Cablecom Enhances Voice Services with Advanced VoIP Solution from Nortel

Provides Cost-Efficient and Innovative Path to Carrier VoIP Multimedia Services

MEXICO CITY, MEXICO--(MARKET WIRE)--Aug 6, 2007 -- Cablecom, a leading multi-system operator in Mexico, has selected a Nortel(1) (Toronto:NT.TO - News)(NYSE:NT - News) cable VoIP solution to enhance its current service portfolio, increase network capacity and operational efficiency.

Cablecom's new VoIP technology supports basic residential and business features and will evolve to new voice and video features as customer demand for news services increases. Cablecom will also be able to expand its network capabilities and deliver advanced communication services to 15 states in Mexico to help drive its business objective of broadening its customer base.

"As a regional carrier with demanding customers, Cablecom chose Nortel for its expertise in delivering the best network foundation for taking full advantage of the benefits of IP-based communications," said Ernesto Tinajero, president and CEO of Cablecom. "Our collaboration with Nortel is focused on ensuring we can capitalize on business opportunities made possible through a secure, reliable and efficient network that meets customer demand for new multimedia communications services now and into the future."

"Nortel's VoIP solution provides a powerful platform for delivering triple play integrated services such as video, Internet and telephony, essential in the new era of Hyperconnectivity where anything that can be connected to the network, will be connected," said Pablo Vazquez, president and CEO, Nortel Mexico and Mesoamerica. "Nortel is focused on delivering technologies that address the current needs of regional carriers while also ensuring a simple and hassle-free evolution to new hyperconnected services."

Cablecom is deploying Nortel's Communication Server 2000 which will interconnect different points of service from remote sites around the country. Communication Server CS 2000 IP Multimedia softswitch is a scalable, carrier-grade softswitch that delivers a comprehensive set of Class 5, Class 4 trunking, and Multimedia Unified Communication features. It supports a wide range of signaling, transport and control protocols and is designed to provide a foundation for simple evolution to IMS services.

Nortel's solutions for cable operations are designed to help drive new revenue opportunities and reduce operating costs. Nortel's comprehensive integrated cable solutions span video and video on-demand transport, voice and multimedia communications, high-speed data services, and managed network services for business customers. Nortel's Communication Server 2000 will allow Cablecom to meet demand for immediate clients needs, residential customers and SMB's, since it delivers comprehensive set of customer and business communication services, ranging from traditional voice services to multimedia communications.

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. According to Dell'Oro Group, Nortel is the worldwide leader in Carrier VoIP and has been for 5 years running (2002-2006). Nortel has deployed its existing SIP Applications with more than 100 operators globally and has shipped more than 4 million SIP lines. For more information, visit Nortel on the Web at www.nortel.com. For the latest Nortel news, visit www.nortel.com/news.

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.

(1) Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks.