Telesat and Northern Telecom have agreed to jointly develop satellite-based solutions that will help to bring affordable telephony to underserved markets around the world.

These solutions will leverage a new-generation geostationary satellite

system with substantially increased transponder capabilities that enable

smaller, more cost-effective satellite dishes to be easily installed by users in underserved and rural locations.

Telesat and Nortel have been working closely for several months to define

market opportunities, structure business cases, design network solutions and

determine partnering strategies for delivery of these services to different

regions of the globe. The companies plan to announce additional alliance

partners in the coming months.

“The evolution of satellite technologies now provides us with an

opportunity to develop extremely cost-effective wireless services, providing

telephone and computer access from anywhere within a region, country or

continent,'' said Paul Bush, vice-president, corporate development, Telesat.

“This exciting new project with Nortel capitalizes on advanced satellite

technology to open new markets throughout the world.''

Nortel Satellite Network Solutions leverage the company's entire

portfolio of world-class telecommunications products and services to address

the needs of satellite service operators. Today, Nortel offers the Satellite

Access Solution using the Nortel Small Wireless Switch to provide economical

infrastructure alternatives to operators serving remote and low subscriber

density areas.

Nortel and Telesat both recently announced research and development

initiatives with the Canadian Space Agency to develop advanced satellite

network systems.

Nortel