SK Telecom, South Korea's largest mobile operator, has launched the world's first handset-based next-generation HSDPA network in cities across southern Korea using wireless broadband technology from LG-Nortel, a joint venture of LG Electronics and Nortel(*) (NYSE/TSX: NT).
SK Telecom's network is the first to provide HSDPA performance on handsets as well as data cards - ensuring high-speed, broadband wireless services are available to subscribers using either a handset or laptop computer. The services include high definition video-on-demand, MP3 streaming, multi-user mobile gaming, video calling, multimedia messaging and a host of other high bandwidth services. SK Telecom's service is branded "3G+" and will initially cover 25 cities across the country, with roll out to an additional 59 cities planned by the end of the year.
"The launch of our new brand "3G+" marks the beginning of the world's first handset-based HSDPA service. The brand will help familiarize users with HSDPA as we deliver a more sophisticated mobile lifestyle for our customers," said Bang Hyung Lee, Executive Vice-President and Chief Marketing Officer of SK Telecom. "We believe the widespread commercial service of HSDPA will bring new opportunities to SK Telecom as we accumulate the know-how of the more global W-CDMA technology-based cellular service in addition to our fully developed CDMA based service. And LG-Nortel has been instrumental in helping us achieve this success in a very short timescale"
"LG-Nortel, has ensured a rapid, high-quality deployment of the infrastructure required to support SK Telecom's "3G+" service," said Peter MacKinnon, Chairman, LG-Nortel. "LG-Nortel continues to work with SK Telecom to further enhance broadband mobility solutions in the world's most advanced broadband market. This announcement is another step on the road to deploying the next-generation of wireless network, or HSOPA/LTE, based on OFDM-MIMO, technologies in which Nortel has over seven years of innovation and several patents."
Nortel's HSDPA technology is helping SK Telecom reduce operating costs while delivering high-quality communications through more efficient use of its UMTS network. The technology is a key component in supporting SK Telecom's "3G+" services, ensuring the bandwidth and quality of service required to support new service offerings such as "high quality video call" and "ultra speed data transfer".
Nortel achieved the industry's first HSDPA mobile call in January 2005. Nortel and LGE completed the first live test calls using a commercial handset solution for HSDPA in March 2005. In June 2005, Nortel became the first wireless network supplier to complete the TL9000 registration standard for Quality Management System Requirements and Measurements across its HSDPA, UMTS and GSM wireless infrastructure solutions.
LG-Nortel is a joint venture between LG Electronics and Nortel, officially launched in November 3, 2005. LG-Nortel offers advanced telecommunications and network solutions in wired and wireless telecommunications, optical and enterprise areas for Korean and global customers. Its main divisions are Carrier Networks and Enterprise Networks businesses. Prior to the establishment of the joint venture, LG Electronics and Nortel had a close collaboration and were selected as network suppliers for KTF and SK Telecom's HSDPA/WCDMA networks. The company's sales and marketing departments are in the company's GS Tower building in Kangnam-gu, Seoul and its R&D center in Anyang, Geonggi province. The total number of employees for the company is approximately 1,400. For more information on LG-Nortel, visit www.LG-NORTEL.com.
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.
Certain statements in this press release may contain words such as "could", "expects", "may", "anticipates", "believes", "intends", "estimates", "plans", "envisions", "seeks" and other similar language and are considered forward-looking statements or information under applicable securities legislation. These statements are based on Nortel's current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which Nortel operates. These statements are subject to important assumptions, risks and uncertainties, which are difficult to predict and the actual outcome may be materially different. Although Nortel believes expectations reflected in such forward-looking statements are reasonable based upon certain assumptions, they may prove to be inaccurate and consequently Nortel's actual results or events could differ materially from its expectations set out in this press release. Further, actual results or events could differ materially from those contemplated in forward-looking statements as a result of the following (i) risks and uncertainties relating to Nortel's restatements and related matters including: Nortel's most recent restatement and two previous restatements of its financial statements and related events; the negative impact on Nortel and NNL of their most recent restatement and delay in filing their financial statements and related periodic reports (including the anticipated delay in filing the Quarterly Reports on Form 10-Q for the first quarter of 2006) causing them to breach their public debt indentures and, if the delay extends beyond June 15, 2006, their obligations under their credit facilities, with the possibility that the holders of their public debt or NNL's lenders would seek to accelerate the maturity of that debt, and causing, if the delay extends beyond June 15, 2006, a breach of NNL's support facility with EDC with the possibility that EDC would refuse to issue additional support under the facility, terminate its commitments under the facility or require NNL to cash collateralize all existing support; legal judgments, fines, penalties or settlements, or any substantial regulatory fines or other penalties or sanctions, related to the ongoing regulatory and criminal investigations of Nortel in the U.S. and Canada; any significant pending civil litigation actions not encompassed by Nortel's proposed class action settlement; any substantial