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Nortel Eases Path to Unified Communications With New Services, Centers

  • 18 January, 2007 11:16

<p>NEW YORK – Nortel* [NYSE/TSX: NT] has added 11 core integration services and a structured convergence integration approach for customers – featuring regional collaboration centers jointly staffed and operated with Microsoft* – to its growing portfolio of services designed to help ease the path to unified communications for businesses around the world.</p>
<p>In addition, Nortel has enhanced its proven deployment expertise in real-time IP and unified communications by achieving Microsoft’s elite Gold Certified Partner status.</p>
<p>These new services and resources will make it easier for businesses to break down barriers between voice, e-mail, instant messaging, multimedia conferencing and other forms of communication, enabling them to improve business processes, increase collaboration among employees, and speed decision making.</p>
<p>They were announced today at a customer event in New York City hosted by Steve Ballmer, chief executive officer, Microsoft, and Mike Zafirovski, president and chief executive officer, Nortel.</p>
<p>“Nortel Global Services provide a complete, end-to-end solution, making it very simple for businesses to realize the benefits of unified communications,” said Dietmar Wendt, president Global Services, Nortel. “Customers gain immediate access to a wealth of experience in design and deployment with limited investment in people and capital. Very few companies have this level of expertise, a real competitive differentiator for Nortel.”</p>
<p>The expanded integration services portfolio spans the entire network lifecycle from design and deployment to support and evolution. Services available today include IT business consulting to help analyze alternatives and create business cases; VoIP, data network and security assessments to determine network readiness; network and security design; Nortel Communication Server 1000 implementation; Microsoft Live Communications Server 2005 configuration; dialing plan modification; program management; and on-going technical support.</p>
<p>These services are delivered by a staff of more than 2,200 Nortel VoIP experts worldwide that will be expanded as unified communications deployments ramp up. They are supported by the 10,000-strong Nortel Global Services team and a global ecosystem of services partners.</p>
<p>Ballmer and Zafirovski also detailed a structured convergence integration approach featuring a worldwide network of Innovative Communications Alliance Collaboration Centers. These regional centers will offer hands-on design and proof-of-concept workshops to help customers evaluate the technology and understand how it can meet business needs. The first two are open for business in Raleigh, N.C. and Maidenhead in the U.K. Nortel plans to open two additional centers by year-end 2007.</p>
<p>“By combining facilities for multi-vendor systems integration with resources and expert staff from both Microsoft and Nortel, these centers can help enterprises plan their transition to unified communications faster, seamlessly and more cost-effectively,” Wendt said.</p>
<p>To achieve Microsoft Gold Certified Partner status, Nortel proved its knowledge, skills and commitment to helping implement unified communications solutions tailored to individual customer needs by meeting or exceeding the highest performance criteria and demonstrating robust, efficient and scalable customer implementations of Microsoft technology.</p>
<p>Nortel’s worldwide ecosystem of services partners leverages the expertise of industry leaders like Microsoft and HP to provide comprehensive enterprise business communications solutions.</p>
<p>A lead Nortel partner in unified communications since 2005, HP provides extensive applications integration experience, and is working closely with Microsoft and Nortel in bringing Microsoft Exchange Server 2007 and the 2007 Microsoft Office system to market.</p>
<p>“Working together across IT departments, we can simplify the move to unified communications with innovative solutions for IT infrastructure, IP call management, conferencing, e-mail, unified messaging, mobility, and desktop and notebook services,” said Robb Rasmussen, vice president, Portfolio, Marketing and Alliances, HP Services. “This makes it easier for enterprises to increase collaboration and productivity across individuals, teams and organizations.”</p>
<p>About Nortel</p>
<p>Nortel is a recognized leader in delivering communications capabilities that enhance the human experience, ignite and power global commerce, and secure and protect the world’s most critical information. Our next-generation technologies, for both service providers and enterprises, span access and core networks, support multimedia and business-critical applications, and help eliminate today’s barriers to efficiency, speed and performance by simplifying networks and connecting people with information. Nortel does business in more than 150 countries. For more information, visit Nortel on the Web at For the latest Nortel news, visit</p>
