Nortel Networks received a major financial boost worth an estimated US$1 billion today when Verizon Communications...
January 7, 2004
Nortel Networks received a major financial boost worth an estimated US$1 billion today when Verizon Communications selected the company as its Voice Over Internet Protocol (VoIP) equipment provider.
Verizon will begin deployment of the new Nortel equipment in its local and long-distance voice wireline networks later this year. The company plans to offer one of the industry’s most comprehensive suites of VoIP and multimedia services, providing consumers and businesses in markets throughout the United States with communications capabilities that dramatically increase functionality, mobility and productivity.
Verizon expects that its next-generation network will be the nation’s largest converged network, capable of simultaneously handling voice, data and video transmissions.
The companies have executed an interim Letter of Agreement (LOA) covering the initial terms of the arrangement. The parties expect to replace this LOA with a five-year agreement within the next few months.
“Construction of this next-generation wireline network will drive new revenue growth for us as we expand the services we can offer to customers nationwide, as well as make our existing network more efficient,” said Lawrence Babbio Jr., Verizon vice chairman and telecom president.
The move is as significant as when the industry began moving from analog to digital technology in the 1980s, he said.
Sue Spradley, president, Wireline Networks with Nortel, described it as an aggressive move by Verizon to deliver on the industry’s vision of convergence.
“We are on the edge of a new era in telecommunications – one in which superior delivery of integrated voice, video, and data will enhance how, when and where people communicate with full mobility," she said.