Nortel Networks Drives Next Generation of Multimedia, Packet Voice Services

Business Wire, Feb 18, 2003

Business Editors/High-Tech Writers

RESEARCH TRIANGLE PARK, N.C.--(BUSINESS WIRE)--Feb. 18, 2003

Announces Comprehensive Succession Services Initiative Including

'Road Map,' Services Suite, Product Enhancements, Expanded

Co-Marketing Program

Nortel Networks (NYSE:NT)(TSX:NT) today introduced its comprehensive Succession Services initiative, designed specifically to help wireline and wireless service providers generate new revenues by facilitating mass market deployment of next generation services that business and consumers value.

These new services will help simplify communications and increase mobility by integrating multiple devices and media -- such as e-mail, cell phones, home telephones and PDAs (personal digital assistants) -- into a single, simple communications session.

"Twenty years ago, service providers introduced a whole new range of services -- like call waiting and caller ID -- that were embraced by both residential and business users and improved the way we all communicate," said Sue Spradley, president, Wireline Networks, Nortel Networks. "We view the Succession Services initiative as the next logical step, one that will deliver a new suite of services that may one day become as ubiquitous as call waiting."

"As a service provider, the challenge in delivering innovative new services is to find a cost-effective way to introduce them into our current business model," said Dr. Girish Pathak, chief technology officer and vice president of engineering, TELUS Communications. "We know that Nortel Networks has the expertise to help us make this transition."

In support of this initiative, Nortel Networks has also introduced a service 'road map,' product enhancements, and an expanded co-marketing program. Nortel Networks has also defined a suite of multimedia and packet voice services, including a new voice over IP (VoIP) VPN (virtual private networking) service offering.

"Service providers are facing an erosion of their business service revenues, as well as a slowdown in the growth of residential lines," Spradley said. "Wireless operators are facing increased sales and marketing costs due to the increase in customer churn rates. The challenge for both groups is to create new services to attract and retain subscribers, and build stronger customer loyalty. The Succession Services initiative is focused on this challenge."

"Nortel Networks Succession Services strategy offers seamless support of new, revenue-generating services across circuit-switched and packet infrastructures," said Brent Wilson, principal analyst, Current Analysis. "This enables service providers to protect and, in fact, extend existing network investments while seamlessly migrating their networks to packet."

At the heart of Nortel Networks Succession Services initiative is a service road map that outlines a path for carriers to drive incremental new revenues and to stimulate the enterprise and consumer demand needed to generate service volumes. This further strengthens the business case for network packetization. The improved margins from packetization will position service providers to cost-effectively add another service or expand into different geographic markets, further increasing revenue opportunities.

Nortel Networks has introduced a new managed service offering -- Succession Voice over IP Virtual Private Networks -- to help service providers generate incremental revenue.

This service offering complements Nortel Networks newly defined suite of hosted multimedia and packet voice services, which also includes: Succession Centrex/Centrex IP, Personal Communications Manager, Multimedia and Collaboration, Internet Voice and Primary Voice. These services can be delivered to users over a variety of communication devices, including existing telephones.

To help service providers 'mix-and-match' these services into attractive service bundles that complement their existing offerings, Nortel Networks will introduce several product enhancements, including:

-- Adding H.323 interfaces to Succession softswitches to support direct packet interworking with H.323 IP PBX systems and gateways. This will enable converged VoIP VPN services to be offered to the growing enterprise base of IP PBXs.

-- Expanding support for Session Initiation Protocol (SIP) on Succession softswitches to support direct packet interworking with SIP-based enterprise PBXs or gateways. This will position service providers to offer VoIP VPNs on an even broader scale.

-- Expanding support for SIP on Succession softswitches to encompass both SIP and SIP-T on the trunk side. This extends the interworking capabilities of Succession softswitches to third party application servers, enabling carriers to offer a wider range of new services.

-- Adding SIP extensions that uniquely integrate Succession softswitches and Succession Interactive Multimedia Server (IMS) to enhance the multimedia feature set that carriers can deliver to existing phones.

-- Adding SIP proxy capability to Succession softswitches to allow multimedia traffic to cross enterprise and PSTN domains and carrier boundaries more efficiently.