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WirelessDevNet.com Press Release

T-Mobile USA Awards Network Upgrade Valued at US$300 Million to Nortel Networks


Wireless Data Network to Boost Capacity, Reduce Operating Costs, Support Data Services

BELLEVUE, Wash.--May 7, 2003--T-Mobile USA, Inc., a wholly-owned subsidiary of T-Mobile International, the mobile arm of Deutsche Telekom AG (NYSE: DT - News), has selected Nortel Networks (NYSE/TSX: NT) to provide GSM (Global System for Mobile Communications), GPRS (General Packet Radio Service), EDGE (Enhanced Data Rates for GSM Evolution) and packet core Wireless Data Network upgrades and associated professional services under a four-year agreement valued at US$300 million.

The agreement calls for Nortel Networks to deploy core and radio access products from Nortel Networks Univity portfolio across existing T-Mobile USA network footprints, including the New York, Chicago, Dallas, Milwaukee, Denver, Detroit, and Salt Lake City markets. GSM, GPRS and EDGE-ready infrastructure will enhance T-Mobile USA's network capacity and capabilities for providing a quality customer service experience when using the company's portfolio of advanced features and services like visual communications, two-way text messaging, instant messaging, Web browsing and gaming.

"The Wireless Data Network deployments will enable T-Mobile USA to leverage and augment Nortel Networks presence across our national network to provide greater capacity in a very cost-effective manner," said Tim Wong, chief technical officer, T-Mobile USA. "In addition to positioning us to support our growing subscriber base, Nortel Networks is helping deliver personalized service offerings that allow us to deliver on our Get MoreŽ promise to our customers and ensure they have a consistent, reliable, quality experience."

"We are very pleased to support T-Mobile in meeting the growing needs of their customers, and to increase our market share across their national network," said Vivian Hudson, president and general manager, GSM/GPRS/EDGE, Nortel Networks. "Our Univity solutions deliver carrier-grade reliability with industry-leading capacity and spectral efficiency. This enables T-Mobile not only to reduce capital and operating costs, but also empowers them to deliver on a quality experience for their customers."

Nortel Networks has supported GSM network planning and deployment for T-Mobile since the company's inception as VoiceStream Wireless in 1995. Wireless Data Network infrastructure to be deployed for T-Mobile USA under the new agreement will include Univity GSM Base Transceiver Station S12000 Indoor and Outdoor radio equipment, Univity Base Station Controllers (BSC), and IP core equipment including Univity Mobile Switching Center (MSC). Nortel Networks is also the primary provider of Home Location Register (HLR) infrastructure for T-Mobile USA's national wireless network.

Nortel Networks has deployed 80 GSM/GPRS networks in more than 50 countries and is supplying GSM/GPRS systems to enable Wireless Data Network services for more than 50 operators around the world. Nortel Networks is the industry's only supplier with Wireless Data Networks operating in all three advanced technologies - GPRS, CDMA2000 and UMTS.

About T-Mobile USA, Inc.

Based in Bellevue, Wash., T-Mobile USA, Inc. is a member of the T-Mobile International group, the mobile telecommunications subsidiary of Deutsche Telekom AG (NYSE: DT - News). T-Mobile operates the largest GSM/GPRS 1900 voice and data network in the country, reaching over 245 million people including roaming and other agreements. In addition, T-Mobile operates the largest carrier owned Wi-Fi (802.11b) wireless broadband (WLAN) network in the country, available in more than 2,300 public access locations including Starbucks coffeehouses, Borders Books and Music, airports and American Airlines Admirals Clubs. T-Mobile is committed to providing the best value in wireless service through its GET MOREŽ promise to provide customers with more minutes, more features and more service than any other wireless provider. For more information, visit the company web site at www.t-mobile.com.

About Nortel Networks

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.



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