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Technology Stocks : Nortel Networks (NT) -- Ignore unavailable to you. Want to Upgrade?


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."
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