Press Release

BC TEL Mobility moving full speed ahead on commercial service launch following successful completion of CDMA service trial

Sep 5, 1996SAN DIEGO

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VANCOUVER - BC TEL Mobility has committed to move forward on fullcommercial roll out of its Code Division Multiple Access (CDMA) digitalcellular service in British Columbia following successful completion offield trials of 800 MHz CDMA network equipment from Northern Telecom(Nortel).

"Our trials and controlled early deployment to date have proven ourchoice of Nortel and CDMA was sound," said Rob Cruickshank, president andchief operating officer, BC TEL Mobility. "I'm delighted to say thenetwork is meeting or exceeding all of our expectations for performance andvoice quality, and we're aggressively moving forward with our networkbuild-out with an eye on commercial service availability in early 1997."

BC TEL Mobility selected Nortel, in collaboration with Qualcomm, toprovide CDMA wireless network infrastructure equipment in a Memorandum ofUnderstanding (MOU) signed in March 1995. The two companies recentlyfinalized a definitive agreement under which Nortel will supply $60 millionin CDMA radio base station equipment, mobility services and mobilityswitching over five years to overlay BC TEL Mobility's existing Nortelanalog cellular network.

"We committed to deliver the best CDMA solution on the market, andto make BC TEL Mobility among the first in the world to provide commercialCDMA cellular service," said Matt Desch, group vice president and generalmanager, Wireless Networks, Nortel," and we're delivering on thosecommitments."

BC TEL Mobility began trials of its 800 MHz CDMA network overlay inthe fourth quarter of 1995. Among the milestones accomplished during thetrial were the first CDMA calls completed using 13 kbps voice codingtechnology on commercial hardware deployed in a live user environment.

Nortel's CDMA digital cellular network solution includes radio basestation equipment designed in collaboration with Qualcomm, and Nortel'sDMS-MTX digital mobile switching system.

Nortel and Qualcomm announced in December, 1994, a strategicrelationship to jointly design, develop, manufacture and sell complete,turnkey CDMA networks for cellular, PCS and wireless local loopapplications.

Nortel had 1995 revenues of $US 10.7 billion and has approximately63,000 employees worldwide.

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