Nortel Networks will revamp its second-tier distribution model, upping resources to the sector in a bid to widen its market appeal.

“Our distributors play a vital role in serving that second tier,” Nortel business partner and alliance strategy manager, Mark Fioreto, said. “The idea is to assist by giving them the tools and resources to develop the flow of business.”

Nortel will provide resources such as co-marketing funds and joint training activities that aim to build on its NPower training program. That program was launched 12 months ago, and is now bearing fruit.

For example, Deloitte Touche Tohmatsu will deploy an IP Telephony solution following a trial of the system. The project is currently being rolled out in Brisbane by Nortel partner 3D Networks. The integrator is also overseeing the migration to IP telephony for IT developer Infomedia, which will connect offices in Sydney, Melbourne and Perth.

“3D Networks have been building up their own expertise internally so they have the ability to take our install base and migrate it to IP telephony,” Nortel president of enterprise solutions, Asia Pacific, Barry Southern, said.

“We are going to continue to aggressively push the channel model and continue to incent our partners so they want to work with us.”

With IP telephony reaching into more mainstream markets, Nortel was keen to maintain some “creative tension” within its channel, whilst guarding against the cut throat tactics that could destroy margins.

“We are starting to see our partners reap the benefits of their training and as their skills and ability to work with us increases, we are starting to see a lot more traction in the higher end of town,” Fioretto said.

“The important thing is for our channel to have both geographic and market coverage. As we evolve and the business evolves, so too do the partners we are dealing with.”