Nortel selected by Telekom Baltija to deploy CDMA2000 1X 450 in Latvia

March 18, 2004

Nortel Networks has been awarded a supply agreement by Telekom Baltija to deploy a CDMA2000 1X network that will be used to provide wireless voice and high-speed mobile data coverage for Latvia.

Deployment of the network, which will operate in the 450 MHz radio spectrum, is already underway. Telekom Baltija expects to launch the CDMA network in the second quarter of 2004 and offer commercial service beginning in the third quarter of 2004. Wireless service offerings will be based on enhanced quality voice and high-speed mobile and fixed data transmission services.

"We are providing Telekom Baltija with a cost-effective 450 MHz wireless voice and data solution based on its specific business needs," said Steve Searles, vice president, marketing, CDMA/TDMA, Nortel Networks. "This will help position Telekom Baltija to usher in a new era of wireless services in Latvia."

"We plan to implement in Latvia one of the most progressive and advantageous mobile technologies in the world - CDMA," said Michael Zotov, chairman of the board, A/S Telekom Baltija. "The key to success is a trusting relationship between the technology provider and operator. We are very pleased to be working with Nortel Networks, who we view as the most experienced CDMA technology provider."

CDMA 450 is a standard for use in countries transitioning to digital wireless service from Nordic Mobile Telephone (NMT) 450 analogue service and in countries advocating universal access to voice and data. Because of the lower radio spectrum, CDMA 450 has the advantage of covering a significantly larger geographical footprint compared to traditional cellular systems. This means fewer cell sites, lower capital expenditures and no need for licensed operators to acquire additional spectrum.

Nortel Networks CDMA 450 solution helps position operators to reduce costs related to installation, commissioning and power consumption. Nortel Networks has designed its CDMA 450 products as dedicated, standalone radios. This provides operators with cost-effective carrier growth in the network and the flexibility to deploy voice and data services in both rural and urban environments.

In October 2003, A/S Telekom Baltija received a public mobile telecommunications operator license, giving the company the rights to establish, develop and maintain the public mobile telecommunications network and to offer public telecommunications services.