By Marguerite Reardon

Telecommunications equipment maker Nortel Networks and wireless chip manufacturer Qualcomm said Friday that they have set a new download speed record using so-called 3.5G wireless technology.

The companies say they have achieved downloads of 7.2mbps (megabits per second) based on the UMTS-HSDPA (Universal Mobile Telephone System-High Speed Downlink Packet Access) standard. The companies plan to show off the high-speed capability during a demonstration at the CTIA Wireless 2006 trade show in Las Vegas next week.

The companies achieved the ultrafast HSDPA data calls using test terminals based on Qualcomm's Mobile Station Modem, MSM6280 and HSDPA network equipment from Nortel.
HSDPA is a new mobile-telephony protocol that is often called 3.5G or 4G Internet, because it increases the download speeds of regular 3G, or third-generation, networks. The technology is designed to boost network capacity for data transmissions up to four times and enables twice as many wireless users per cell site compared with current UMTS (Universal Mobile Telecommunications Service) or 3G networks.

The faster download speeds should come as good news to Cingular Wireless, which announced in December that it planned to set up an HSDPA network in 16 markets. The service, called BroadbandConnect, currently provides average speeds between 400kbps (kilobits per second) and 700kbps.

The technology competes with other next-generation cellular technologies, such as EVDO. Verizon Wireless and Sprint Nextel use EVDO, also known as 1xEV-DO, and also offer wireless broadband service with download speeds between 400kbps and 700kbps.
The Nortel and Qualcomm move improves the performance of HSDPA. That makes the technology competitive with other emerging broadband wireless technologies such as WiMax, which boasts peak data speeds of about 20mbps, with average user data rates between 1mbps and 4mbps.

The New York Times
2006/03/27
Ian Austen

When the technology boom of the 1990s ran its course, the major companies producing telecommunications gear paid the price. But for all the pain of layoffs and retrenchments, they went through remarkably few consolidations and mergers.

Now, just as the companies have again begun to show signs of life, an Alcatel-Lucent merger might vastly alter the industry's dynamics by creating a large new competitor with worldwide reach, the first that would be a leading company on more than one continent.

The deal, if it is concluded, may bring pressure for mergers or takeovers at competitors including Nokia, Siemens Communications of Germany, Ericsson and, above all, the current North American leader, Nortel Networks, which is based in Brampton, Ontario.

"It's going to be tough for them," said Tyler Adam Chamberlin, an assistant professor of management at the University of Ottawa who has looked closely at Nortel.

"This is a company that's already struggling just to get its own internal operations in order. To have an Alcatel-Lucent merger on top of that is quite daunting."

The good news for equipment makers is that their main customers, the telecommunications carriers, are finally buying network equipment again. But the pressure that all the equipment companies face reflects a fundamental change in the technologies the carriers are seeking.
The new spending, partly a product of the carriers' relative financial stability, stems from their desire to find new profit sources in services such as internet-based television, wireless television and internet voice calling.

To that end, many carriers are finally showing interest in a concept long promoted by equipment makers with relatively little success to date. Put simply, it eliminates distinct networks for different services like landline calls and wireless calls. The new systems run all content from voice to video through a single, closed version of the internet. Sophisticated software gives higher priority to delay-sensitive services, like television, while internet access systems sort everything out at the customers' end.

The complexity of such systems makes a case for companies with a breadth of offerings, like a combined Lucent and Alcatel.

"The basic lesson is that scale does have its advantages," said Mark Sue, a New York-based analyst with RBC Capital Markets. "Similar to a lot of other industries, you have to go big or you have to go home."

Few expect any competitors of a combined Lucent and Alcatel to pack up in the near future.
Krish Prabhu, chief executive of Tellabs and former chief operating officer at Alcatel, said it would take four to five years for the merged firn to sort out its technology and take advantage of its increased size.

"The biggest troubles will be in products that have started deployment in the last five years," he said.

One obvious way to bulk up any telecommunications company would be a deal involving Siemens Communications or Nortel, with the ultimate merger, arguably, being one between them.

Given Siemens' strength in Europe and Nortel's significant position in North America, "there's a compelling logic for joining Siemens and Nortel", said Scott Clavenna, the Boston-based chief analyst with telecommunications equipment research firm Heavy Reading.

Certainly both companies are in a state of transition and in Nortel's case, turmoil. Chief among Nortel's problems is a seemingly chronic inability to sort out its finances.

After restating several years of results because of an accounting scandal, Nortel announced this month that it would make its third restatement in three years because of accounting errors. Still looming over the company from the earlier accounting issues are criminal and securities investigations in the United States and Canada.

Last October, Nortel named a former Motorola executive, Mike Zafirovski, as its third chief executive since 2004. Since then, Mr Zafirovski has replaced most of Nortel's top management, largely with executives from General Electric, his employer before Motorola.

Siemens recently shuffled the top management of its communications division, begun a reorganisation of the operation and is believed to be interested in ultimately selling the division.

Not everyone, however, is convinced that a Nortel-Siemens deal is likely or even desirable.

A telecommunications analyst with CIBC World Markets, Steve Kamman, said Nortel could compete effectively without merging.

Published March 27, 2006
St. George (ASX: SGB),

Australia's fifth largest bank and a top 15 Australian Stock Exchange company, has deployed a high- speed Nortel (NYSE/TSX: NT) network to provide more reliable communications between its head office and business continuity sites.

The new network replaces the Bank's legacy data network and was chosen from a list of competing vendors following a comprehensive tender and trial process conducted last year.

"As part of our customer experience development we launched a CRM project in Q4 2005 that required an overhaul of our existing network to function optimally," said John Loebenstein, group executive information technology, St. George. "Not only did we need vastly increased bandwidth to support new CRM and other applications, but - given the type of traffic we were going to run over the network, including voice and video - we needed sub-second failover recovery to minimise any effect on customers in the event of a system failure."

"New applications like video conferencing and VoIP put a much greater emphasis on the reliability and resiliency of the network infrastructure because of the added stresses they put on available bandwidth," said Paul Bristow, St. George's executive manager, IT network services. "In Nortel, we found a solution that gives us the high levels of performance we need to maintain a consistent top level of customer service. Nortel's technology is based on open standards, which allow us to continue building leading networks while retaining the freedom of choice in vendors."

