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Nortel Networks

Nortel Wins Advanced Converged Network Contract With HOT Telecom

Airport City, Israel (ots/PRNewswire)

Nortel(1) [NYSE: NT; TSX:
NT] has won a contract via channel partner Bynet with HOT Telecom to
deploy a very large converged network at the company's new
headquarters in the town of Yakum, Israel. The overall project size
is estimated at US$1.5 million.
HOT Telecom's new converged network will equip its 1,400 employees
with anywhere, anytime access to such communication services as
voice, email and multimedia collaboration regardless of device -
telephone, computer or PDA.
Itzik Nimrodi, HOT CTO: "The converged Network that will be
provided to HOT, based on the SIP technology, will offer seamless
connectivity between the company's internal telephone system and
between the telephony system that HOT uses to provide its customers
with advanced telephone services. This latest technology will allow
the company to reduce costs and increase its efficiency
significantly."
"Nortel's seamless communications solution is designed to allow
HOT to benefit from a cost-effective, highly resilient converged
network at its new headquarters while leveraging HOT's position as an
industry-leading service provider." said Sorin Lupu, president Israel
and Eastern Europe Markets, Nortel. "This notable win continues to
broaden Nortel's footprint in the IP telephony market in Israel."
Nortel's advanced IP telephony network for HOT includes the Nortel
Communication Server 1000, Secure Multimedia Controller 2450,
designed to prevent Internet attacks on the IP Telephony system and
1,400 Nortel IP telephones.
On the infrastructure side of the solution, the network includes
the Nortel Ethernet Routing Switch 8600 and Edge switches Ethernet
Routing Switch 5520 including power over LAN, providing 10/100/1000
connectivity. As part of the data services, security applications
based on the Nortel Switched Firewall 6616 and Application Switch
3408 are used for application switching and better efficiency in the
data centre.
As part of the project, Bynet will also deploy the Nortel Contact
Center, equipping 200 HOT customer service agents to provide quicker
and more efficient service to costumers through smart routing of
calls.
About HOT Telecom
HOT is the super brand of the 3 Israeli cable companies, which
were recently placed in an operational merger with the intention of
merging their financial operations in the future. HOT's main product,
multi-channel television, serves close to one million subscribers,
65% of whom benefit from full-fledged digital service. In addition to
regular multichannel TV, HOT recently launched VoD (Video on Demand)
services based on the most advanced infrastructure. More than 200,000
clients have already subscribed to the new service. As well HOT
offers PVR (Personal Video Recorder) device to further enhance its
VoD offering. Fast internet on cable infrastructure is another
service offered by HOT. Two and a half years from launch, HOT reports
425,000 subscribers to the cable internet, which represents 38% of
Israel's broadband internet market. At the end of November 2004, HOT
began the phased introduction of fixed telephony services on an
advanced VoIP technology. By end 2005, the Company plans to serve
80,000 telephony customers.
About Nortel
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. Serving both service provider and enterprise customers,
Nortel delivers innovative technology solutions encompassing
end-to-end broadband, Voice over IP, multimedia services and
applications, and wireless broadband designed to help people solve
the world's greatest challenges. 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 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 regulatory and criminal investigations
and civil litigation actions related to Nortel's restatements and the
impact any resulting legal judgments, settlements, penalties and
expenses could have on Nortel's results of operations, financial
condition and liquidity, and any related potential dilution of
Nortel's common shares; the findings of Nortel's independent review
and implementation of recommended remedial measures; the outcome of
the ongoing independent review with respect to revenues for specific
identified transactions, which review will have a particular emphasis
on the underlying conduct that led to the initial recognition of
these revenues; the restatement or revisions of Nortel's previously
announced or filed financial results and resulting negative
publicity; the existence of material weaknesses in Nortel's internal
control over financial reporting and the conclusion of Nortel's
management and independent auditor that Nortel's internal control
over financial reporting is ineffective, which could continue to
impact Nortel's ability to report its results of operations and
financial condition accurately and in a timely manner; the impact of
Nortel's and NNL's failure to timely file their financial statements
and related periodic reports, including Nortel's inability to access
its shelf registration statement filed with the United States
Securities and Exchange Commission (SEC); the impact of management
changes, including the termination for cause of Nortel's former CEO,
CFO and Controller in April 2004; the sufficiency of Nortel's
restructuring activities, including the work plan announced on August
19, 2004 as updated on September 30, 2004 and December 14, 2004,
including the potential for higher actual costs to be incurred in
connection with restructuring actions compared to the estimated costs
of such actions; cautious or reduced spending by Nortel's customers;
increased consolidation among Nortel's customers and the loss of
customers in certain markets; fluctuations in Nortel's operating
results and general industry, economic and market conditions and
growth rates; fluctuations in Nortel's cash flow, level of
outstanding debt and current debt ratings; Nortel's monitoring of the
capital markets for opportunities to improve its capital structure
and financial flexibility; Nortel's ability to recruit and retain
qualified employees; the use of cash collateral to support Nortel's
normal course business activities; the dependence on Nortel's
subsidiaries for funding; the impact of Nortel's defined benefit
plans and deferred tax assets on results of operations and Nortel's
cash flow; the adverse resolution of class actions, litigation in the
ordinary course of business, intellectual property disputes and
similar matters; Nortel's dependence on new product development and
its ability to predict market demand for particular products;
Nortel's 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 and consolidation in the telecommunications industry;
changes in regulation of the Internet; the impact of the credit risks
of Nortel's customers and the impact of customer financing and
commitments; general stock market volatility; negative developments
associated with Nortel's supply contracts and contract manufacturing
agreements, including as a result of using a sole supplier for a key
component of certain optical networks solutions; the impact of
Nortel's 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; any
undetected product defects, errors or failures; the future success of
Nortel's strategic alliances; and certain restrictions on how Nortel
and its president and chief executive officer conduct business. For
additional information with respect to certain of these and other
factors, see the most recent Annual Report on Form 10-K and Quarterly
Report on Form 10-Q filed by Nortel 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 and the Globemark are trademarks of
Nortel Networks.
Use of the terms "partner" and "partnership" does not imply a
legal partnership between Nortel and any other party.
www.nortel.com

Contact:

Angelika Kempf, Tel: +44-(0)1628-43-7340, angelika.kempf@nortel.com,
Orit Ben-Harush, Tel: +972-8914-3491,
orit.ben-harush@nortelnetworks.com, Pat Cooper, Tel: +1-425-450-7523,
pat.cooper@nortel.com

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