Official release this time on Telstra win by NT in Australia
nortelnetworks.com
Telstra Selects Nortel Networks to Deliver Next-Generation
Internet Services
Expands business with Nortel Networks up to an estimated US $650 Million
over 5 years for IP networking solutions and services, and Wireless
MELBOURNE, Australia -- Nortel Networks* [NYSE/TSE: NT] announced
that it has been selected to provide advanced Internet Protocol (IP)
networking solutions as well as support services to Telstra, Australia's
leading carrier and service provider. These solutions and services are
estimated to be worth between US$100 million and US$200 million and cover
components of Telstra's prestigious project called Data Mode of Operation
(DMO). This tender was hotly contested by several competitors.
The latest win builds on Nortel Networks' strong relationship with Telstra,
which also includes the construction of a national CDMA wireless network in
Australia, announced in 1998, and trials of high-speed Wireless Internet
services. The overall business with Telstra is estimated to potentially be
worth up to US$650 million over five years.
"This project signals a transition to Telstra being a globally significant,
full-service, 21st century, company with a converged IP core network
integrating telephony, data, Internet and multimedia services to our
customers," said Gerry Moriarty, Telstra's Group managing director, Network
and Technology Group and responsible for the DMO project. "We chose
Nortel Networks as a partner to compete in the IP World because of their
proven track record with us in wireless, data and telephony solutions, and
their leading carrier-grade strength in IP networking and Internet services
portfolio."
"Nortel Networks has had a string of wins in the global carrier market
recently which is a strong endorsement of the successful integration of IP
technologies acquired from Shasta Networks, Aptis and Bay Networks into
an unbeatable portfolio of IP networking solutions, " said Reg Bird, president,
Nortel Networks Asia South Pacific. "This portfolio also includes Passport
multi-service switching solutions that enable carriers to build an integrated
infrastructure to deliver voice, data and video services."
"Against fierce competition and extensive evaluation, we have successfully
demonstrated that Nortel Networks has the networking products and
expertise to support Telstra in delivering next-generation Internet services in
Australia and winning in the Internet economy," said Kevin Dearsley, general
manager of the Telstra account at Nortel Networks.
Australia has been the service and support centre for Nortel Networks'
Asia-Pacific data customers for many years. In response to the Telstra DMO
win and explosive growth in data traffic, there are plans to grow the
Melbourne-based regional centre of excellence by expanding its support of
next-generation Internet services. These plans build on Nortel Networks'
recent announcement of a five-year, A$150 million R&D investment in
Australia, and other R&D and export initiatives.
Nortel Networks delivers value to customers around the world through Unified
Networks* solutions, spanning mission-critical telephony and IP-optimised
networks. Customers include public and private enterprises and institutions;
Internet service providers; local, long-distance, cellular and PCS
communications companies, cable television carriers, and utilities.
Nortel Networks' common shares are listed on the New York, Toronto,
Montreal, Vancouver, and London stock exchanges. Nortel Networks had
1998 revenues of US$17.6 billion and has approximately 75,000 employees
worldwide.
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 impact of price and product
competition; the dependence on new product development; the impact of
rapid technological and market change; the ability of Nortel Networks to
integrate the operations and technologies of acquired businesses in an
effective manner; general industry and market conditions and growth rates;
international growth and global economic conditions, particularly in emerging
markets and including interest rate and currency exchange rate fluctuations;
unanticipated impact of Year 2000 issues; and the impact of consolidations
in the telecommunications industry. For additional information with respect
to certain of these and other factors, see the reports filed by Nortel Networks
with the United States Securities and Exchange Commission. 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.
* Nortel Networks, the Nortel Networks Globemark, Unified Networks,
Passport, and How the world shares ideas are trademarks of Nortel
Networks.
Contact for Press and Analysts:
Jeff Ferry
Nortel Networks
703-712-8339
jferry@nortelnetworks.com |
