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Dobson Communications Extends Wireless Supply Agreement with Nortel Networks; Extension Follows Completion of EDGE Technology Deployment in Rural Markets
Business Wire - September 01, 2004 09:01
DALLAS, Sep 1, 2004 (BUSINESS WIRE) -- Dobson Communications Corporation (Nasdaq:DCEL), a leading U.S. provider of wireless telephone services to rural and suburban markets, has extended an existing wireless network supply agreement with Nortel Networks (NYSE:NT)(TSX:NT) for an additional two years, the companies announced today.
This extension follows the recent completion of Dobson's EDGE (Enhanced Data for GSM Evolution) technology deployment in 16 states across the nation. EDGE enables Dobson's subscribers to access a range of advanced wireless services, including wireless Internet access, e-mail, corporate databases, m-commerce applications, and multimedia messaging.
Nortel Networks, Dobson's primary core network and radio access provider, supported Dobson's deployment of GSM (Global System for Mobile Communications), GPRS (General Packet Radio Service) and EDGE technology in 13 states. With the completion of the EDGE deployment, Dobson and Nortel Networks completed a three-year supply agreement.
The two-year extension includes the deployment of additional GSM, GPRS and EDGE equipment. Capital expenditures related to the extended supply agreement are consistent with Dobson's previously announced capital expenditure plans for 2004 and 2005.
Under the extension, Dobson plans to upgrade its network quality and coverage in a number of markets, including those in northern Michigan that it recently acquired from NPI-Omnipoint Wireless, LLC. Dobson also plans to upgrade network capacity in specific markets in response to increased wireless traffic over the next two years. In addition, the two companies plan to collaborate on the field-testing of third generation (3G) Universal Mobile Telecommunications System (UMTS) technology beginning in early 2005.
"Dobson is committed to providing the most advanced wireless services to its markets, and Nortel Networks is a key partner in helping us achieve that goal," said Tim Duffy, senior vice president and chief technical officer for Dobson.
"Because Nortel Networks has been providing wireless infrastructure to Dobson since 1995, we understand the unique challenges involved in successfully expanding its network to deliver the same advanced wireless services to rural businesses and consumers that are now widely available in urban areas," said Alan Pritchard, vice president, global marketing, GSM/GPRS/EDGE, Nortel Networks.
"It is a privilege to continue working with Dobson as the primary supplier in its nationwide network," Pritchard said. "In addition, the upcoming 3G trial for Dobson will draw on the experience we have gained from other UMTS network implementations for service providers in the North American market."
The 3G trial will include UMTS Release 4 (R4) technology, which is the first step of the evolution of the circuit switched network to a packet switched network.
EDGE is an International Telecommunication Union (ITU) approved 3G radio access standard. EDGE is designed to deliver packet data over 400 kilobits per second - an average of up to three times faster than currently available on GPRS - for Web browsing, streaming audio and video, multimedia messaging, location-based services, m-commerce, Virtual Private Networks (VPNs) and other wireless services.
Nortel Networks EDGE technology allows GSM operators to offer high-speed data services to end users, serve more wireless customers, and free up GSM network capacity to accommodate additional voice traffic. In addition, Nortel Networks EDGE solution improves network performance with its power amplifier advantage that increases the speed of downloading data. Nortel Networks EDGE technology also provides larger EDGE coverage area from the base station transceivers (BTS) with the same quality of service compared to competitor products
Nortel Networks has designed, installed and launched more than 300 wireless networks in over 50 countries. Nortel Networks was the industry's first supplier with wireless networks operating in all advanced radio technologies (GSM/GPRS/EDGE, CDMA2000 1X and 1xEV-DO, UMTS and WLAN), and is the only end-to-end provider of all next generation wireless solutions.
Dobson Communications is a leading provider of wireless phone services to rural and suburban markets in the United States. Headquartered in Oklahoma City, the Company owns wireless operations in 16 states. For additional information on the Company and its operations, please visit its Web site at www.dobson.net.
As a global innovation leader, Nortel Networks enriches consumer and business communications worldwide by offering converged multimedia networks that eliminate the boundaries among voice, data and video. These networks use innovative packet, wireless, voice and optical technologies and are underpinned by high standards of security and reliability. For both carriers and enterprises, these networks help to drive increased profitability and productivity by reducing costs and enabling new business and consumer services opportunities. Nortel Networks does business in more than 150 countries. For more information, visit Nortel Networks on the Web at www.nortelnetworks.com or www.nortelnetworks.com/media_center.
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 outcome of Nortel Networks independent review and planned restatement or revisions of its previously announced or filed financial results; the impact of the management changes announced on April 28, 2004 and August 19, 2004; the impact of the inability to meet Nortel Networks filing obligations on support facilities and public debt obligations; the sufficiency of Nortel Networks 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; continued reductions in spending by Nortel Networks customers; fluctuations in Nortel Networks operating results and general industry, economic and market conditions and growth rates; the communication by Nortel Networks auditors of the existence of material weaknesses in internal controls; Nortel Networks ability to recruit and retain qualified employees; fluctuations in Nortel Networks cash flow, level of outstanding debt and current debt ratings; the use of cash collateral to support Nortel Networks normal course business activities; the dependence on Nortel Networks subsidiaries for funding; the impact of Nortel Networks defined benefit plans and deferred tax assets on results of operations and Nortel Networks cash flows; Nortel Networks dependence on new product development and its ability to predict market demand for particular products; Nortel Networks ability to 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; barriers to 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; changes in regulation of the Internet; the impact of the credit risks of Nortel Networks customers and the impact of customer financing and commitments; stock market volatility generally and as a result of acceleration of the settlement date or early settlement of Nortel Networks purchase contracts; the impact of Nortel Networks supply and outsourcing contracts that contain delivery and installation provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; the future success of Nortel Networks strategic alliances; and the adverse resolution of litigation, investigations, intellectual property disputes and similar matters.
For additional information with respect to certain of these and other factors, see the most recent Form 10 Q/A and Form 10-K/A 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.
Nortel Networks, the Nortel Networks logo, the Globemark and Business Without Boundaries are trademarks of Nortel Networks.
Use of the terms "partner" and "partnership" does not imply a legal partnership relationship between Nortel Networks and any other party.
SOURCE: Nortel Networks
