Nortel Brings Next Generation Communications to the Comfort of Your Own Home

MAY 19, 2008

TORONTO – According to recent market research commissioned by Nortel* [NYSE/TSX: NT [1]],
consumers want more convenience, flexibility and cost savings from
their VoIP and communication applications. This is good news for
service providers, thanks to Nortel's new IP Powered Home solutions –
variety of flexible, innovative application bundles for the consumer
market that combine personal Internet, TV and home phone services into
simple, customizable packages.

Many
consumers don't have access to converged communications capabilities
that enable consistent IP communications across fixed phones,
computers, mobile phones and television. Although some consumers today
have the beginnings of unified communications solutions [2] in
their homes, very few have access to advanced functionalities like the
ability to easily send instant messages (IM) and call people from any
device – fixed phone, computer, mobile phone or TV. Nortel's IP Powered
Home solutions make these new levels of communication a reality,
bringing consumers truly unified and simplified home communications.

The market research, conducted by RONIN Corporation [3]**,
included a web survey of over 2,000 consumers across the United States,
France and the United Kingdom. It was designed to gain insight into
consumer perception on VoIP, converged mobility, web services and
one-number services. The research found that one in four consumers
found converged mobility – the ability to make phone calls over WiFi
and cellular networks via a dual-mode phone – to be a highly appealing
service. The level of appeal was also found to be higher among current
VoIP users than non-users, and among consumers with data-enabled cell
phones.

"Consumers are looking for communications that simplify
and enhance their lives," said John McCready, general manager, Carrier
Multimedia Networks, Nortel. "We've deployed multiple applications to
carriers serving millions of consumers worldwide and we're building on
our success in this space with our IP Powered Home so carriers can sell
complete communications packages to consumers. These packages include
the most sought after voice and multimedia services with a variety of
SIP soft-clients, phones and videophones. Not only are these
attractive, affordable options for the consumer market, but they help
enable carriers to boost their revenue and reduce customer churn with a
wider variety of subscription based services."

Nortel's IP Powered Home solutions allow service providers to offer a core VoIP bundle [4] and
three optional bundles. The core bundle includes advanced phone
services for the home like affordable VoIP lines for each member of the
family, videocalling features and one number for both fixed and mobile
phones. The core bundle also includes Nortel's Personal Agent, a
web-based tool that allows users to take control of their
communications by defining how calls are routed based on time of day,
day of the week or caller ID as well as the ability to configure
ringing profiles so that calls ring only on the home phone,
simultaneously on the home phone and the mobile phone, or in sequence.
The IP Powered Home bundles build on an extensive open developer
program providing consumers with a choice of easy-to-set-up
soft-clients as well as a variety of SIP phones, videophones or
adaptors for existing analog phones.

The three optional bundles are:

• IPPH-4-Mobile
  – This mobile option provides a dual-mode phone that operates on both
  cellular and WiFi networks and can be used in the home or as a regular
  mobile phone. The user can benefit from inexpensive call rates at home
  using WiFi or make and receive calls on normal cellular networks while
  out.
• IPPH-4-Web – This web option, built
  on a combination of web services and telecom functionality allows users
  to expand their communications onto the Internet. Without displaying a
  phone number, consumers can be called directly from a link on their
  webpage, blog, social network like Facebook or even email signature
  using simple voice or a full video service.
• IPPH-4-TV
  – This TV option allows users to experience the power of the IP Powered
  Home base bundle from the comfort of their living room. The user can
  now manage voicemail messages, call logs, instant messages and see
  who's calling on their TV. They can also initiate calls from their TV
  and easily reject, ignore, or forward calls using their TV remote.

The
IP Powered Home bundles can be deployed in next-generation and IMS
networks, allowing carriers to benefit from the innovative services
today with the network architecture of their choice. To enhance the IP
Powered Home experience, the solution also leverages Nortel's recently announced Adaptive Application Engine software [5],
a next-generation SIP application server that provides new residential
features like multiple line ringing, click-to-connect, auto call-back,
self-provisioning or the ability to add friends registered with other
instant messaging providers to the Nortel PC Client.

Nortel is building on its experience in consumer business for carriers with deployments such as the "Twin" offering launched by Neuf Cegetel [6] in France, which accounted for 30% of the growth [7]** in the number of Neuf Mobile contracts sold during the final quarter of 2007and a WiFi SIP phone for home communications launched by LG-Dacom [8] in Korea, which attracted more than 300,000 new subscribers in just nine months.

According
to Dell'Oro Group, Nortel is the worldwide leader in carrier VoIP and
has maintained that position for the last six years (2002-2007). Nortel
has shipped more than 88 million carrier IP voice and multimedia ports
to over 250 carriers globally and Nortel's IMS-ready solutions have
been adopted by over 150 customers, including carriers operating across
wireline, wireless and cable domains. IP Powered Home Core and the
IPPH-4-TV bundles are available today, with the remaining bundles
expected to be available for trial in 2008. For more information on IP
Powered Home, check out the Nortel podcast [9] on the solution.

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 [10]. For the latest Nortel news, visit www.nortel.com/news [11].

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.

*Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks.
**This is a 3rd party link as described in our Web linking practices.