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Kodak Renews U.S. Voice Services Outsourcing Deal With Nortel
New York (ots/PRNewswire) -
- Extension Through 2008 Includes Upgrade to IP-Enabled Communication Server
Eastman Kodak Company has agreed to a three-year renewal of an existing agreement with Nortel(1) [NYSE/TSX: NT] for management of its U.S. voice network.
The renewal, signed earlier this year, calls for Nortel to continue managing Kodak's U.S. network of PBXs and telephone services through 2008. It also includes upgrading an existing Meridian(1) SL-100(1) switch to an IP-enabled Communication Server 2100. This upgrade will allow Kodak to provide VoIP capability when cost-effective for requirements such as worker mobility.
Kodak, which has outsourced its voice network to Nortel since 1995, will continue to benefit from Business Made Simple through lower capital and operating costs. Kodak will also gain an infrastructure better prepared for future technologies without sacrificing previous investments.
"Nortel's extensive experience in providing these Network Managed Services for Kodak has provided a unique understanding of how to efficiently and cost-effectively address their communications needs," said Dietmar Wendt, president, Global Services, Nortel.
"We will continue to provide cost savings by operating and managing Kodak's U.S. network," Wendt said. "And we'll work with Kodak to address both current and future needs - including migration to VoIP if and when it makes sense - without requiring them to take on the costs associated with buying, implementing and operating new equipment."
Nortel provides network management and maintenance for Kodak's voice network, including remote fault monitoring with proactive network surveillance, customer-defined service level agreements for response and resolution, moves and changes, comprehensive customer reporting, and dedicated service management.
Nortel Network Managed Services provide multi-vendor, multi-technology network and performance management, assisted operations, hosted solutions and managed security across wireless and wireline data and voice networks. These services are focused on helping customers transition from legacy networks to converged solutions and next-generation technology. Network Managed Services are part of the Nortel Global Services portfolio, which offers a full range of network application, implementation, and support services for end-to-end multi-vendor networks.
Nortel's Communication Server 2100 is a carrier-grade, IP softswitch for large campuses and geographically dispersed enterprises. Scalable from 5,000 to 200,000 ports, Communication Server 2100 can be used to implement a pure IP network, or to add IP capability in a hybrid network architecture that preserves previous investments in TDM equipment.
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 www.nortel.com. For the latest Nortel news, visit www.nortel.com/news.
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 objectives, including completion of the sale of its UMTS access business to Alcatel-Lucent; 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.
1) Nortel, the Nortel logo, the Globemark, Meridian and SL-100 are trademarks of Nortel Networks.
ots Originaltext: Nortel Networks
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