To: Kenneth E. Phillipps who wrote (9518 ) 1/31/2001 7:27:11 PM From: Kenneth E. Phillipps Read Replies (1) | Respond to of 14638 Wednesday 31 January 2001 Battling the competition Nortel has high hopes for its new 'personal Internet' products SARAH DOUGHERTY The Gazette With profit margins worn thin by fierce competition, Internet service providers are racing to find new ways to generate revenue. Nortel Networks Corp. is hoping providers will jump on a new group of products that customizes Internet content for their customers. That allows providers, like phone and cable companies, to charge more for their services. Match Internet Content Launched yesterday, Nortel says its new products match Internet content to customers more quickly and more precisely. A client calling up information on a home computer or wireless device will get content in their own language tailored to their geographic location, for example. "This technology is being driven by Internet content and service providers who want to generate more revenues per subscriber," said Anil Khatod, head of Nortel's Global Internet Solutions division. Merely charging customers to connect to the Internet is not generating enough profit margins, Khatod said. The boom in Internet content and proliferation of wireless and fixed ways to access the Internet is also driving Nortel's technology, according to Khatod. The new Nortel technology consists of switches programmed to recognize customers. Switches are devices that filter and forward packets of information in computer networks. The switches use a combination of in-house Nortel technology and technology developed in partnership with Novell Inc., plus R&D acquired when Nortel bought Alteon Websystems. The new group of products, tagged the "personal Internet", are currently being tested by select clients and will introduced to the market over the first half of this year. Tremendous Potential Technology analyst Mark Quigley of The Yankee Group in Canada says the idea of a personal Internet has tremendous potential for Nortel. "Service providers have gone through times where margins are slim and they are looking for ways to increase them and can't raise prices because of competition," Quigley said. "The next step is personalization of content for customers." Copyright © 2001 CanWest Interactive and The Montreal Gazette Group Inc., A division of Southam Publications, a CanWest Company. The contents of this website are protected by copyright. All rights are reserved and commercial use is prohibited. To make use of this material you must first obtain the permission of the owner of the copyright. For further information on reuse of Gazette material in non-electronic form, please contact P. Beaulieu in writing at The Gazette, 250 St. Antoine W., Montreal, Quebec, H2Y 3R7. montrealgazette.com