Optus, Australia's second-largest telecommunications carrier, and Nortel nPower channel partner implemented the network. Optus has been a long-term network services provider for St. George Bank, which includes managed services for the Bank's DWDM core optical network.
Nortel's solution for St. George comprises a 10 Gigabit Optical Metro 5200 fibre-optic platform connecting St. George's main production and business continuity sites in Sydney. A pair of Nortel Ethernet Routing Switch 8600s is deployed at each site, providing sub-second failover through split multi-level trunking (SMLT) technology. Further 8600s are also used to connect the Bank's 400-plus servers across more than 300 branches nationwide. Optus implemented the network in its capacity as a Nortel channel partner, and also runs the optical core network as a managed service for the Bank. The new network was built in less than eight weeks, including the time taken to decommission and dismantle the legacy network. In its first four months of operation, the network exceeded its five-nine uptime target, with simulations confirming actual throughput speeds nearing the network's 10 Gigabit rating.

Mark Stevens, president, Australia and New Zealand, Nortel, said: "Converging technologies onto a single network infrastructure puts the onus on the reliability of the network to maintain data integrity and optimally balance available bandwidth. We work closely with our technology and implementation partners to build resilient converged networks on the foundation of a strong data network infrastructure designed to deliver the benefits of convergence without impacting the end-user experience."

The Associated Press/NEW YORK
MAR. 24 10:22 A.M. ET

Communications equipment makers Nortel Networks Corp. and Sierra Wireless Inc. said on Friday they made the first over-the-air test calls using a next-generation wireless technology called EV-DO (Evolution-Data Optimized).

The technology, which is being pushed out in the U.S. by Sprint Nextel Corp. and Verizon Communications Inc., is expected to deliver higher-speed wireless service which will allow for push-to-talk, push-to-video, voice-over-Internet-protocol, and interactive gaming wireless functions.

Shares of Nortel, which have traded between $2.26 and $3.60 over the last year, were up 14 cents, or 5 percent, at $2.95 in morning trading on the New York Stock Exchange. Shares of Sierra rose 3 cents to $11.08 on the Nasdaq

March 23, 2006

For millions of investors, lenders and customers, the name Nortel is synonymous with failure, not innovation

STEVE MAICH

In business, as in life, it's best to avoid overt signs of desperation if at all possible. Everybody knows never to let 'em see you sweat, but there is a key exception to this rule that is rarely discussed and often overlooked, generally with dire consequences. Acting desperate is excusable, even advisable, when you actually are desperate, and everybody knows it.
In those cases, who really cares how you look? The thing that matters is survival. There are no points for style in survival situations. When a freighter goes sailing by your leaky lifeboat, playing it cool can be fatal.

Which brings us to Nortel Networks Corp., and the many reasons why it is now time to relegate the company's name, logo and branding to the history books, and begin again. Go back to Northern Telecom if you like. Heck, call the company Acme Corp. for all it matters. The point is, CEO Mike Zafirovski was brought in last year to be an agent of change at a company adrift. They paid US$11.5 million to Motorola to get him. He has a new board, a new CFO and an extremely ambitious plan. To make it happen, he needs to make a dramatic break from the past -- the sooner the better. But that's proving difficult.

Two weeks ago, Nortel revealed that it will be restating its financials for the third time in less than three years, due to yet another accounting error. Unlike its last restatement, this one likely won't trigger subpoenas from the cops, so that's at least one positive. But still, the psychological impact of yet another misstep is huge. To the millions of skeptics out there, it was a reminder that this is the same old Nortel, up to the same old pratfalls that ceased to be funny a long time ago.

Would a new name really substantively change anything within the company? Not really. Would critics deride it as meaningless and superficial? Probably. But whether we like it or not, the world of business is driven by human beings, who respond to symbolism. For millions of investors, lenders and potential customers, the name Nortel is synonymous with failure, not cutting-edge technology. Zafirovski has embarked on the biggest challenge of his professional life, and at the top of every letterhead is a bit of dead weight he can ill afford. In this game, little details mean a lot.

Consider the mountains in his path.

The latest accounting problem, and the fact that Nortel will have to delay filing its annual report to regulators, has several implications, none of them good. As of now, Nortel is technically in default of its US$1.3- billion credit facility. Lenders could, if they choose, demand accelerated repayment or claim company assets as collateral. Export Development Canada, which has given US$750 million in support, could cut off further funding or terminate existing commitments. The New York Stock Exchange could boot the company's shares off the Big Board.

Any of the above could be a death blow for Nortel at this point. The good news is, none of these things are very likely to happen. Lenders have been down this road before with Nortel, and it really isn't in their interest to drown the company. They're much more likely to issue waivers and let Nortel get back on its feet. Still, the risks are real, and they are only part of a much larger challenge.

Last month, Zafirovski laid out a plan for Nortel's future, indicating that he wanted to focus efforts on businesses in which Nortel could be an industry leader, with at least a 20 per cent share of the market. According to Merrill Lynch analyst Vivek Arya, just four of Nortel's 14 primary business groups currently meet the boss's 20 per cent threshold. Last month, Tom Astle, an analyst with National Bank Financial, looked at nine business lines where Nortel is a laggard, and concluded the company had the potential to become a major player in only three or four of them. He suggests Nortel should probably be selling or shutting down the rest.

Zafirovski has also indicated he wants to improve Nortel's operating profit margin enough to wring an additional US$1.5 billion in profit by 2008. Analysts estimate this means an operating profit margin of close to 15 per cent. To put that in perspective, Nortel's operating profit margin in the last quarter of 2005 was 6.4 per cent. Nortel's main competitors, Lucent Technologies and Alcatel, both have operating margins of around eight to 10 per cent. In short, Zafirovski has set for himself a monumental hurdle. What's more, analysts say current forecasts for the company do not include the $2.7-billion settlement offered recently to shareholders to resolve allegations of executive malfeasance under the previous regime. That could carve about three cents a share from profits this year and next.

