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Nortel signs deal with BT, releases Q1 financial results

Nortel Corp. scored a major win today when BT Group plc announced the company would be its main supplier in the dep...


June 1, 2005  


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Nortel Corp. scored a major win today when BT Group plc announced the company would be its main supplier in the deployment of a new nationwide communications network for the UK Ministry of Defense (MOD) and British Armed Forces.

Using Nortel multiservice switching and voice over IP (VoIP) equipment valued at US$42 million, the new network will be built out over the next two years.

The infrastructure will provide wide area network services in over 2,000 locations, including voice services to over 200,000 subscribers and common Ethernet-based connectivity to 150,000 terminals.

“We are working closely with Nortel to improve the effectiveness of the UK’s defense communications network and the services it provides,” said John Anderson, director, BT Government.

To ensure the smooth migration of current services and applications across the new multiservice network, BT and Nortel have jointly developed a dedicated testing facility for the MOD network.

The lab includes all existing equipment currently deployed in the UK MOD network, along with all new equipment being procured as part of the network rollout.

“The joint BT-Nortel lab will enable new technologies and services to be fully proven prior to delivery to the MOD, ensuring optimum service performance and quality,” Anderson said.

Nortel also got back on track with financial reporting filings today when it issued results for the first quarter of the year.

While the company reported a loss of US$49 million during Q1, revenues of US$2.54 billion represented a slight increase from the US$2.4 billion reported one year earlier.

"I am pleased that we are now current with our financial reporting," said Bill Owens, vice chairman and CEO of Nortel. "This is an important milestone as we move forward with our strategic plan."