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Nortel Networks Strengthens Leadership Position in Voice over IP, Analyst Reports Confirm

  • 03 March, 2004 17:02

<p>March 2, 2004
Synergy Research, In-Stat/MDR Say Nortel Networks #1 in Softswitch, Carrier Packet Voice Gateways for 2003</p>
<p>RESEARCH TRIANGLE PARK, N.C. - Further solidifying its position as the world's leading provider of voice over Internet Protocol (VoIP) solutions, Nortel Networks* [NYSE/TSX: NT] was #1 globally in the softswitch market and in carrier packet gateway ports shipped for the fourth quarter and the entire year of 2003, according to recent reports from Synergy Research Group** (SRG) and In-Stat/MDR.</p>
<p>Nortel Networks had a 38.1 percent share of the global softswitch market in 2003, almost 30 percentage points higher than the nearest competitor, according to SRG. This included a 50.8 percent share in the fourth quarter.</p>
<p>SRG also reported that Nortel Networks had 42.3 percent of all carrier packet voice gateway ports shipped in 2003, a nine percentage point increase over 2003 and nearly double the nearest competitor. This included a 49.4 percent share in the fourth quarter.</p>
<p>Nortel Networks was also the global leader in high density VoIP gateway ports shipped in 2003 with 53.3 percent, including a 55.6 percent share in the fourth quarter, according to SRG.</p>
<p>"Nortel Networks has continued its momentum in the voice over IP marketplace in 2003 with an established global customer base including Verizon and Hong Kong Broadband," said Jeremy Duke, president and chief executive officer, Synergy Research Group. "Nortel Networks leadership during 2003 is a strong indicator of the accelerating pace of global voice over IP deployments."</p>
<p>In-Stat/MDR showed Nortel Networks as #1 globally in the softswitch market in 2003 at 31.1 percent. Nortel Networks led in overall carrier packet voice gateway shipments with 38.9 percent in 2003, including 46.9 percent in the fourth quarter, according to In-Stat/MDR. Nortel Networks also led carrier access gateway line shipments in 2003 with 87.9 percent, including 82.8 percent in the fourth quarter, according to In-Stat/MDR.</p>
<p>"Nortel Networks dominance in access gateway line shipments reflects its market leadership in Class 5 deployments and strong 'greenfield' momentum with announced wins like Cable &amp; Wireless Cayman Islands," said Norm Bogen, director of wide area networking infrastructure and services, In-Stat/MDR.</p>
<p>Nortel Networks is providing its proven portfolio of voice over IP and multimedia products and services to leading operators around the world, including Verizon, Bell Canada, MCI, Hong Kong Broadband Network, China Netcom and China Railcom.</p>
<p>Nortel Networks is an industry leader and innovator focused on transforming how the world
communicates and exchanges information. The Company is supplying its service provider and enterprise customers with communications technology and infrastructure to enable value-added IP data, voice and multimedia services spanning Wireless Networks, Wireline Networks, Enterprise Networks, and Optical Networks. As a global company, Nortel Networks does business in more than 150 countries. More information about Nortel Networks can be found on the Web at</p>
<p>Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include, among other things: the sufficiency of our restructuring activities, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions; continued reductions in spending by our customers; fluctuations in operating results and general industry, economic and market conditions and growth rates; the communication by our auditors of the existence of material weaknesses in internal control; the ability to recruit and retain qualified employees; fluctuations in cash flow, the level of outstanding debt and our current debt ratings; the ability to meet the financial covenant in our credit facilities; the use of cash collateral to support our normal course business activities; the dependence on our subsidiaries for funding; the impact of our defined benefit plans and our deferred tax assets on our results of operations, cash flows and compliance with our financial covenant; the dependence on new product development and our ability to predict market demand for particular products; the ability to integrate the operations and technologies of acquired businesses in an effective manner; the impact of rapid technological and market change; the impact of price and product competition; barriers to international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; the impact of rationalization in the telecommunications industry; changes in regulation of the Internet; the impact of the credit risks of our customers and the impact of customer financing and commitments; stock market volatility generally and as a result of acceleration of the settlement date or early settlement of our purchase contracts; risks associated with a consolidation of our common shares; the impact of supply and outsourcing contracts that contain delivery and installation provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; the future success of our strategic alliances; and the adverse resolution of litigation, intellectual property disputes and similar matters. For additional information with respect to certain of these and other factors, see the most recent Form 10-Q and Form 10-K filed by Nortel Networks with the United States Securities and Exchange Commission. Unless otherwise required by applicable securities laws, Nortel Networks 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 Networks, the Nortel Networks logo, the Globemark, Business Without Boundaries and Succession are trademarks of Nortel Networks.</p>
<p>**Synergy Research Group numbers are based on the "Preliminary Carrier Packet Voice Worldwide Market Shares" report published on February 20, 2004.

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