The whole strategy hinges on the CEO's ability to cut costs and jettison weak business units without reducing profits. It's tantamount to trying to get a canoe to move faster by throwing paddlers overboard. Not impossible, but tricky, to say the least. As Merrill Lynch's Arya said in a report to clients last week, "if the new CEO can cut costs aggressively, enter new growth areas through mergers and acquisitions, or win a marquee contract, investor attention could rekindle." And if he could pull a rabbit or two out of his hat while he's at it, then we'd really be impressed.
Yes, a name change is a desperate move, but it has worked in the past. WorldCom broke ties with its scandalous past by reverting back to the name MCI. Tobacco giant Philip Morris put a happier face on its business by adopting the name Altria. Suzy Shier changed its name to La Senza when its focus shifted to lingerie.

It's not a panacea. It won't get the profit margins up. But it'll send a message that the past is the past. And if Zafirovski plays his cards just perfectly, he can dream of a day when people forget about Nortel, for all the right reasons.M

To contact the writer, email steve.maich@macleans.rogers.com
To comment, email letters@macleans.ca

By: Mark ElsNetwork World Canada (17 Mar 2006)

Security for the enterprise comes in all shapes and sizes. Its moving parts are coordinated by a mechanism known as network access control, facilitating dialogue between network-based security devices and client anti-virus software.

Appliances from Cisco, Juniper and Nortel communicate with McAfee, Symantec and CA, for example, to check whether distributed desktops, laptops and mobile devices that connect to the network are compliant with corporate security regulations.

Nortel Networks Corp. last month announced a switch aimed at extending its Secure Network Access from remote virtual private network connections to the LAN. The Secure Network Access Switch targets the endpoint as an added layer that brings client security in line with existing network protection policies.

Nortel’s new switch is both a credible and more heterogeneous alternative to Cisco’s Network Admission Control, according to Robert Whiteley, an analyst with Forrester Research Inc.

“Nortel provides all the same parts that Cisco can,” he says. “And Nortel tends to be more standards-based in its approaches, so when you plan to tie in multiple vendors, Nortel makes a friendlier foundation.”

The Toronto-based company is partnering with Juniper, Symantec, McAfee, IBM and Check Point to push interoperability standards with Trusted Network Connect, a task force of more than 70 vendors, including Microsoft, but not Cisco, within Trusted Computing Group.

The latest boxes are brimming with intelligence that’s engineered to keep security self-sufficient and simple. But managing the many layers between the network and its applications can be unwieldy, complex and costly.

While endpoint security may be technically feasible, Whiteley says it’s not economically viable. Vendors must scale the walls of interoperability for the technology to become cost-effective.
“We’re talking about integrating several back-end technologies to make endpoint security work,” says Whiteley. “The operational costs quickly escalate to the point where it’s not economically feasible.”

While endpoint security ties network protection and client security together, the appliance must also tap into the back-end to collect user information in Microsoft Active Directory, says Whiteley, as well as configuration or patch management software from vendors such as Altiris, Shavlik, PatchLink and BigFix.

“For this stuff to work together in multi-vendor environments, we need to get aggressive, we need to get behind [Trusted Network Connect standards], and we need to get visible,” says Peter Cellarius, Nortel’s head of enterprise security, wireless and routing.

Independently, Cisco and Nortel are also working to integrate their products with Microsoft’s Network Access Protection (NAP), server-based endpoint security software that will ship with Vista next year.

Cellarius says Nortel’s Network-Assured NAP hopes to integrate NAP inspection into the endpoint compliance methods of the Secure Network Access Switch. Similarly, if NAP discovers the Nortel switch, it can use Nortel’s port-based mechanism to enforce access rules.

Philadelphia-based law firm Duane Morris LLP has an array of security products that watches over its distributed information systems. CIO John Sroka supports 1,500 users across 20 offices, including 625 lawyers who often work on the fly. He admits it’s a complex environment to manage.

The company — which makes use of both a systems integrator and a managed security services provider — operates off a Nortel-based infrastructure, with McAfee virus scanning on the network, intrusion detection systems from Cisco (data) and Nortel (voice), and dual firewalls from Check Point. A man­aged security services provider takes care of the firewalls and monitors the network for intrusion detection.

At the client level, Sroka runs Microsoft’s firewall capabilities in Windows XP SP2. He also relies on Microsoft’s SUS (Software Update Services) for patch management and has implemented Symantec virus scanning for the desktop, ControlGuard Endpoint Access Manager, which locks down and controls USB ports and CD-ROM drives, as well as Postini and WebSense for e-mail filtering and Web blocking.

“We have a pretty locked down and standardized environment as far as our desktops are concerned,” says Sroka. “A lot of the security products are really independent, but they complement each other to work as a comprehensive solution. For example, if we look at virus scanning, it’s deliberate that we have one vendor on the desktop and a different vendor on the network.”

With its employees becoming more mobile, Duane Morris needs to be more flexible in the services it provides, says Sroka. “We want people to be able to bring their laptops into the office without compromising the network.”

To this end, Sroka has installed Nortel’s Secure Network Access Switch and is currently in an evaluation process. “One of the reasons we actually went to Nortel for endpoint security is they take that security to a switch-port level,” says Sroka, who is looking for as much integration as he can get with his current infrastructure.

“Our biggest concern right now is the laptops because they would be network-attached,” he says, adding that voice over IP is making the network that much more critical. Duane Morris is in the midst of what Sroka calls an aggressive rollout of VoIP. “Endpoints are of that much more concern,” he says.

By Preston Gralla
March 23, 2006
Networking Pipeline

Conventional wisdom says that with converged networks spanning branch offices or divisional headquarters, enterprises are signing up for broadband fiber optic access in droves.

But the conventional wisdom is thoroughly wrong, according to a new survey from the research firm Vertical Systems Group. The group found that only 11.7 percent of medium-to-large U.S. business sites (those with 20 or more employees) are connected to a service provider's network via optical fiber.

And that access is growing at a snail's pace. Erin Dunne, director of Research Services for the Vertical Systems Group, says that 10.2 percent of medium-to-large U.S. businesses were connected by fiber two years ago, which translates into growth of only 15% over two years.
If broadband has become a must-have for enterprises, especially those building converged networks, why isn't fiber access growing more quickly?

