[Telefonica Moviles Peruvian operator finalizes first phase of 3G nationwide expansion based on CDMA2000 1X.]

Lima, Peru -- The Peruvian operator of the Telefonica Moviles Group has begun offering a comprehensive line-up of third generation (3G) mobile services nationwide using an advanced wireless data network solution from Nortel Networks. Telefonica Moviles first launched these new services in November 2003 in the capital city of Lima and has now finalized the first phase of expansions of its 3G network in the provinces.

The new network -- based on CDMA2000 1X technology -- positions the Telefonica Moviles affiliate as the leading operator in Peru in offering advanced mobile data services like high-speed Web browsing, video downloads, single and multi-user games, sending and receiving e-mails and photos, chat, ring tones, location-based services and many more.

Nortel Networks began the overlay of Telefonica's 3G CDMA (code division multiple access) network in the fourth quarter of 2003. This included radio base stations and base station controllers, mobility switching, software and network services.

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