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New Study Reveals Exploding 'Culture of Connectivity' Forcing Enterprises to Change the Way They Do Business or Be Passed By

- 16 percent of Global Business Users are "Hyperconnected" Today

OTTAWA, ONTARIO -- (MARKET WIRE) -- 05/13/08 -- An exploding 'Culture of Connectivity' is forcing enterprises around the world to change the way they do business faster than ever before or risk the opportunities of Hyperconnectivity passing them by. A new global IDC study(i) sponsored by Nortel(1) (TSX: NT)(NYSE: NT) found that not only is the speed of technology adoption accelerating - impacting business policy and IT investment - but the global workforce is increasingly expecting employers to provide similar levels of "everywhere, all the time" connectivity.

The IDC study of close to 2,400 people across 17 countries found that 16 percent of workers surveyed are already "hyperconnected", fully embracing a world of multiple devices and intense use of new communications applications. The hyperconnected worker uses a minimum of seven devices for work and personal access plus at least nine applications like IM, text messaging, web conferencing and social networks. Even more significant, the hyperconnected are closely followed by a large second group of 36 percent designated as "increasingly connected" who use a minimum of four devices for work and personal access to six or more applications. As the increasingly connected advance in capabilities - and changing demographics of the workforce are factored in - the study predicts that hyperconnected business users will likely rise to 40 percent in five years.

"The results of this study send a clear message to today's business - the hyperconnected workforce is coming and you'd better be ready," said John Gantz, chief research officer and senior vice president at IDC. "The study found that 16 percent of the global workforce is hyperconnected today, and will grow to 40 percent in just a few years. This means that the surveyed workforce isn't just migrating towards Hyperconnectivity - it is stampeding to it. Businesses that embrace this have an opportunity to increase productivity and ability to compete in the global marketplace."

"For more than a year, Nortel has been emphasizing the profound global implications of Hyperconnectivity - on the enterprise and its IT strategy. For some, these IDC study findings are a final wake-up call that they risk losing productivity and profitability if they ignore this exploding culture of connectivity," said John Roese, chief technology officer, Nortel. "For others, it confirms that Hyperconnectivity can represent huge opportunities if they choose to embrace this megatrend. These organizations can lead with critical changes to technology and business process that help them thrive as progressive enterprises."

The study surveyed men and women of various age groups in North America, Europe, Middle East, Asia Pacific and Latin America, who work across various industries and company sizes. It found the desire for personal connectivity has no national boundaries and that Hyperconnectivity is happening today. In fact, the countries with the highest percentage of hyperconnected respondents in the study were China and the United States. The country with the highest percentage of increased Hyperconnectivity was Russia.

Survey questions covered topics such as how many devices and applications an individual used, where they use them most frequently and what time of day. The survey also measured respondents' attitudes to current communications technology and assessments of how widely they adopt them for personal and business use.

"As a CIO, I'm seeing the demands from this culture of connectivity increasing every day," said Steve Bandrowzak, chief information officer, Nortel. "The IDC study really drives home that the challenges and opportunities of Hyperconnectivity could be unlike anything CIOs and IT professionals have ever experienced before. It's time for corporate management and IT to re-examine their current IT investments and business technology strategies, leveraging new tools like unified communications while preparing to modify personnel policies, security regimes and business practices."

This evolution towards increasing levels of connectivity will have a profound impact on enterprises, creating challenges in managing these new tools of connectivity while providing information securely and reliably, and ensuring that this connectivity is productive.

Key Findings of the Study included:

- 16 percent of business users are already hyperconnected

The hyperconnected have a much higher adoption of communication devices and applications than those in other clusters, they are reasonably happy with their work/life balance, even though they use almost all devices and applications for both, and are willing to communicate with work on vacation, in restaurants, from bed and even in their place of worship.

- Asia Pacific is leading the way

The largest percentage of hyperconnected are in the Asia Pacific region. And, while hyperconnected workers can be found in all countries, they are higher than average in the U.S. and China, lowest in Canada and the United Arab Emirates.