What's Holding Back Fiber
According to Dunne, four things are holding back fiber access: economics, local politics, the growth of alternatives to fiber, and business inertia.

She says that it can cost $250,000 to run fiber to an existing building, and many building owners simply aren't willing to pay the costs. New buildings, especially in booming locations across the Sun Belt, include fiber access, because it's relatively inexpensive to provide it in new construction. But for existing offices, the $250,000 is often more than owners are willing to pay.

Politics, especially in older, congested cities in U.S. Northeast, plays a role as well, she says. Running fiber to a building in a city requires that the fiber be buried in trenches --- and that means digging up city streets, often causing serious traffic delays and disruption. Because of that, many cities make it difficult to get permits to do the required work, she says.

"With all the digging and problems they've had in Boston over the last several years because of the Big Dig (a multi-billion-dollar public works project), do you really think the politicians want to have the streets dug up again?" she asks rhetorically. New technologies are giving businesses less-expensive alternatives to fiber. Low-cost wireless mesh networks are being built in cities across the country, such as Philadelphia, for example. Big service providers are also looking at providing broadband wireless access via Wi-Max. BellSouth recently announced it will be testing a large-scale Wi-Max rollout.

Finally, business inertia plays a role as well, she says. Most companies already have T-1 lines running over TDM offering 1.5-megabit access. For their current uses, she says, that bandwidth is adequate, and so many companies simply don't want to have to deal with the cost and headaches associated with running fiber.

What The Future Holds
But the lack of fiber access may come back to haunt companies in the future, and may be harming the networking industry as well. Emerging network services such as IP VPNs, VoIP and IP video require connectivity at up to gigabit speeds, and purchasing decisions for these services are being put off because so few enterprises have fiber connections. Faster fiber deployment, and new developments in Ethernet over copper, will be required to overcome the obstacles to growth.

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Market New Router Portfolio Extends Network Capabilities to Branch Offices

TORONTO, March 20 /CNW/ - Nortel(*) (NYSE/TSX: NT) has strengthened itsend-to-end converged networks portfolio with the general availability of theNortel Secure Router portfolio, extending the power of convergence from mainoffice locations to branch offices. The new products enhance Nortel'scommitment to provide seamless, feature-rich enterprise networks that supportcritical real-time applications including data, voice, video and streamingmedia applications.

The Nortel Secure Router 1000 portfolio is comprised of the 1001, 1002and 1004 for small office and branch office deployments. It also includes theSecure Router 3120 for mid-range branch deployments. In addition to ease ofimplementation and interoperability, Nortel Secure Routers deliver more thandouble the performance throughput at 25% less cost than equivalent router fromthe leading competitor.

"This product line brings feature-rich services and security for ourcustomers, and delivers the power of the headquarters environment in a branchoffice," said Aziz Khadbai, general manager, Converged Data Networks. "Theserouters offer IP capabilities beyond layer 3 routing, including the provisionof firewalls, VPN and Quality of Service capabilities designed to support IPtelephony and other latency-sensitive applications."

"We've been using the Nortel Secure Router 1004 in a branch locationalong with the Business Communication Manager," said Lisa J. Harris seniorvice president and chief information officer, Gevity. Gevity, headquartered inBradenton, Florida with branch locations throughout the United States,provides comprehensive insourced employment management solutions for small andmedium-sized businesses. "The installation and implementation was easy andinteroperability has been seamless. Nortel's solution provides a completepackage of price, performance, reduced administrative costs, and world-classsupport, providing Gevity with a competitive advantage."

Nortel Secure Routers are being made available direct through Nortel andthrough Nortel's extensive partner distribution channel. Several have beentesting the routers in preparation for the launch.

"We have a large customer base searching for integrated branch officenetwork solutions," said Stuart Chandler, president and CEO, OptivorTechnologies. "Nortel Secure Routers combined with Nortel's extensiveenterprise portfolio clearly provide that solution. Optivor has been bundlingthe secure routers with the Business Communication Manager, Power overEthernet routing switches, WLAN access points, and IP Phones for a complete,secure end-to-end converged solution. Integrating the secure router was quickand seamless. Now our customers have a clear choice when selecting oneprovider for voice and data networking."

"The need for consolidated branch-office devices is compelling. Theaverage branch has six networking devices, with the number of locationsincreasing by 6.5 percent a year. That adds up to more devices and more timemanaging them," said Robin Gareiss, executive vice president and seniorfounding partner, Nemertes. "IT staffs want products that combine routing,optimization, and security, making it easier to manage an end-to-end convergedinfrastructure."

Nortel purchased Tasman Networks for $99.5 million to provide acomprehensive end-to-end convergence solution and to round out the company'ssecure router portfolio for branch office environments. The deal closedFebruary 24, 2006.

Canadian Press
Tuesday, March 21, 2006

TORONTO (CP) - Nortel Networks Corp. (TSX:NT) is uniting its data network units serving telecommunications carriers and corporate users.

The change comes as voice and data networks converge into a single multi-service Internet-protocol network and the lines blur between telecom and enterprise customers.
Combining the carrier data and enterprise data teams will "strengthen its end-to-end convergence solutions and increase R&D effectiveness," Nortel said Monday.
Aziz Khadbai, a 16-year Nortel veteran, has been named general manager of the new organization, to be known as converged data networks.

Khadbai, formerly general manager of local premise solutions and network management, reports to Steve Slattery, president of enterprise solutions and packet networks.

The move "furthers our ability to provide feature-rich converged networks that support critical real-time applications including voice, video and multimedia applications," Slattery stated.

PBXInfo.com, a free IT community for telecom professionals, is introducing a new GUI-based pbx solution designed to help businesses increase productivity by more efficiently administering their Nortel phone systems.

Rowlett, TX, March 20, 2006 --(PR.COM)-- MerAssistant 2.0 is a powerful new GUI program for your Nortel phone system. It allows administrators to perform many of the daily tasks of programming with simple drop down menus and point and click access rather then a command line interface. MerAssistant 2.0 is so user friendly that it can even let non-technical users be able to make safe system changes with ease.