<p>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. Further, actual results or events could differ materially from those contemplated in forward-looking statements as a result of the following (i) risks and uncertainties relating to Nortel’s restatements and related matters including: Nortel’s most recent restatement and two previous restatements of its financial statements and related events; the negative impact on Nortel and NNL of their most recent restatement and delay in filing their financial statements and related periodic reports; legal judgments, fines, penalties or settlements, or any substantial regulatory fines or other penalties or sanctions, related to the ongoing regulatory and criminal investigations of Nortel in the U.S. and Canada; any significant pending civil litigation actions not encompassed by Nortel’s proposed class action settlement; any substantial cash payment and/or significant dilution of Nortel’s existing equity positions resulting from the approval of its proposed class action settlement; any unsuccessful remediation of Nortel’s material weaknesses in internal control over financial reporting resulting in an inability to report Nortel’s results of operations and financial condition accurately and in a timely manner; the time required to implement Nortel’s remedial measures; Nortel’s inability to access, in its current form, its shelf registration filed with the United States Securities and Exchange Commission (SEC), and Nortel’s below investment grade credit rating and any further adverse effect on its credit rating due to Nortel’s restatements of its financial statements; any adverse affect on Nortel’s business and market price of its publicly traded securities arising from continuing negative publicity related to Nortel’s restatements; Nortel’s potential inability to attract or retain the personnel necessary to achieve its business objectives; any breach by Nortel of the continued listing requirements of the NYSE or TSX causing the NYSE and/or the TSX to commence suspension or delisting procedures; (ii) risks and uncertainties relating to Nortel’s business including: yearly and quarterly fluctuations of Nortel’s operating results; reduced demand and pricing pressures for its products due to global economic conditions, significant competition, competitive pricing practice, cautious capital spending by customers, increased industry consolidation, rapidly changing technologies, evolving industry standards, frequent new product introductions and short product life cycles, and other trends and industry characteristics affecting the telecommunications industry; the sufficiency of recently announced restructuring actions, including the potential for higher actual costs to be incurred in connection with these restructuring actions compared to the estimated costs of such actions and the ability to achieve the targeted cost savings and reductions of Nortel’s unfunded pension liability deficit; any material and adverse affects on Nortel’s performance if its expectations regarding market demand for particular products prove to be wrong or because of certain barriers in its efforts to expand internationally; any reduction in Nortel’s operating results and any related volatility in the market price of its publicly traded securities arising from any decline in its gross margin, or fluctuations in foreign currency exchange rates; any negative developments associated with Nortel’s supply contract and contract manufacturing agreements including as a result of using a sole supplier for key optical networking solutions components, and any defects or errors in Nortel’s current or planned products; any negative impact to Nortel of its failure to achieve its business transformation objective; additional valuation allowances for all or a portion of its deferred tax assets; Nortel’s failure to protect its intellectual property rights, or any adverse judgments or settlements arising out of disputes regarding intellectual property; changes in regulation of the Internet and/or other aspects of the industry; Nortel’s failure to successfully operate or integrate its strategic acquisitions, or failure to consummate or succeed with its strategic alliances; any negative effect of Nortel’s failure to evolve adequately its financial and managerial control and reporting systems and processes, manage and grow its business, or create an effective risk management strategy; and (iii) risks and uncertainties relating to Nortel’s liquidity, financing arrangements and capital including: the impact of Nortel’s most recent restatement and two previous restatements of its financial statements; any inability of Nortel to manage cash flow fluctuations to fund working capital requirements or achieve its business objectives in a timely manner or obtain additional sources of funding; high levels of debt, limitations on Nortel capitalizing on business opportunities because of support facility covenants, or on obtaining additional secured debt pursuant to the provisions of indentures governing certain of Nortel’s public debt issues and the provisions of its support facility; any increase of restricted cash requirements for Nortel if it is unable to secure alternative support for obligations arising from certain normal course business activities, or any inability of Nortel’s subsidiaries to provide it with sufficient funding; any negative effect to Nortel of the need to make larger defined benefit plans contributions in the future or exposure to customer credit risks or inability of customers to fulfill payment obligations under customer financing arrangements; any negative impact on Nortel’s ability to make future acquisitions, raise capital, issue debt and retain employees arising from stock price volatility and further declines in the market price of Nortel’s publicly traded securities, or the share consolidation resulting in a lower total market capitalization or adverse effect on the liquidity of Nortel’s common shares. For additional information with respect to certain of these and other factors, see Nortel’s Annual Report on Form10-K/A, 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.</p>
<p>*Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks. Microsoft is a registered trademark of Microsoft Corp. in the United States and other countries.</p>

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