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Nortel prepares for its first biweekly session with OSC

Nortel Networks Inc. is scheduled to submit the first in a series of biweekly business updates to the Ontario Secur...


June 1, 2004  


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Nortel Networks Inc. is scheduled to submit the first in a series of biweekly business updates to the Ontario Securities Commission tomorrow, part of the probe into the company’s financial reporting scandal.

In other news, Export Development Canada today announced Nortel would continue have access to a $750 million credit facility that is used to help negotiate contracts with organizations located outside of the country.

According to Ray Le Maistre, international editor of Boardwatch, the Light Reading publication for news and analysis of telecom services, software and strategy, despite the reprieve, it’s not just business as usual.

“The conditions surrounding the financial facility has been tightened, and the EDC will now review Nortel’s use of the fund on a case-by-case basis,” he wrote today. Further information is available at www.lightreading.com.

Meanwhile, Nortel today announced survey results that show businesses are aggressively deploying or planning to deploy converged networks

The survey, conducted by Mindwave Research this spring, featured 430 members of the International Nortel Networks Users Association (INNUA), who will be attending the upcoming Global Connect 2004 conference beginning on Monday.

Results show that more than 27% of respondents have already deployed a converged networking infrastructure and 79% of businesses have converged or plan to converge the disparate elements of their communications networks within five years.

“Converged networks are being implemented at an aggressive pace for businesses of all sizes in all economic sectors,” said Malcolm Collins, president of the company’s enterprise networks division. “Put simply, companies recognize the emerging applications, cost savings and productivity enhancements enabled by a single networking infrastructure and are poised to realize these benefits.”

The top three cited benefits are the ability to deploy integrated applications with greater ease (42%); minimizing costs and complexity associated with moves, adds and changes (35%); and the ability to deploy enhanced voice functions (34%).

The most pressing challenges are that the cost benefits are not perceived as being compelling enough at this time, lack of budget and the requirement of systems to manage and troubleshoot IP voice quality.

For Wireless local area networks (WLAN), only 10% of respondents have rolled out a WLAN infrastructure enterprise-wide; but a substantial 55% have deployed a limited WLAN or plan to within the year.

Increasing employee productivity through mobility was the top reason cited for deploying WLANs and the biggest challenge was weakened security.