Nortel MIMO Technology Provides Up to Double the Existing Access Network Capacity to Serve More Customers at Less Cost

OTTAWA, Oct. 24 /CNW/ - Nortel(*) (NYSE/TSX: NT) has conducted the
industry's first wireless transmission using Uplink Collaborative MIMO to
demonstrate the ability for operators to serve up to double the number of
mobile broadband subscribers supported in a cell site as current wireless
technologies allow.

For 4G wireless operators, this enables the potential to substantially
increase their subscription revenue with the same capital investment.
Developed by Nortel, Collaborative MIMO is part of the WiMAX industry standard
and is also being proposed for 3GPP WCDMA Long-Term Evolution (LTE) and 3GPP2
CDMA EV-DO Rev-C standards.

"Uplink Collaborative MIMO creates a technological disruption that offers
revolutionary improvement in wireless network capacity and provides a clear
path to 4G Mobile Broadband - of which WiMAX is the first technology," said
John Hoadley, chief technology officer, Mobility and Converged Core Networks,
Nortel.

"Nortel's latest demonstration confirms that subscriber count and
capacity gains of OFDM-MIMO can be delivered even where individual devices are
not MIMO-enabled with multiple transmit antennas. Collaborative MIMO provides
the greater uplink capacity and spectral efficiency needed by operators to
deliver a full mobile broadband experience which will include internet, video
and VoIP cost-effectively across a wide range of devices," he said.
The demonstration at Nortel's Advanced Wireless Lab in Ottawa, used
Multiple-Input, Multiple-Output (MIMO), an emerging wireless antenna
technology that will serve as the foundation of Nortel's 4G Mobile Broadband
solutions.

For the demonstration, Nortel used MIMO-enabled multiple antennas at the
cell site and on 4G devices together with orthogonal frequency division
multiplexing (OFDM) transmission technology. Previous Nortel and industry
research has shown that a combination of these two technologies offers the
ability to deliver the highest network bandwidth and greatest spectral
efficiency capabilities at the lowest cost.

With OFDM, a single channel within a spectrum band is divided into
multiple, smaller sub-carriers that transmit information simultaneously
without interference. MIMO allows multiple data streams to be transmitted at
the same time and on the same sub-carriers through interference-free MIMO
spatial channels. Due to unique spatial channels that result for each antenna
path, interference between data streams is reduced. As a result, OFDM-MIMO
substantially increases the bandwidth and spectral efficiency.
Uplink Collaborative MIMO is a further enhancement that enables the use
of the same channel sub-carriers by multiple devices and subscribers -
effectively allowing them to share the same sub-carrier without interference.
Without Collaborative MIMO, the traffic being carried on a single sub-carrier
would not be maximized across multiple subscribers. The result would be that
the traffic would be severely limited, preventing users from having a true
broadband experience and limiting VoIP capacity such that conversations would
be unintelligible.

In March 2005, Nortel was the first company to demonstrate OFDM-MIMO at
37 Mbps peak data rates in 5 MHz of spectrum in the downlink, with the
transfer of a 128 MB file in just 30 seconds. Over the last eight years,
Nortel has been making progressive investments in OFDM-MIMO technology and
owns dozens of critical patents in these areas.

About Nortel

Nortel is a recognized leader in delivering communications capabilities
that enhance the human experience, ignite and power global commerce, and
secure and protect the world's most critical information. Our next-generation
technologies, for both service providers and enterprises, span access and core
networks, support multimedia and business-critical applications, and help
eliminate today's barriers to efficiency, speed and performance by simplifying
networks and connecting people with information. Nortel does business in more
than 150 countries. For more information, visit Nortel on the Web at
www.nortel.com. For the latest Nortel news, visit www.nortel.com/news.