“I've never even logged into a switch before - but with this program, I feel comfortable interacting with our switch. I use it on a daily basis and it works like a charm." - J. Jackson, Pbx Supervisor.

MerAssistant 2.0 boasts task automation, over 100 pre-defined reports, over 50 pre-defined programming commands, global set changes, dial up capability and much more. MerAssistant 2.0 was designed to save Nortel administrators time and frustration when performing many of the complex programming tasks needed to maintain a Pbx system.

Many Nortel administrators are finding MerAssistant 2.0 an invaluable tool, "Straight forward and easy to use. I've changed names of directory numbers, class of service of telephone sets and enabled sets that were unplugged. All actions that I would normally have to wait for the technician to arrive to complete. MerAssistant is a nice program to have." - R. Kessell, Pbx Department Manager.

MerAssistant is perfect for onsite or traveling technicians as well because it allows global and on the fly changes. It also supports direct connect or dial up access to the Pbx. MerAssistant 2.0 gives you the power to perform moves, adds or changes easily, effectively and efficiently.

Contact Information PBXInfo LLCRick Cruz972-322-6728rick@pbxinfo.comhttp://www.pbxinfo.comCharles Cartercharlescarter@pbxinfo.com

Companies Address Telecom Needs of Small Businesses with One-Stop-Shop Service for Hosted VoIP Solution

March 15th, 2006

CompUSA today announced its partnership with Bandwidth.com and Sylantro Systems to offer the first full-featured hosted VoIP service for small and medium-sized businesses in the retail industry. Businesses in need of 10 to 200 lines across a single or multiple locations can now purchase a comprehensive VoIP service solution at CompUSA.

Designed to deliver the highest levels of call clarity and reliability, as well as the most advanced features available for SMB's today, the service features Bandwidth.com's premier VoIP offering, incorporating Sylantro's Synergy VoIP platform. The combined product and service offering will be available beginning in April at CompUSA's more than 240 stores, and supported by CompUSA Techknowledgists with more than 20,000 service professionals nationwide.

"With this partnership, we're offering small and mid-size business owners a solution never available to them before: the ability to select and purchase a comprehensive VoIP system from a trusted national retailer, knowledgeable about their needs and ready to provide the services to get it done right," said Brian Woods, executive vice president of merchandising for CompUSA. "We're excited to offer this new service and product, and also to partner with two world-class organizations like Sylantro and Bandwidth.com. Combined with CompUSA's national presence and Techknowledgist services, we're confident we have every angle covered.

"The Bandwidth.com service includes support for four-digit dialing across multiple locations, automated attendant and fully featured voicemail software, Microsoft Office integration, browser-based system administration and many more business applications. Sylantro's Synergy platform also supports a full portfolio of business IP phones from a variety of leading phone vendors including Vodavi, Mitel, Thomson and Grandstream.

"Partnering with CompUSA to deliver Bandwidth’s hosted VoIP solution is a tremendous accomplishment for our company," said Henry Kaestner, CEO of Bandwidth.com. "We set out to find a top retail partner that not only understands the benefits of offering VoIP to the SMB community but also has the technical knowledge and expertise to market such a service."

"We're pleased to work with CompUSA and Bandwidth.com to provide a full featured hosted VoIP solution for the SMB market. Combining Bandwidth.com's advanced business class VoIP services with CompUSA's excellent retail distribution for the nationwide launch represents a significant industry milestone. This is an indicator of how hosted VoIP services have become mainstream," said Pete Bonee, chairman of Sylantro Systems.

This is an intresting device for today's increasingly security conscious open cubicle environments.

Cubicles rarely afford discretion, but the Babble can help. The $400 device from Sonare Technologies plugs into phones (only those with modular cables) and disguises conversations by scrambling words and projecting them from a pair of speakers. What's heard isn't white noise but a muffled string of unrecognizable speech. Ideal for cubicle dwellers with nosy neighbors.

http://www.sonaretechnologies.com

[March 15, 2006]

SAN JOSE, Calif., VON Conference and Expo, March 15 /PRNewswire-FirstCall/ -- Polycom, Inc. , the world's leading provider of unified collaborative communications solutions, today announced that it has completed interoperability testing with the Nortel Multimedia Communication Server (MCS) 5100 (release 3.5) and 5200 (release 3.0) and received certificates of compatibility for its standards-based SoundPoint(R) IP desktop phones and the SoundStation(R) IP 4000 conference phone. The successful completion of the compatibility test audit demonstrates interoperability between Polycom VoIP phones and Nortel MCS platforms.


Polycom will demonstrate its full line of IP desktop and conference phones at the VON Conference and Expo (Polycom Booth #317), taking place March 15-17, 2006 at the San Jose McEnery Convention Center in San Jose, Calif.

"We are pleased to expand our longstanding relationship with Nortel to add certified interoperability between our high-quality, standards-based VoIP desktop and conference phones and the Nortel Multimedia Communications Server," said Sunil Bhalla, senior vice president and general manager of voice communications at Polycom. "This certification demonstrates support for important telephony features of MCS on the Polycom phones and simple deployment and effective management within a Nortel MCS environment. This interoperability gives customers choice of additional phones that feature Polycom's renowned voice quality and programmable hard and soft keys that provide an intuitive user experience and an easy transition to VoIP."
"Combining the conference capabilities and wide reach of Polycom in enterprise environments with our advanced MCS platform provides choices for customers that want collaborative capabilities that allow their employees to share information in a meaningful fashion. We are pleased to simplify doing business with Nortel by offering increased confidence to our customers who choose jointly tested Nortel Compatible Products to deploy alongside their Nortel MCS solution," said Alex Pierson, vice president and general manager, Enterprise and SMB Communication Systems, Nortel. "Nortel is committed to offering open, standards-based interfaces, including a strong focus on SIP, enabling customer choice and flexibility when implementing VoIP."

The scope of compatibility testing included important features such as conference, transfer, call redirect/forward, caller ID, message waiting indication, codec negotiation, DTMF, firewall traversal, and hold/retrieve.

