Tiscali UK, Nortel Networks Activate UK's First Commercial Carrier Voice Over IP Network

Business Wire,  August 21, 2002  

Tags: IP network, network, Nortel Networks Corp., Tiscali

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Business Editors & High Tech Writers

LONDON--(BUSINESS WIRE)--Aug. 21, 2002

Carrier Grade, Consolidated Network Expected

to Reduce Costs, Provide New Services

Tiscali UK, a subsidiary of Tiscali, the Internet Communication company, is now believed to be the first UK service provider to carry live, commercial voice traffic on a single, consolidated, carrier-grade voice over IP (Internet Protocol) network - with activation of its new service based on Succession softswitches from Nortel Networks (NYSE:NT)(TSX:NT.).

Nortel Networks Succession Communication Server 2000 softswitch controls how voice traffic traverses the network, positioning Tiscali UK to drive reduced operational costs and to build a foundation for delivery of new, multimedia IP services. It also cost-effectively extends geographical coverage by enabling use of smaller footprint `media gateways' as `points-of-presence' under centralized control.

"Tiscali UK and Nortel Networks are radically changing the way UK phone services can be delivered by eliminating the need for separate voice and data networks," said Stephane Huet, chief operating officer, Tiscali UK. "We chose Nortel Networks voice over IP technology because it is second to none in the industry and was available for immediate deployment."

"This agreement will allow us to deliver a market-leading, robust and proven 2.5 gigabit network with 18 points-of-presence in cities across the UK, enabling us to handle growing customer demand for high-value IP and voice services," Huet said.

"This is a landmark achievement for the UK's telecommunications infrastructure," said Colin Doherty, president, carrier voice over IP and data services, Nortel Networks EMEA (Europe, Middle East, Africa.)

"Just as manual switchboard operators were superceded by automated switching and analogue voice signals have been replaced by digital voice, all voice calls will eventually be carried over converged, packet networks," Doherty said. "With this new deployment, Tiscali UK has first-mover advantage to efficiently accommodate their customers' growth and deliver new voice services."

Voice over IP enables voice traffic to be broken down into smaller pieces and sent as data packets, allowing carriers to operate more cost-effectively and efficiently by using a common packet network to carry voice, data and video traffic.

All of Tiscali UK's 18 locations use products from Nortel Networks voice over IP portfolio, including Succession Communication Server 2000 softswitches.

Tiscali UK forms part of Tiscali SpA., headquartered in Cagliari, Italy. The company UK was launched in July 2001 following the acquisitions of Liberty Surf, World Online and LineOne. Most recently, Tiscali UK acquired Tiny and Gateway ISP. Tiscali UK is positioned within the UK market as the fourth largest ISP.

Tiscali S.p.A., (Nuovo Mercato, Milan: TIS, Nouveau Marche, Paris: 005773), is the leading pan-European Internet Communication Company providing access, content and business applications, as well as innovative communications services. As at 31 March 2002, Tiscali had 7.4 million active users and Internet traffic of 10.9 billion minutes in the first quarter 2002. With over 14 million unique visitors to the Tiscali portal in March 2002, Tiscali is confirmed as Europe's leading web property. Tiscali's corporate website can be found at www.tiscali.com.

Tiscali UK Business Services has a focused product portfolio enabling customers to choose from IP Virtual Private Network and Managed Hosting solutions, ADSL and Leased line access, Streaming Media, Virtual Internet Service Provision and Telephony services. In essence, a one-stop shop for business communications needs.

Visit the Tiscali UK Business Services website: www.tiscali-business.co.uk.

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.