cash payment and/or significant dilution of Nortel's existing equity positions resulting from the finalization and approval of its proposed class action settlement, or if such proposed class action settlement is not finalized, any larger settlements or awards of damages in respect of such class actions; any unsuccessful remediation of Nortel's material weaknesses in internal control over financial reporting resulting in an inability to report Nortel's results of operations and financial condition accurately and in a timely manner; the time required to implement Nortel's remedial measures; Nortel's inability to access, in its current form, its shelf registration filed with the United States Securities and Exchange Commission (SEC), and Nortel's below investment grade credit rating and any further adverse effect on its credit rating due to Nortel's restatement of its financial statements; any adverse affect on Nortel's business and market price of its publicly traded securities arising from continuing negative publicity related to Nortel's restatements; Nortel's potential inability to attract or retain the personnel necessary to achieve its business objectives; any breach by Nortel of the continued listing requirements of the NYSE or TSX causing the NYSE and/or the TSX to commence suspension or delisting procedures; any default in Nortel's filing obligations extending beyond July 15, 2006 for the 2006 First Quarter Form 10-Qs, causing any Canadian securities regulatory authority to impose an order to cease all trading in Nortel's securities within the applicable jurisdiction or to impose such an order sooner if Nortel fails to comply with the alternate information guidelines of such regulatory authorities; (ii) risks and uncertainties relating to Nortel's business including: yearly and quarterly fluctuations of Nortel's operating results; reduced demand and pricing pressures for its products due to global economic conditions, significant competition, competitive pricing practice, cautious capital spending by customers, increased industry consolidation, rapidly changing technologies, evolving industry standards, frequent new product introductions and short product life cycles, and other trends and industry characteristics affecting the telecommunications industry; any material and adverse affects on Nortel's performance if its expectations regarding market demand for particular products prove to be wrong or because of certain barriers in its efforts to expand internationally; any reduction in Nortel's operating results and any related volatility in the market price of its publicly traded securities arising from any decline in its gross margin, or fluctuations in foreign currency exchange rates; any negative developments associated with Nortel's supply contract and contract manufacturing agreements including as a result of using a sole supplier for key optical networking solutions components, and any defects or errors in Nortel's current or planned products; any negative impact to Nortel of its failure to achieve its business transformation objectives; additional valuation allowances for all or a portion of its deferred tax assets; Nortel's failure to protect its intellectual property rights, or any adverse judgments or settlements arising out of disputes regarding intellectual property; changes in regulation of the Internet and/or other aspects of the industry; Nortel's failure to successfully operate or integrate its strategic acquisitions, or failure to consummate or succeed with its strategic alliances; any negative effect of Nortel's failure to evolve adequately its financial and managerial control and reporting systems and processes, manage and grow its business, or create an effective risk management strategy; and (iii) risks and uncertainties relating to Nortel's liquidity, financing arrangements and capital including: the impact of Nortel's most recent restatement and two previous restatements of its financial statements; any acceleration under their public debt indentures and credit facilities, which may result in Nortel and NNL being unable to meet their respective payment obligations; any inability of Nortel to manage cash flow fluctuations to fund working capital requirements or achieve its business objectives in a timely manner or obtain additional sources of funding; high levels of debt, limitations on Nortel capitalizing on business opportunities because of credit facility covenants, or on obtaining additional secured debt pursuant to the provisions of indentures governing certain of Nortel's public debt issues and the provisions of its credit facilities; any increase of restricted cash requirements for Nortel if it is unable to secure alternative support for obligations arising from certain normal course business activities, or any inability of Nortel's subsidiaries to provide it with sufficient funding; any negative effect to Nortel of the need to make larger defined benefit plans contributions in the future or exposure to customer credit risks or inability of customers to fulfill payment obligations under customer financing arrangements; any negative impact on Nortel's ability to make future acquisitions, raise capital, issue debt and retain employees arising from stock price volatility and further declines in the market price of Nortel's publicly traded securities, or any future share consolidation resulting in a lower total market capitalization or adverse effect on the liquidity of Nortel's common shares. For additional information with respect to certain of these and other factors, see the Company's Annual Report on Form 10-K/A and NNL's Annual Report on Form 10-K and other securities filings with the SEC. Unless otherwise required by applicable securities laws, Nortel 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, the Nortel logo and the Globemark are trademarks of Nortel Networks.
For further information: Bohyun Kim, +82 2 2005 2128, kimvo@LG-NORTEL.com; Hyun Chul Ahn, +82 2 2005 2127, hcan@LG-NORTEL.com; Pat Cooper, (425) 450-7523, firstname.lastname@example.org