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SERCOM Selects Nortel Networks to Deploy 3G Wireless Network in Guatemala
URL(s): www.nortelnetworks.com
Expected to be First CDMA2000 1X Network in Central America
GUATEMALA CITY, Guatemala - SERCOM, a wholly owned subsidiary of
Telecomunicaciones de Guatemala S.A. (Telgua), has selected Nortel Networks*
[NYSE/TSX: NT] as the sole supplier for expansion of its existing second
generation (2G) digital wireless network in Guatemala, including what is
expected to be the first CDMA2000 1X third generation (3G) deployment in
Central America.
This expansion is expected to give SERCOM increased network capacity to
handle subscriber growth, as well as to evolve the network over time to
enable new, revenue-generating services.
"We have once again chosen a Nortel Networks wireless solution for our
network because it was the best fit for our needs," said Marvin Par, general
director, SERCOM. "Nortel Networks 3G evolution allows us to address the
demands for wireless services in Guatemala in the most cost-effective manner
by permitting us to leverage our 2G investments."
"Our commitment is to provide our customers with leading-edge wireless
solutions that will position them to drive reduced costs and deliver new,
revenue-generating services through an 'always on' network," said Vic
Cervantes, managing director for Nortel Networks in Mexico and Central
America.
Under the contract, Nortel Networks will upgrade SERCOM's core network and
provide radio access equipment. Deployment of CDMA2000 1X technology will
enable SERCOM to more than triple capacity, as well as provide and manage
fixed wireless telephony services.
With the promise of packet data services and higher data throughput speeds,
CDMA provides a well-defined evolution path from the IS-95 (2G) standard to
3G via CDMA2000 1X and 1xEV. CDMA2000 1X is a next generation, ITU-approved,
IMT-2000 (3G) standard technology. A leader in CDMA since 1995, Nortel
Networks has designed, installed and commissioned more than 30,000 base
stations - over varying terrain and population densities - for 64 operators
in 14 countries around the world.
Telgua (Telecomunicaciones de Guatemala) is a provider of fixed and wireless
services and a range of other telecommunications services in Guatemala.
America Movil holds 94.3% of Telgua shares. Sercom is the Telgua Wireless
arm that delivers PCS service in Guatemala.
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 Metro and Enterprise Networks, Wireless
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
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 severity and duration of the
industry adjustment; the sufficiency of our restructuring activities,
including the potential for higher actual costs to be incurred in connection
with restructuring actions compared to the estimated costs of such actions;
fluctuations in operating results and general industry, economic and market
conditions and growth rates; the ability to recruit and retain qualified
employees; fluctuations in cash flow, the level of outstanding debt and debt
ratings; the ability to meet financial covenants contained in our credit
agreements; the ability to make acquisitions and/or integrate the operations
and technologies of acquired businesses in an effective manner; the impact
of rapid technological and market change; the impact of price and product
competition; international growth and global economic conditions,
particularly in emerging markets and including interest rate and currency
exchange rate fluctuations; the impact of rationalization in the
telecommunications industry; the dependence on new product development; the
uncertainties of the Internet; the impact of the credit risks of our
customers and the impact of increased provision of customer financing and
commitments; stock market volatility; the entrance into an increased number
of supply, turnkey, and outsourcing contracts which contain delivery,
installation, and performance provisions, which, if not met, could result in
the payment of substantial penalties or liquidated damages; the ability to
obtain timely, adequate and reasonably priced component parts from suppliers
and internal manufacturing capacity; the future success of our strategic
alliances; and the adverse resolution of litigation. 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. Unless otherwise required by applicable securities
laws, 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.
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