Nortel

Businesses tired of grappling sky-high outsourced conferencing bills can now rein in those expenses - and watch employee productivity soar - through an in-house Nortel  (NYSE/TSX: NT) audio-and-video solution that makes anytime, anywhere collaboration simple.

By giving every employee access to their own always-open desktop conference room, workers can quickly connect with anyone, anywhere in the world without the hassle of making a reservation. Multimedia Conferencing 5.0, the newest product in Nortel’s Unified Communications portfolio, cuts costs dramatically by eliminating third-party conference operator fees, which can range from 3 cents to 20 cents per minute. With Nortel’s latest solution, companies can expect full payback in as few as six to 24 months.

“Customers have told us that pressures to improve business performance and reduce travel costs are forcing more and more employees to meet virtually - the challenge is to do it without breaking the bank,” said Dave Murashige, general manager, Multimedia Applications, Nortel. “With Multimedia Conferencing 5.0, businesses get a low-cost software-based solution that stems the pain of pay-as-you-go collaboration.”

According to Wainhouse Research**, significant benefits - including, cost reductions, simplified integration and enhanced security - have fueled a strong movement among organizations to bring collaboration tools in house. It also notes that presence-based systems that support audio and video communications allow workers to resolve problems faster and to process 25-35 percent more transactions per hour, leading to direct bottom-line improvements.

United Kingdom-based consulting firm Unified Group, which has recently been engaged in trials with Multimedia Conferencing 5.0, says it is “absolutely thrilled” with the product: “Multimedia Conferencing combined with Microsoft LCS is giving our employees the ability to work more effectively through a single desktop interface for audio and video conferences, desktop calling, presence and instant messaging,” said George Vlismas, manager of Unified Technical Projects, Unified Group.

Multimedia Conferencing 5.0 is highly scalable and fully integrated with Nortel’s flagship Communication Server 1000 as well as Microsoft’s Live Communications Server 2005 and Office Communicator 2005. The Nortel and Microsoft integration provides a single desktop environment for instant messaging, presence, audio/video conferencing and desktop communication. Integration with Microsoft’s Office Communications Server 2007 is expected in the first quarter of 2008.

The integration of Multimedia Conferencing 5.0 is the latest component of the Nortel and Microsoft Innovative Communications Alliance. In October, Nortel unveiled plans to be first-to-market with the industry’s broadest portfolio of Unified Communications solutions and applications built around Microsoft’s new Office Communications Server 2007 and Office Communicator 2007.

For more information on Multimedia Conferencing 5.0 as well as other products in Nortel’s Unified Communications portfolio, please visit http://www.nortel.com/conferencing.

About Nortel

Nortel is a recognized leader in delivering communications capabilities that make the promise of Business Made Simple a reality for our customers. Our next-generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel’s technologies are designed to help eliminate today’s barriers to efficiency, speed and performance by simplifying networks and connecting people to the information they need, when they need it. Nortel does business in more than 150 countries around the world.

Timico Ltd., a UK provider of converged communication services, has become the first service provider in the UK to work with Nortel* [NYSE/TSX: NT] to launch a tailor-made, hosted VoIP service for SMBs incorporating a PC-based multimedia voice and video application that fully integrates with Microsoft® Outlook® messaging and collaboration client.

This addition to Timico’s VoIP for Business service will enable SMBs to improve efficiency and productivity by allowing them to dial colleagues, suppliers, business partners and customers using a simple click of the mouse within their Microsoft® Outlook® business application. By combining the Nortel Application Server 5200 with Microsoft® Outlook®, the often lengthy process of looking up a contact telephone number and picking up the phone to make the call can be shortened to “one click” access. Moreover, if the call is made between two Timico VoIP for Business users, presence capabilities can be used to determine if the person being called is available, busy or away from their desk.

The PC-based phone, within the VoIP for Business solution, is established on Nortel’s Application Server 5200 (AS5200) platform. The AS 5200 is Nortel’s IMS-ready, SIP applications server, which integrates voice with video, collaboration and presence services to deliver next-generation unified communication services. Users can use a Timico recommended headset with their PC SIP client or they can choose a Nortel desktop telephone handset, according to their preference.

“Timico’s VoIP for Business customers have reported how the solution transforms their business communications, reducing costs and improving productivity by allowing voice calls to be carried over the core network and providing advanced communications tools such as presence, instant messaging and a variety of collaboration tools,” says Trefor Davies, technology director at Timico. These efficiencies are further enhanced by integrating the solution with Microsoft ® Outlook® which is the application that most PC users in a business environment have constantly open because they use it for email and it contains their contact database and diaries. Another benefit to this Nortel-based VoIP system is that it is hosted by Timico so SMB end user customers don’t have to buy the equipment.”