About Polycom VoIP Phones
Polycom's line of SoundPoint and SoundStation SIP phones offer standards- based flexibility with renowned Polycom voice quality and clarity. The phones are upgradeable via the network and offer rich feature support through a combination of intuitive hard and soft keys with a large graphical display, making it easy for users to transition to a VoIP environment. Several Polycom SIP desktop phones are available, including the SoundPoint IP 301, the SoundPoint IP 501 and the SoundPoint IP 601, which received a coveted Editor's Choice Award from Network Computing Magazine in a head-to-head test against other SIP desktop phones. Also available, the SoundPoint IP Attendant Console Solution consists of the SoundPoint IP 601 and up to three SoundPoint IP Expansion Modules for assistants who manage and monitor multiple simultaneous calls. The Polycom SoundStation IP 4000 is a full-featured SIP conference phone delivering Polycom's renowned Acoustic Clarity Technology for clear, natural, two-way communication.

Looking to build the fastest, most efficient, most reliable network? Follow these tips from the pros and you'll be well on your way.

By Matthew Friedman, Networking Pipeline
March 2, 2006

What organizations would want their networks to be, if only they had all the money, time and expertise in the world, is hardly a mystery. Indeed, in a way, the ultimate network is really about nothing more than the Olympics' motto "citius, altius, fortius" rephrased as "faster, more efficient, more reliable." Just how you go about building this network, however, is another thing entirely.

"It exists in utopia," says Info-Tech Research analyst Carmi Levy. "In reality, there's no such things as the 'ultimate' anything. The only way to achieve it is in the lab, and even then, that's probably not even realistic."

Although the ultimate network exists only in theory, what is realistic is to make it a target, Levy says. The best thing any organization can do is to take a tip from Friedrich Nietzsche's superman, whose "reach forever exceeds his grasp."

That's good advice, perhaps, but it begs the question of how you actually go about planning for the ultimate network, even if it's a goal you can approach without ever actually achieving it. Is it a question of spending bundles of money -- just like in the days before the dot-com bubble burst -- on the hottest equipment, infrastructure and software?

Well, top-end technology never works but Levy says that focusing on technology obscures the real paths to the ultimate network. "It really isn't a technology issue," he says. "These things never are. We're always throwing things onto the network without thinking about how they affect the network."

The key is to make sure that the architecture and the network roadmap are planned from the ground up. "Instead of a hodge-podge of processes, things have to be there for a reason," Levy says. "If they aren't, then they have no business being connected to everything else. You don't build a building without blueprints, and you shouldn't build a network without a roadmap." The problem, of course, is that organizations seeking the ultimate network are probably already dependent on a network that is decidedly un-ultimate. Building the best is a whole lot easier when you start from scratch, and it's easier to build a house from blueprints when there is nothing already there, but only start-ups have the benefit of a technology greenfield. On the other hand, Levy says, you can only pin your problems on legacy technology for so long.

"At some point, you have to stop blaming legacy technology," he says. "You have to integrate the good and the bad in you plans and move forward. No one can divine the future, but you can prepare for it by planning from where you are and building with open standards. If you have a clean, modular network, even if it's old, you can upgrade."

Standards, in fact, are a key component of any network that claims the title "ultimate." With the growth in server virtualization and storage networking, for example, many organizations have found themselves running up against compatibility and performance issues that can bring core processes to their knees. EMC director of technology and analysis Ken Steinhardt says "The new thing, and 'first to market' aren't necessarily good things if the standards aren't finalized. Standards that provide interoperability are key."

With that all in mind, the first step is to assess what you've got in terms of hardware, cabling -- even the physical plant where your network assets are installed. "If nothing else, you should do an inventory," Levy says. "Then you can identify your points of pain -- where are you constrained, performance-wise, and how can you change that?"

Ultimately, the quest for the ultimate network should lead up to a short list of business impacts fro insufficiently or inefficiently deployed technologies and processes. Make no mistake, a bigger network pipe and faster hardware could well be in your future but, Steinhardt says, "the key is to have the full chain; you're never going to be better than the weakest link in the chain."

Indeed, the mistake that most organizations make, according to Levy, is that they go shopping too soon. "All the technology in the world isn't going to help you -- and it'll probably hurt you by wasting money -- if you don't know what you need and how you're going to deploy it," Levy says. "Again with the architectural metaphor, you don't build your house if you don't know what kind of land you're on. You need to know your topology and re-arrange it if necessary; if you need to segment then segment properly."

Building the ultimate network, then, is about planning the ultimate network. It is, above all, about doing your homework, knowing what you have, what you need, and what you can afford to spend. "Then you go shopping," Levy says. "Bring in the vendors that you need to get things done, and show them the plan."

The finalized agreement will create a 135-square-mile hotspot covering the entire city supplied largely by 700 discounted T-1 links.

Mar 2, 2006 10:59 AM
By W. David Gardner

Cable and DSL broadband providers in Philadelphia are breathing easier Thursday after the city announced its final Wi-Fi contract with EarthLink that seeks to keep retail prices under $20 a month for individual customers. Verizon Communications, which had resisted the citywide wireless broadband deployment, currently offers DSL at $14.95 a month, for instance.

The agreement will create a huge 135-square-mile hotspot covering the entire city supplied largely by 700 discounted T-1 links.

"We must prepare our citizens and businesses to face the challenges of the 21st Century," said Mayor John F. Street in an announcement Wednesday. "Just as roads and transportation were keys to our past, wireless technology and digital infrastructure are keys to our future."

The deal appears to be win-win for all concerned. EarthLink, which is building the Wi-Fi infrastructure, said it will make a profit from the project. The city will get 22 free neighborhood hotspots, low-income users will be able to use broadband Wi-Fi for $9.95 a month, and some monies derived from the project will be used to fund educational and social programs.

The Wi-Fi speed is planned to be at least 1 Mbps -- fast, but not so fast as to impact cable and DSL broadband offered by private providers. The Mayor's Office anticipates most retail connections can be offered at less than $20 a month.

