Bell Canada Boosts Internet Investment With Nortel's 40G Optical Solution

SEPTEMBER 04, 2008

TORONTO – Nortel* [NYSE/TSX:  NT ] announced today that  Bell ** has begun deployment of Nortel's 40G Optical Solution in its backbone network.

Nortel's  40G Adaptive Optical Engine  enables four times the current network bandwidth within Bell's Montreal-New York, Toronto-Chicago and Toronto-Montreal traffic corridors. This investment gives Bell more bandwidth in its backbone network, ensuring support for more customers and higher access speeds down the road.

"We're excited to partner with Bell to announce Nortel's first 40G deployment in Canada," said Philippe Morin, president, Metro Ethernet Networks, Nortel. "We are bringing together two great Canadian communications companies to ensure we address some of the network challenges and opportunities facing the Canadian and international broadband markets."

"With Nortel's 40G solution as part of our network backbone, we continue to expand the leading-edge technology that allows us to deliver a robust Internet experience to Canadian consumers and businesses," said Kevin Crull, president of Bell Residential Services.

Nortel's solution will enable 40G transmission to co-exist within Bell's current 10G network, allowing fibre-optic cables, thinner than a human hair, to carry vast amounts of information across the network. Considerable cost savings result from using the existing infrastructure as there is no need for Bell to deploy new fibre or alternate solutions for the metro and long haul parts of the network.

The foundation of the solution lies in Nortel's breakthrough on developing technology that easily upgrades existing 10G networks to a 40G solution through simple plug-and-play technology components. Among the key firsts of this solution include Dual Polarization Quadrature Phase Shift Keying with coherent detection that allows 40G operation over a 10G network as well as advanced digital signal processing that removes all compensation requirements from the network, along with their associated capital and operational expenditures. Other approaches require costly equipment that can carry the information light signals less than half the distance of the Nortel equipment.

This solution is built on the  Optical Multiservice Edge 6500  and runs over the Nortel  Common Photonic Layer  line system, key products that enable the migration to a more agile, adaptive, all optical network.

About Nortel

Nortel is a recognized leader in delivering communications capabilities that make the promise of Business Made Simple a reality for our customers. Our next-generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel's technologies are designed to help eliminate today's barriers to efficiency, speed and performance by simplifying networks and connecting people to the information they need, when they need it. Nortel does business in more than 150 countries around the world. For more information, visit Nortel on the Web at www.nortel.com . For the latest Nortel news, visit www.nortel.com/news.

About Bell

Bell is Canada's largest communications company, providing consumers with solutions to all their communications needs, including telephone services, wireless communications, high-speed Internet, digital television and voice over IP. Bell also offers integrated information and communications technology (ICT) services to businesses and governments, and is the Virtual Chief Information Officer (VCIO) to small and medium businesses (SMBs). Bell is proud to be a Premier National Partner and the exclusive Telecommunications Partner to the Vancouver 2010 Olympic and Paralympic Winter Games. Bell is wholly owned by BCE Inc. For information on Bell's products and services, please visit www.bell.ca . For corporate information on BCE, please visit www.bce.ca .

Certain statements in this press release may contain words such as "could", "expects", "may", "anticipates", "believes", "intends", "estimates", "targets", "envisions", "seeks" and other similar language and are considered forward-looking statements or information under applicable securities legislation. These statements are based on Nortel's current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which Nortel operates. These statements are subject to important assumptions, risks and uncertainties, which are difficult to predict and the actual outcome may be materially different from those contemplated in forward-looking statements. For additional information with respect to certain of these and other factors, see Nortel's Annual Report on Form10-K, Quarterly Reports on Form 10-Q and other securities filings with the SEC. Unless otherwise required by applicable securities laws, Nortel disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.