With the highest penetration of mobile phone subscribers of any major Russian city (at over 150 percent) and the highest Internet penetration, Comstar's new WiMAX network will bring the convenience of wireless Internet to Moscow's burgeoning hyperconnected society. Comstar will use WiMAX to provide mobile Internet services throughout the city, giving its subscribers broadband access similar to their wireline home services. Comstar subscribers will be able to use the mobile WiMAX network to access popular e-mail clients and on-line games or catch up with friends using social networking sites such as www.odnokassniki.ru.

"Comstar's mobile WiMAX network services combined with our current methods of broadband Internet access will enable us to provide a wide range of telecommunications services to our subscribers in Moscow wherever they are - at home, at the office, or on the go," commented Sergey Pridantsev, president and chief executive officer of Comstar UTS. "The new offering will increase our customers' loyalty and strengthen our position in the Moscow broadband Internet access market through a wider range of unique services."

"Nortel's WiMAX solution offers the high-bandwidth capacity and the breadth of coverage necessary to deliver broadband services to Comstar's subscribers across Moscow, facilitating the always connected experience," said Sorin Lupu, president Eastern Europe markets, Nortel.

The market for WiMAX in Russia is growing quickly with companies like Comstar leveraging its speed, capacity, and cost-effectiveness to expand their businesses and address the demand for wireless broadband. Rethink Research Associates Ltd.( 2) estimates that the number of WiMAX subscribers in Russia will grow to 1.7 million in 2010 and 4.3 million 2012.

"WiMAX is ideal technology for service providers who operate in areas like Moscow where Hyperconnectivity is becoming a way of life," said Scott Wickware, Nortel's general manager of WiMAX. "Nortel's end-to-end mobile WiMAX solution helps operators deliver fast, reliable and cost-effective wireless broadband by integrating an industry-leading base station portfolio with an ASG gateway, applications, support and system integration services. We expect Comstar's WiMAX network to be the first of many that will leverage the combined strengths of Nortel and Alvarion(R) Ltd. (NASDAQ:ALVR) based on our recently announced strategic WiMAX agreement."

The WiMAX solution which Nortel will provide to Comstar includes the WiMAX BTS 5020 (mobile WiMAX base station). This equipment will be compliant with WiMAX Forum and RosSvyaz standards.

During the first stage of the WiMAX project, Comstar will deploy over 160 mobile WiMAX (802.16e) base stations (BTS 5020). The network will also include Nortel's the Access Services Network Gateway (ASG) 5100, devices such as USB Adapters, Indoor and Outdoor Gateways, Business Support System (BSS) and Operational Support System (OSS) platforms as well as Nortel Global Services for WiMAX such as network design and training. The WiMAX solution will operate in the 2.5-2.7GHz frequency band, a section of the airwaves reserved for transmitting wireless communications.

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Keywords: mobile phone subscribers, wireless broadband network, social networking sites, mobile internet services, moscow russia, internet penetration, mail clients, integrated telecommunications, bandwidth capacity, broadband internet access, cmst, broa, WiMAX