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Cable & Wireless Optus takes lead in wireless data services
13 May 1999

Cable & Wireless Optus today announced three significant enhancements to its GSM mobile digital network which will see the carrier lead the Australian market in the delivery of high-speed wireless data services.

The three enhancements include the implementation of General Packet Radio Service (GPRS) and Wireless Access Protocol (WAP), as well a $50 million upgrade of the company's Intelligent Network (IN) and core platform.

The new mobile network infrastructure will allow Cable & Wireless Optus to take advantage of the predicted explosion in wireless data traffic and increased demand for enhanced services.

At the launch of the new network enhancements, Paul O'Sullivan, Director of Cable & Wireless Optus' Mobile Division, said the Australian mobile digital phone market had been characterised by carriers differentiating their services through improved network coverage and innovative tariff plans.

"Wireless data transfer and the delivery of enhanced services will become the new battlegrounds for mobile customers. Cable & Wireless Optus is now at the cutting edge of developments in mobile technology. Through similar enhancements to our fixed network, we will provide our customers with the most advanced integrated communications solutions currently available.

"These latest mobile enhancements are part of an aggressive investment and expansion programme of our GSM network. In the last nine months, Cable & Wireless Optus has built 270 new base stations and invested $290 million to improve mobile network coverage and call quality."

General Packet Radio Service (GPRS)

Cable & Wireless Optus will begin a GPRS pilot programme with Nortel Networks in Q1 2000, with a view to launching a commercial service in Q3 2000. Under the terms of GPRS agreement, Cable & Wireless Optus will be the first carrier in Asia to begin trials of GPRS with Nortel Networks.

"Data traffic is currently growing at 10 times the rate of voice traffic, while global wireless subscribers are increasing at 20 per cent a year. By implementing GPRS, Cable & Wireless Optus will be well positioned to take advantage of the explosion in wireless data traffic when it happens.

"In using Nortel's packet-based GPRS solution, Cable & Wireless Optus is taking a large step down the path towards the implementation of third generation mobile technology," said Pascal Debon, President, Mobility, Wireless Solutions, Nortel Networks.

GPRS will allow the delivery of Internet and other IP-based applications, such as mobile Internet and Intranet access, personal messages services, file transfers, field service applications (taxi and courier dispatch) and telemetric applications (ATMs, automatic dispensing machines and electricity meters).

"With speeds of up to 115kbps, GPRS will offer cost-effective access to both Cable & Wireless Optus and our customers by allowing users to remain connected to the Internet for unlimited periods without monopolising network resources," said Mr O'Sullivan.

Intelligent Network (IN) enhancements

Cable & Wireless Optus has entered into a three year agreement with Nortel Networks for the upgrade of the IN and core platform. The enhancements will allow Cable & Wireless Optus to offer a range of new services, including mobile virtual private networks, sponsored call and sponsored cell facilities, location inquiry, home zone-based tariffing and advanced prepaid services.

The agreement includes a $2 million collaborative research and development program for mobile application development to be undertaken at Nortel's research labs at Wollongong University. Two international Nortel staff will also be seconded to the Cable & Wireless Optus Mobile Division to fast track the development of leading edge data solutions.

In 1992, Cable & Wireless Optus awarded Nortel Networks a five year, strategic supply contract for DMS switching systems for the GSM mobile network. Nortel went on to become the sole switching supplier for Cable & Wireless Optus' local, long-distance and international wireline services, and in 1997 was selected implement a next generation, IN (Intelligent Network) platform for advanced customer services.

Wireless Application Protocol (WAP)

In June 1999, Cable & Wireless Optus will begin participation in a collaborative pilot programme of WAP with Cable & Wireless sister companies, Hongkong Telecom and MobileOne. The trial will be based out of Hong Kong with Nokia expected to provide access to a WAP server, as well as network gateways and terminals.

The WAP service will provide Internet and data browsing capabilities to the mobile phone. Cable & Wireless Optus plans to launch a commercial WAP service in September 1999 when the first WAP mobile phones are scheduled to be launched in Australia.

Ends

About Cable & Wireless Optus

Cable & Wireless Optus is Australia's only fully integrated communications company servicing over three million customers. The company provides a broad range of communications services including mobile, national and long distance services, local telephony, business network services, Internet services and pay television.

Since commencing operations in 1992, Cable & Wireless Optus has constructed fixed, mobile and satellite networks, including central business district and suburban local access networks. These networks provide the company with an advanced technology platform capable of delivering integrated communications, information and entertainment services.

Cable & Wireless Optus is a member of the Cable & Wireless Group, a leader in global communications operating in more than 80 countries around the world.

About Nortel

Nortel Networks delivers value to customers around the world through Unified Networks solutions, spanning mission-critical telephony and IP optimised networks. Customers include public and private enterprises and institutions; Internet service providers; local, long distance, cellular and PCS communications companies, cable television carriers, and utilities.

Nortel Networks' common shares are listed on the New York, Toronto, Montreal, Vancouver, and London stock exchanges. Nortel Networks had 1998 revenues of US$17.6 billion and has approximately 75,000 employees worldwide.

For more information:
Glen Thomas
Cable & Wireless Optus
Phone: (02) 9342 6064
Mobile: 0411 254 380