Donald Berryman, executive vice president of EarthLink and vice president of the firm's municipal networks unit, said he expects 50,000 to 80,000 subscribers to sign up for the project in its early stages. The deployment is scheduled for completion early in 2007.

BLACKBERRY WLAN SOLUTION ENHANCES PRODUCTIVITY FOR ON-CAMPUS MOBILE WORKERS THROUGH WIRELESS DATA ACCESS AND WIRELESS VOIP
March 7, 2006

Organizations looking to enable greater mobile productivity for the estimated 50 million on-campus mobile workers in the U.S. can now do so through their existing WLAN (wireless LAN) deployments using the BlackBerry WLAN solution. Research In Motion (RIM) (Nasdaq: RIMM; TSX: RIM) is showcasing the BlackBerry WLAN solution, including the 802.11-enabled BlackBerry 7270 handheld, at VoiceCon this week.

The BlackBerry 7270 wireless handheld connects through BlackBerry Enterprise Server to provide support for secure, push-based email, instant messaging (IM), organizer, Internet and intranet applications and to make and receive wireless VoIP (voice over Internet Protocol) calls through enterprise telephone systems (ie. IP-PBXs) via the industry-standard SIP (session initiation protocol).

Extending desktop productivity to mobile professionals is one of the central value propositions that made BlackBerry successful in the enterprise and similar productivity benefits can be provided to on-campus workers who spend significant time away from a desk. The BlackBerry WLAN solution lets organizations drive productivity benefits to a growing number of on-campus mobile workers by leveraging their existing investments in WLAN and IP-PBX infrastructure,said Mike Lazaridis, President and Co-CEO at Research In Motion. "BlackBerry WLAN addresses a new market segment within areas such as healthcare, manufacturing, hospitality, education, retail and distribution where campus-wide access to voice and data is beneficial."

In addition to providing secure, push-based integration with Microsoft Exchange, IBM Lotus Domino and Novell GroupWise and support for VoIP telephony through SIP, BlackBerry Enterprise Server is a robust wireless application platform that has been embraced by Independent Software Vendors (ISVs) and developers. Hundreds of line-of-business applications have already been developed for BlackBerry. Examples of applications for the BlackBerry WLAN solution that can enhance productivity and customer service include:

Healthcare: Timely and convenient access to patient and drug information can reduce the risk of misdiagnosis or the improper prescription of medications that may conflict with each other.

Manufacturing: Inventory systems can automatically update new levels and push information to various stakeholders in the production process. Wireless VoIP can improve workflow for individuals and workgroups.

Hospitality: Guest information can be accessed at a glance by service and facilities staff; up-to-date information and alerts can be pushed to security personnel; wireless VoIP can enable faster collaboration and problem resolution.

Contact Center: Time-sensitive information can be pushed to mobile supervisors in place of reader boards that are often out of view, allowing faster action on alerts.

Mobile IT Staff: Phone calls can be handled on the go and helpdesk tickets can be received, updated and closed on the handheld device without running back to a desk.

Retail: Managers can access schedules and reports and front line staff can quickly access information for customers.

The BlackBerry 7270 handheld conforms to the 802.11b WLAN standard and provides VoIP capabilities through the SIP standard. In order to enable seamless integration with WLAN and IP-PBX systems, RIM has worked with industry standard protocols and leading WLAN and IP-PBX vendors to allow product interoperability and certification. The BlackBerry 7270 also supports most WLAN authentication and encryption standards and includes client software for many leading enterprise VPN gateways. Device provisioning of the BlackBerry 7270 is provided through the BlackBerry Enterprise Server in the same manner as cellular based BlackBerry devices, with added IT policy controls for setting specific smart dialing, VoIP, VPN and WLAN rules.

March 08, 200
By W. David Gardner Courtesy of TechWeb News

The goal of 100 Gigabits per second is within reach but not ready for commercial deployment, according to Lucent Technologies' Bell Labs, which reported Wednesday that it has successfully tested the super high speed data transmission.

Bell Labs scientists, in a paper presented to the Optical Fiber Communication Conference & Exposition, reported what they said was the first notice of optical transport of electronically multiplexed 107Gbps.

"We feel 100 Gigabit Ethernet is a particularly important technology as carriers look to deploy multimedia IP services, such as IPTV, which requires networks that efficiently multiplex and transmit high amounts of IP-based data in its native Ethernet format," Martin Zirngibl, Bell Labs director, said in a statement.

Today, data transmitted over the Internet often achieves speed of 10Gbps, although it occasionally can reach 40Gbps over SONET links. The Bell Labs technology reached speeds of 107 Gbps (7 percent of the throughput is represented as overhead for error correction.)

Bell Labs said its researchers transmitted 10 channels of 107-Gbps traffic optically modulated through electrical multiplexing. The transmission covered 400 kilometers. An integrated optical equalizer, functioning as a single-chip photonic integrated circuit, played an important role in the deployment.

March 13, 2006

By Matthew Friedman Networking Pipeline

Despite a small drop in the at the end of last year, revenues from worldwide sales of local area network (WLAN) equipment showed healthy growth in 2005, according to a new report from Infonetics Research.

Revenues were up 10% overall in 2005, though there was a 5% quarterly dip in the fourth quarter. Unit shipments were up 39% in the same period, to top 25 million. WLAN switch and controller revenues grew 93% and shipments jumped 154%, Though WLAN switch and controller sales currently account for 19% of revenues, compared to 81% for access points, the report notes that that proportion will rise to 44% by 2009.

Infonetics expects the growth trend to continue, with WLAN equipment revenues reaching $3.8 billion by 2009. Much of the growth will be driven by the enterprise market, which the firm says will expand 120% between 2005 and 2009.

"The enterprise segment is where the action is," Infonetics Research analyst Richard Webb said in a statement. "Organizations of all sizes are increasingly mobile and data-reliant, so the need for network access while on the move is crucial, driving growth of WLAN switches and controllers in particular, which achieve double-digit annual revenue growth through 2009."

Cisco was the overall WLAN equipment revenue leader last year, followed by Symbol and 3Com. The company also held a comfortable lead in WLAN switch and controller revenues, also ahead of Symbol.

