All-IP Network Expected to Lower Operator Costs, Enable New Services for 
    Consumers

    DALLAS, Feb. 28 /CNW/ - Vodafone AirTouch (NYSE/LSE: VOD) and Nortel
Networks (NYSE/TSE: NT) will conduct a Wireless Internet trial in Dallas
beginning in March to demonstrate a packet-based, IP (Internet Protocol)
architecture designed to offer service providers an order of magnitude
improvement in the cost to deliver high-quality wireless voice and data
services for consumers.
    The trial is expected to show that the cost of wireless service can be
significantly reduced by transforming today's circuit-switched networks to
Unified Networks solutions using packet technology, industry-standard servers
and third generation (3G) radio technology.
    Part of an on-going, cooperative effort to understand the drivers,
economics and technical realities of an all-IP wireless network, the trial is
also expected to showcase an open architectural foundation for a new
generation of high-value, revenue generating Wireless Internet services.
    "We anticipate that more efficient wireless networks based on IP and
packet technology will allow us to bring greater value and service
differentiation to our customers while reducing our operating costs," said
Bill Keever, executive vice-president, network and systems operations,
AirTouch Cellular. "Our Wireless Internet trial with Nortel Networks will help
us to develop a better understanding of the dramatic changes ahead for
wireless networks, and the architectures required to address them."
    "We've driven down the cost of long distance and, with this architecture,
we expect to do the same for wireless while providing the foundation for a new
generation of services," said Hermon Pon, chief technology officer, wireless
solutions, Nortel Networks.
    "Working with leading-edge customers like Vodafone AirTouch, we're
driving the evolution of a profitable new Internet - a high-performance,
highly-reliable engine for economic growth," Pon said. "Together, we have the
networking, radio, IP and real world customer experience to help make the
Wireless Internet a successful commercial reality."
    The trial will incorporate Nortel Networks' CDMA Metro Cell radio base
stations - using cdmaOne digital radio technology - with a backbone network
featuring Nortel Networks' Passport packet switching equipment. The base
stations will be upgraded to include cdma2000 1XRTT 3G radio technology later
in the year.
    Vodafone AirTouch and Nortel Networks are also working together on a 3G
wireless trial in the UK. Announced in December, this trial includes IP
networking and W-CDMA 3G wireless radio technology.
    Vodafone AirTouch Plc, based in the United Kingdom, is the world's
largest wireless communications firm. It has mobile operations in 24 countries
on five continents, with more than 35.5 million proportionate cellular
customers. For more information, visit the company's web site at
www.vodafone-airtouch-plc.com.
    Nortel Networks is a global leader in telephony, data, eBusiness, and
wireless solutions for the Internet. The Company had 1999 U.S. GAAP revenues
of US$21.3 billion and serves carrier, service provider and enterprise
customers globally. Today, Nortel Networks is creating a high-performance
Internet that is more reliable and faster than ever before. It is redefining
the economics and quality of networking and the Internet through Unified
Networks that promise a new era of collaboration, communications and commerce.
Visit us at www.nortelnetworks.com.



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For further information: Tori Van Orden, Springbok Technologies
+1 (972) 480-9458, tvanorden@springbok.com; Olivier Le Friec, Nortel 
Networks, +33 (1) 39 44 38 95, olefriec@nortelnetworks.com; Melissa 
Stimpson, Vodafone AirTouch +44 (1) 635 682465, 
melissa.stimpson@vf.vodafone.co.uk; Paul Goyette, Nortel Networks
(905) 863-4702, goyette1@nortelnetworks.com
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