Timico’s enterprise class VoIP service is tailored specifically for SMBs, though larger businesses could also benefit from this technology. The SIP-based, multimedia communications service delivers the kind of business communications tools that used to be the preserve of bigger enterprises. Advanced telephony services such as voice and video conferencing together with presence, instant messaging and a variety of collaboration tools, now fully integrated with Microsoft® Outlook®, are all attainable by even the smallest business.

“Timico is offering a hosted service that seamlessly integrates with the desktop,” adds Brian Day vice president, Carrier VoIP and Multimedia, EMEA, Nortel. “By making the most of Nortel VoIP technology, Timico’s Business Service for SMBs can deliver business communications tools wherever there is IP connectivity, removing the inflexibility of more traditional desktop services improving collaboration, efficiency and productivity For ease of use customers can also download their Microsoft® Outlook® interface to a PC, laptop or mobile device so they can use the applications wherever they go.”

The Timico VoIP for Business service is enhanced by the fact that the company is not only an Internet Telephony Service Provider (ITSP) but is also a Mobile Service Provider, a fixed line service provider and a QoS enabled ISP. This means that its customers can enjoy the benefits of VoIP at their main office site without having to throw away their existing PBX investment; and they can also take advantage of a toolkit of Timico services such as free calling and dial-by-extension between locations, one non-geographic number for all locations and one receptionist for all locations which can cover their home-workers and branch offices.

About Timico

A market leader in the provision of VoIP for Business services, Timico is an independent provider of fixed, mobile, internet and converged communication services to the business market and a “one stop shop” for all the communication needs for small and medium sized businesses. Founded in 2004 by a highly experienced management team, Timico brings an unrivalled understanding of its customers’ needs, delivered through its independence, its high levels of customer service and a desire to help its customers to operate more effectively. The company’s portfolio of services includes fixed line, mobile and internet voice and data services. For more information visit www.timico.co.uk**.

About Nortel

Nortel is a recognized leader in delivering communications capabilities that make the promise of Business Made Simple a reality for our customers. Our next-generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel’s technologies are designed to help eliminate today’s barriers to efficiency, speed and performance by simplifying networks and connecting people to the information they need, when they need it. Nortel does business in more than 150 countries around the world.

Speaking with the investment community, Mike Zafirovski, Nortel president and CEO, discussed how Nortel * [NYSE/TSX: NT] is successfully executing against its plan and is sharpening its focus on long-term competitiveness and growth. The interactive day-long event was held at Nortel’s headquarters in Toronto.

“One year ago, Nortel outlined a carefully thought out strategy to regain market leadership in the long term. A strong focus on operational improvements combined with key investments in growth markets framed the foundation of the plan.” said Zafirovski. “I am pleased to say we are making progress on all fronts. While there is more work to do, we are seeing traction with our customers and a wider acceptance of our technology. The accelerated evolution of the market demonstrates that the path we have chosen is the right one and that our focus areas will translate into long-term revenue growth and consistent profitability.”

At the event, senior executives described the exciting opportunities that are emerging in the industry and Nortel’s plan to compete and win.

Joel Hackney, Nortel’s recently appointed president of Enterprise Solutions, highlighted the evolution of the desktop and the opportunities this provides Nortel at the intersection of the IT and networking industries.

“Nortel is simply and effectively integrating communications-based applications with business processes to drive out the complexity faced by today’s enterprises,” said Hackney. “Across multiple methods of communications - from voice to conferencing to data networking - Nortel is providing enterprises with the industry’s most complete portfolio of unified communications (UC) solutions. In fact, the strength of Nortel’s UC portfolio was recently recognized in industry analyst research, which we view as a strong validation of our market differentiation. In addition, our Innovative Communications Alliance (ICA) with Microsoft has delivered more than 300 joint wins representing over 900,000 licenses.”

The proliferation of video and data applications is driving the need for network upgrades. Philippe Morin, president of Metro Ethernet Networks said: “The growth of video, including peer-to-peer, will have the same profound impact on networks as digital voice applications did several decades ago. To ensure network operators can increase available bandwidth quickly and affordably, Nortel delivers 40 Gbps optical solutions that will not only meet the current demand but also provide a smooth migration path to 100 Gbps without complex re-engineering”

Innovation is driving real competitive differentiation in municipalities worldwide as Nortel works with key customers to redefine the market. Morin added: “With the explosion of high-bandwidth video and data applications, the battle for metro infrastructure is also heating up. Nortel has taken a unique technology direction with our Provider Backbone Transport (PBT) which is simpler, more robust and more cost-effective than the conventional approach used today. Since our milestone contract with BT earlier this year, we have extended our leadership with 30 more carrier Ethernet contracts globally. In 2008 and beyond, we’ll focus on increasing our customer momentum and evolving our PBT offer.”

The wireless industry is presenting important opportunities to Nortel and its customers. 4G technologies such as LTE (Long Term Evolution) and WiMAX will power the future and Nortel is on the forefront of this new wave.

