Nortel Publishes LTE Rates

TORONTO -- To help accelerate the global adoption of the 4G technology for high-speed, high-bandwidth mobile communications, Nortel* [NYSE/TSX: NT] has published a competitive handset royalty rate of about one percent subject to terms(1) for its portfolio of LTE standards-essential patents. Nortel’s competitive handset royalty rate for patent value is one of the first to be voluntarily published. Nortel is providing this information in order to help service providers and their handset vendors develop business plans for launching LTE, a wireless technology that can support hotly demanded mobile applications like social networking, multi-player gaming, and streaming video.

With initial LTE deployments expected to occur as early as next year, operators are exploring the business case for investment in the 4G wireless technology to meet demand for higher-bandwidth mobile services. Nortel is taking this exceptional step of publishing its competitive patent royalty rates in order to provide increased transparency and predictability of IPR costs that could help prevent uncertainties in handset costs from inhibiting the growth of the 4G market. Removing an unknown of LTE IPR handset licensing costs is expected to help foster LTE business cases and reduce the risks of early deployment. Nortel will make licenses available and is providing royalty information to help simplify the current guesswork while ensuring that its innovation is rewarded.

“Nortel believes pioneers and innovators should be entitled to a reasonable return on their investment in R&D and leading contributions to the next-generation standard, where not all patents are created equal,” said John Hoadley, vice president of 4G ecosystem and business development, Nortel.

Nortel Networks Ltd.