Nortel Networks Enables `Future-Proof' SIP Capabilities with Preferred Software Membership
LOS ANGELES--June 7, 2004--| Strengthens Leadership Position by Providing Choice in How, Where Customers Communicate |
Nortel Networks has introduced a Preferred Software Membership program that will give customers access to future software releases to enable powerful SIP (session initiation protocol)-based applications for 'anytime, anywhere' communications while helping to protect existing investments in multimedia and telephony platforms. The Preferred Software Membership program is designed to help keep customers current and to simplify management of software upgrade purchase decisions as they move to SIP-based applications.
Nortel Networks is a worldwide leader in delivering SIP innovation with customers and partners like Bell Canada, Charter Communications, Dacom, Erlanger Health System, the FedEx Institute of Technology at the University of Memphis, the University of Michigan, Monster, OneConnect, SBC, SaskTel, Sungard, TeliaSonera, Texas A&M University and Verizon Communications.
Announced at Global Connect 2004, the annual conference of the International Nortel Networks Users Association (INNUA), the Preferred Software Membership program is Nortel Networks next step in delivering simplified, SIP-based, converged communications solutions that will serve to integrate for participating members the productivity and efficiency improvements available through multimedia and collaborative applications with the utility, reliability and familiarity of traditional business telephony. In addition to helping participating members 'future proof' their networks, this program can also help enterprises develop more accurate budget projections while realizing the full benefit of SIP-based technologies and business processes.
"As companies increasingly assess their network convergence projects, they seek vendors who support open standards and provide for a hybrid migration strategy," says Robin Gareiss, principal research officer, Nemertes Research. "Nortel Networks is well-positioned to meet those demands, giving companies the option to gradually migrate traditional voice and video traffic to a single IP (Internet Protocol) network to leverage SIP multimedia applications."
Customers who participate in the Preferred Software Membership program can upgrade to current software on their Nortel Networks enterprise multimedia platforms via an authorized Nortel Networks distribution partner and secure future software releases at a pre-determined fixed rate for a period ranging from one to three years. Customers can benefit from software upgrades that will extend their SIP-based functionality to include collaborative applications like instant messaging, file exchange and video calling. Additional capabilities like geographic redundancy, video conferencing, enhanced chat room environments, and 'meet me' conferencing can also be made available as fee-based options.
"Our customers tell us they want innovative networking solutions that will allow their employees to more easily collaborate with the people and companies they work with on a daily basis, no matter where they are located or how they're connected to the network," said Malcolm Collins, president, Enterprise Networks, Nortel Networks. "This announcement is about just that - eliminating geographical and organizational boundaries to better facilitate sharing information and making people more productive. That is why we are committed to leading the industry in the move toward SIP."
"For many companies, their employees spend more than 30 percent of their time away from their physical office, so enterprises have a real need to leverage technology to make the best use of today's mobile workforce," said Karen Titus, president, INNUA. "We are pleased to see Nortel Networks provide a cost-effective pathway for customers to migrate their infrastructure moving forward and ultimately bring new choices in how and where enterprise organizations can communicate."
Nortel Networks leadership position in delivering SIP innovation builds on a heritage of strength in delivering business telephony solutions. Nortel Networks led in Global telephony shipments across IP Telephony, PBX and KTS segments in 2003 and in first quarter of 2004, according to Synergy Research Group and the Dell'Oro Group. In 2003, Nortel Networks was also #1 in premises switching equipment line shipments (traditional PBX/KTS, IP-enabled PBX, and pure IP-PBX lines) in North America , according to Gartner(a).
Nortel Networks is uniquely-positioned to provide multimedia-ready network infrastructures best-suited to supporting SIP-based applications. Nortel Networks continues to deliver the network building blocks for: Business Continuity, ensuring real-time applications are always available to minimize costs associated with disruption; Optimization for Business Performance, by maximizing application response time, enabling new multimedia applications; Customer Trust through secure applications control; and Business Efficiency through lowered total cost of ownership, as well as provisioning and control capabilities that enable unparalleled ease of operation.
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 www.nortelnetworks.com or www.nortelnetworks.com/media_center.
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 outcome of Nortel Networks independent review and planned restatement of its previously announced or filed financial results; the impact of the management changes announced on April 28, 2004; the impact of the inability to meet Nortel Networks filing obligations on support facilities and public debt obligations; the sufficiency of Nortel Networks 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 Nortel Networks customers; fluctuations in Nortel Networks operating results and general industry, economic and market conditions and growth rates; the communication by Nortel Networks auditors of the existence of material weaknesses in internal control; Nortel Networks ability to recruit and retain qualified employees; fluctuations in Nortel Networks cash flow, level of outstanding debt and current debt ratings; the use of cash collateral to support Nortel Networks normal course business activities; the dependence on Nortel Networks subsidiaries for funding; the impact of Nortel Networks defined benefit plans and deferred tax assets on results of operations and Nortel Networks cash flows; Nortel Networks dependence on new product development and its ability to predict market demand for particular products; Nortel Networks 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 Nortel Networks 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 Nortel Networks purchase contracts; the impact of Nortel Networks 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 Nortel Networks strategic alliances; and the adverse resolution of litigation, investigations, 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/A and Form 10-K/A 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.
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(a) "Market Share: Premises Switching Equipment, North America 2003," Megan Marek Fernandez, Gartner, May 2, 20045, 2004
Use of the terms "partner" and "partnership" does not imply a legal partnership relationship between Nortel Networks and any other party.