- Latin America is emerging fast with the largest percentage of Hyper / Increasingly Connected

64 percent of the workforce in Latin America is either hyperconnected or increasingly connected, compared to 59 percent in Asia Pacific, 50 percent in Europe, and 44 percent in North America.

- Europe and the Middle East rely heavily on instant and text messaging in business

Over 50 percent of EMEA respondents - more than twice the number of North American respondents - said they use instant and text messaging for business.

- 40 percent of business users will be hyperconnected within five years

With an aging workforce retiring, younger employees entering, a current majority of increasingly connected users, 40 percent of the workforce may be hyperconnected within next few years.

- Enterprises will compete for talent

As baby boomers retire, corporations will find themselves increasingly competing for talent. Hyperconnected individuals expect to work in a rich communications environment and consider the newer solutions a condition of their employment. They don't want just anywhere, anytime communications - they demand it "everywhere, all the time."

- Phones more important than wallets and keys

When asked which item people would take if they had to leave the house for 24 hours more than 38 percent of global respondents chose their mobile phone over their wallet, keys, laptop and MP3 player. Less than 30 percent chose their wallet first. In Latin America, more than 50 percent chose their mobile phone over any other item. The hyperconnecteds preferred their laptops.

- Social network adoption growing in the enterprise

More than one in three people use social networks and online communities such as blogs, wikis, and online forums for business communication - with CALA workers leading the world. Personal postings to social networks and online communities are nearly three times as common as business postings.

- Enterprises struggling with disparate communications

Nearly one in five respondents found it hard to manage multiple disparate sources of communication. Users in the finance and high tech segments are the most dissatisfied with the way their companies manage multiple communications sources. More than 25 percent said their corporate systems are slow and unreliable.

- Different industries, different stories

Hyperconnectivity varies by industry, from 9 percent of respondents in healthcare to 25 percent in high tech and 21 percent in finance industries.

- Multiple devices are the global norm

70 percent of respondents connect to the Internet at home with more than one device. In Asia Pacific that number jumps to 80 percent. Nearly 80 percent of 18 to 34 year olds connect to the Internet at home with more than one device.

To read the complete IDC white paper, "The Hyperconnected - Here They Come!", sponsored by Nortel, May 2008, or to find out more about the emerging era of hyperconnectivity, please visit: www.nortel.com/idcstudy.

About Nortel

Nortel is a recognized leader in delivering communications capabilities that make the promise of Business Made Simple a reality for our customers. Our next-generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel's technologies are designed to help eliminate today's barriers to efficiency, speed and performance by simplifying networks and connecting people to the information they need, when they need it. Nortel does business in more than 150 countries around the world. For more information, visit Nortel on the Web at www.nortel.com. For the latest Nortel news, visit www.nortel.com/news.

Certain statements in this press release may contain words such as "could", "expects", "may", "anticipates", "believes", "intends", "estimates", "targets", "envisions", "seeks" and other similar language and are considered forward-looking statements or information under applicable securities legislation. These statements are based on Nortel's current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which Nortel operates. These statements are subject to important assumptions, risks and uncertainties, which are difficult to predict and the actual outcome may be materially different from those contemplated in forward-looking statements. For additional information with respect to certain of these and other factors, see Nortel's Annual Report on Form10-K, Quarterly Reports on Form 10-Q and other securities filings with the SEC. Unless otherwise required by applicable securities laws, Nortel disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

(1) Nortel, the Nortel logo and the Globe mark are trademarks of Nortel Networks.

(i) Source: IDC White Paper, "The Hyperconnected - Here They Come!" sponsored by Nortel, May 2008

Jamie Moody
(972) 684-7167
Email: [email protected]

Mohammad Nakhooda
(905) 863-7407
Email: [email protected]

Alison Steel
+44-1628 432597
Email: [email protected]
Website: www.nortel.com

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