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

To: Paul Lee who wrote (1540)	12/8/1998 5:23:00 PM
From: Kenneth E. Phillipps	Read Replies (1) \| Respond to of 14638

"Cisco is viewed as being a shark and is more than willing to step on some of its resellers toes," Haller says. nwfusion.com New Nortel service to support integrated nets By Jim Duffy Network World, 12/07/98 Santa Clara, Calif. - Nortel Networks has announced a service and support program to help users manage integrated data and telephony networks. The program splits service and support delivery between Nortel and its business partners, such as value-added resellers and other indirect resellers. The program covers switching and routing equipment from Nortel's Enterprise Data Networks division and its Bay Networks line of business. The new program is designed to deliver direct service and support to Nortel's largest enterprise accounts while handing off smaller accounts to business partners. This segmentation is intended to help Nortel and its business partners alleviate service revenue conflict, which was common until now, says Rusty Walther, director of strategy, planning and programs. The new program is also a way for the company to reduce costs by handing off some service and support overhead to business partners, observers note. Components of the program include the Named Account service portfolio and the Business Partner service model. The Named Account portfolio is targeted at Nortel's 300 largest accounts and has an annual service revenue of $200 million, Walther says. The Named Account program offers product life cycle services, from assessment and design through maintenance and optimization. The program includes tiered services based on network size, complexity and service investment. Pricing is determined by product and network complexity, Walther says. "These offerings . . . should actually predict and avoid network downtime," says Dominic DelDuca, senior director of network strategy and deployment for pharmaceuticals supplier Merck & Co. in Whitehouse Station, N.J. Under the Business Partner program, meanwhile, all business partners receive basic "Safety Net" services for their entire installed base. Safety Net services provide nine hour per day, five day per week (9-5) limited phone support, 10-day "return to factory" hardware replacement, and software updates via online systems. Authorized Service Solutions Partners receive a higher level of support, including 9-5 unlimited phone support and next-business-day advance replacement hardware. The highest level of authorization is the Premier Service Partner program, with 24-7 enhanced phone support that includes priority access to senior engineering resources, 24-7 next-day advance replacement hardware and enhanced online access that includes software upgrades, bug reports and more. Analysts say Nortel's new service program could give the company a competitive boost. "If it caters enough to this channel then supposedly it'll gain some kind of competitive advantage," says Jonathan Haller, an analyst at CurrentAnalysis in Sterling, Va. "Cisco is viewed as being a shark and is more than willing to step on some of its resellers toes," Haller says. Nortel will begin moving current service customers and business partners to the program in January 1999. Nortel: (408) 988-2400 Contact