“The CDMA and GSM markets remain strong for Nortel, however, we have been making investments in the future of wireless to serve our customers’ expanding requirements. Nortel’s WiMAX solutions provide true mobile broadband faster and more cost-effectively than the competition,” said Richard Lowe, president, Carrier Networks. “Leapfrogging to 4G has great transformational potential for both established service providers as well as new entrants to the industry. In addition, 4G has the potential to deliver real socio-economic change for emerging countries that have previously not been able to afford the widespread deployment of advanced communications technologies.”

At the heart of today’s communications industry are two common elements: complexity and change. The way businesses and consumers are using technology is changing faster then ever before. To help customers navigate this complexity, Nortel is expanding its services and solutions capability, using its deep expertise in communications to help its customers simplify their businesses and, fundamentally, drive a new growth business for the company.

“Some within our industry underestimate the profound nature and complexity of the changes taking place. Nortel understands our customers’ challenges very well, and is delivering a comprehensive solutions portfolio that allows them to maximize their technology investments as well as to design, build and operate their networks,” said Dietmar Wendt, president, Global Services and Solutions, Nortel. “We are gaining traction in growth areas, rolling out targeted vertical solutions, and have the best portfolio of end to end multimedia solutions in the market. This includes a showcase Telepresence solution that brings together an ecosystem of partners to deliver a solution that is open and compatible with any other network - a claim our competitors can’t make.”

Commenting on Nortel’s ongoing transformation, Zafirovski concluded: “Today, we are engaging with customers at a fundamentally different level from a year ago. They are seeing proof of our determination to deliver best-in-class innovation more simply and cost-effectively. And, they are responding by signing-up with Nortel for the long-term, worldwide. Across the company, the engine room is improving, customers are responding and employees are delivering. We have a long road ahead of us, but the new Nortel is starting to take shape.”

About Nortel

Nortel is a recognized leader in delivering communications capabilities that make the promise of Business Made Simple a reality for our customers. Our next-generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel’s technologies are designed to help eliminate today’s barriers to efficiency, speed and performance by simplifying networks and connecting people to the information they need, when they need it. Nortel does business in more than 150 countries around the world. For more information, visit Nortel on the Web at www.nortel.com. For the latest Nortel news, visit www.nortel.com/news.

Starting in 2008, Verizon Business will be even better positioned to deliver network capacity across Europe for high-bandwidth applications like video and advanced business services with an optical network supported by Nortel* [NYSE/TSX: NT] equipment. The equipment purchase supports 10G services as well as emerging 40G services and will allow Verizon** Business to deliver greater capacity to its large enterprise customers to meet their increasing bandwidth requirements.

The ultra long haul (ULH) optical network will carry a large portion of the Verizon Business European network traffic and will be deployed across multiple countries including the United Kingdom, France, Belgium, Germany and the Netherlands. In addition, the next-generation, ultra-long haul optical network allows Verizon Business to meet the growing bandwidth demand while simplifying network operations.

“Verizon Business has taken a bold, forward-looking approach to building out its network,” said Philippe Morin, president, Metro Ethernet Networks, Nortel. “It provides the ability to deliver the bandwidth capacity that service providers and businesses require today and the critical ability to evolve seamlessly to 40G when needed. Of course the true beneficiaries are the end-users who will be able to take advantage of future high-bandwidth services and applications to meet their growing business needs throughout Europe.”

Nortel Global Services is assisting with the deployment, providing turn-key installation services for Verizon Business and will include support for integration into existing management systems and Network Operation Center facilities.

The Verizon Business optical network is based on the Optical Multiservice Edge 6500, a next-generation optical convergence platform. The solution allows service providers to deliver high-growth, high-bandwidth broadband services with quickest time to revenue and one of the lowest deployment and operational costs. The solution also features Nortel’s unique electronic Dynamically Compensating Optics (eDCO), which simplifies networking by extending 40G wavelengths over thousands of kilometers without requiring dispersion compensation modules, greatly simplifying the network.

Verizon Business is also using the Common Photonic Layer (CPL) which enables the migration to a more agile, adaptive, all optical intelligent network. Also part of the solution, Nortel’s Reconfigurable Optical Add/Drop Multiplexing (ROADM) technology provides operational simplicity and network agility for the easy addition and routing of new services, resulting in a more cost-effective, reliable infrastructure. In addition, the Nortel Optical Network Manager will provide the required operations administration and management for the network, advanced network and service management and network planning tools for end-to-end wavelength layer management.

About Nortel

Nortel is a recognized leader in delivering communications capabilities that make the promise of Business Made Simple a reality for our customers. Our next-generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel’s technologies are designed to help eliminate today’s barriers to efficiency, speed and performance by simplifying networks and connecting people to the information they need, when they need it. Nortel does business in more than 150 countries around the world. For more information, visit Nortel on the Web at www.nortel.com. For the latest Nortel news, visit www.nortel.com/news.