Nortel Sees Jt Marketing, New Pdts In Bay Network Merger
By MARK BOSLET
Dow Jones Newswires
PALO ALTO, Calif., -- Northern Telecom Ltd. (NT) plans joint marketing
efforts with Bay Networks Inc. (BAY) immediately upon closing its $9.1
billion merger.
A first wave of jointly-developed products will reach the market about
six months later, Nortel Chief Executive John A. Roth said.
Roth declined to describe the products, but said Nortel has a gateway
under development that Bay's engineering would probably be able to speed
up. Gateways are used to consolidate voice traffic, such as phone
service, for transmission over data networks, allowing cost savings.
Speaking at the Churchill Club, Roth said Nortel went after Bay Networks
to get the networking equipment maker's routing technology and its
presence in the corporate marketplace.
Industry experts see routing, with its IP, or Internet foundation, as a
key technology for the integration of voice and data networks. Nortel is
interested in this emerging market and the more rapid growth the
convergence will bring. The company said it plans to put Bay's routing
technology into its public network products.
Similarly, Bay's dealings with corporate customers will give Nortel an
early indication of what products companies will need.
Roth said the joint marketing efforts should bring immediate benefits to
both companies. Nortel's position in the WAN, or wide area network
operated by telecommunications companies, and Bay's position in the LAN,
or campus network, will be complementary.
In discussing the convergence of voice and data networks, Roth said
"this is coming a lot faster than anyone expects."
The driving force will be putting voice traffic over IP, or data
networks because of the cost savings. But what people want to do over
time is run commerce over the Net, he said.
Roth pointed out that data traffic is growing at 40% a year while voice
traffic is growing at 3% a year.
-By Mark Boslet; 650 496-1366 |
