networks GSM Fact Sheet September 2003

For more information about Nortel Networks GSM and GSM-R portfolio and evolution strategy, please visit the GSM section on our website at: http://www.nortelnetworks.com/gsm. 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 www.nortelnetworks.com. For media inquiries: Jamie Moody Media Relations Nortel Networks 972-684-7167 moodyjam@nortelnetworks.com
For more information, please contact your local Nortel Networks representative. Tel 1-800-4-NORTEL (1-800-466-7835) or 506-674-5471 Nortel Networks, Inc. 2221 Lakeside Blvd. Richardson, Texas 75082

Jay Barta Media Relations Nortel Networks +44 1628 438378 bartaj@nortelnetworks.com

http://www.nortelnetworks.com
Copyright 2003 Nortel Networks Corporation All rights reserved.

* Nortel, Nortel Networks, the Nortel Networks corporate logo, the globemark design, Shasta, Passport, S8000, S12000, eCell, and DMS are all trademarks of Nortel Networks. All other trademarks are property of their owners. Information in this document is subject to change without notice. Nortel Networks assumes no responsibility for any errors that may appear in this document.

Nortel Networks GSM Fact Sheet September 2003