Avaya's new peer-to-peer SIP solution, dubbed one-X Quick Edition, certainly grabbed headlines this week, but users could end up drilling their own teeth if they're not careful. Quick Edition's predictability and availability could suffer because of its unique P2P networking.

One-X Quick Edition was part of Avaya's telecom blitzkrieg announced this week at the VoiceCon show. The technology provides Avaya with a valuable opportunity to expand beyond its enterprise base and address the burgeoning small-business market, the weakest of Avaya's three major technology sectors. The VoiceCon blitz saw Avaya fill critical holes in Communication Manager with version 3.1, while also setting the groundwork for a new approach to application integration, not to mention meeting the needs of the small office.

Communication Manager 3.1 improves Avaya's telephony server resiliency on two fronts. Avaya eliminated the need for a fiber link between two servers in a redundant configuration, relying on Ethernet instead. This move reduces hardware configuration costs and expands architecture choice. Instead of locating both servers within the same premises, the Communication Manager server can now be located on separate sites for higher availability. Cisco has long offered such a capability.

Avaya has also improved Communication Manager's ability to fail over active calls to a backup server by duplicating the IP Media Resource boards in each server. Security has also been improved through the support for Tripwire for Enterprise Linux 4.0, which will now be shipped with all Linux-based Avaya Media Servers.

Vendors are looking to embed VoIP within their enterprise applications to help change the way businesses use communications, and Avaya is no different. To those ends, Avaya upgraded its Avaya SIP Enablement Services, which exposes Avaya's presence server to the rest of presence-based communications over SIP. It also added the new Avaya Application Enablement Services, which delivers a Web services interface for developers to design new applications for a service-oriented architecture. Cisco has released its own SOA interface as well.

Avaya uses SIP Enablement Services to integrate Cisco's SIP phones into Communication Manager. SIP also extends to Avaya's 3.0 release of Modular Messaging, its unified messaging product, to eliminate hardware interface costs while simplifying integration. Avaya has also doubled its SIP capacity to 5,000 trunks. The additional $25-per-seat SIP licensing costs have also been removed.

QUICK EDITION
But it was Avaya's one-X Quick Edition that grabbed most of the attention. The P2P SIP technology was acquired last year in the Nimcat Networks deal and allows consumers to purchase specially equipped Avaya phones through e-tailors, plug up to 20 of them into their Ethernet switches, and have the phones locate and configure themselves, providing an easy-to-install telephony network. Call control and voicemail are distributed across the Avaya telephones, with the only other hardware requirement being a small gateway to access the PSTN. Should a phone fail, the user can recover voicemail and other features from backed up images distributed across the other phones in the network. Growth is possible by using the same phones with Communication Manager. Phones are currently available through retail channels and list for $485 to $585.

One-X Quick Edition is currently limited to a single site, but according to Jorge Blanco, vice president of strategic marketing at Avaya, customers can expect Avaya to provide those capabilities across sites.

IMPACT

Yet while Quick Edition may make smart business sense for Avaya, it may not make as much sense for its target audience. While IT will appropriately configure QoS and VLAN settings for VoIP on their networks, that's not likely to be the case with small-business owners. For one thing, they're bound to have networks without either technology deployed. And although most QoS problems will be addressed by the sheer capacity of the 100Mbps switched LAN, given voice's importance to a company, neither SMBs nor Avaya would be wise to rely on sheer bandwidth alone to ensure voice quality and continuity. It's too simple for a combination of file transfers, P2P applications, or other technologies to consume enough bandwidth to compromise VoIP's sound quality. Appropriate measures must be taken to ensure the network's suitability for VoIP, whether through technology or, more likely, through documentation, which would work against Quick Edition's message of easy deployment.

What's more, 3Com product manager Greg Zweig suggests that by updating one another, the Quick Edition phones may propagate software errors across the P2P transactions. This might just be the usual vendor FUD, but Tom Petsche, senior product manager in Avaya's converged appliances division, does say all system parameters are shared amongst the phones, not just media files. He was unable to comment at the time as to the security measures Avaya is taking to prevent the corruption of software files.

March 13, 2006

By David Greenfield Networking Pipeline

Skype updated its business offering this week, making the service more suitable than ever for small businesses. Why pay $50 or $60 dollars per line for Centrex or buy a small PBX when Skype for Business seems to offer almost the same capabilities anywhere in the world nearly for free?
Well, not exactly. Skype for Business allows businesses to centralize the purchase of credits needed for purchasing SkypeIn, SkypeOut, voicemail, personalization, and third-party conference calling. Administrators can then distribute Skype credits, topping off all customer accounts. Skype also says its added account codes for knowing who spent those credits. The acquisition and distribution of credits and other functions are managed in a Web console called the Skype for Business Control Panel.

But Skype for Business still comes up short in six areas:

1. Skype for Business still doesn't provide centralized reporting, so business won't be able to monitor how users spend Skype credits. There's no way to monitor or prevent, for example, users from calling 900 numbers and the like.

2. Skype for Business doesn't provide hunt groups where multiple extensions ring when a phone is dialed. Skype was expected to deliver that function in this release.

3. Call transfers still aren't provided.

4. There's no attendant or IVR function, which would redirect calls to other Skype numbers based on user selection. Many IVR functions can be provided through a Web page, but that won't help users who might be calling in from the PSTN.

5. Calls are still encrypted, preventing businesses from ensuring that employees aren't passing information that might violate regulatory restrictions.

6. Forget about E-911 compliance. There is none.

Without those capabilities, don't expect Skype for Business to replace your telephony system any time soon.

Nortel
3/6/2006 12:40:03 PM

Expert Anywhere Solution Enables Video-Based Communications

MARCH 06, 2006, ORLANDO - Vantis Credit Union has deployed the Expert Anywhere Contact Solution from Nortel* [NYSE/TSX: NT], to allow members to interact with service representatives through video kiosks at ATM sites. This allows members to complete transactions which previously required a branch visit. This new solution is designed to make Vantis more competitive by allowing representatives to be more readily accessible regardless of location via a SIP-based multimedia system that allows video, instant messaging and web collaboration.

Expert Anywhere also allows subject matter experts such as loan and investment advisors to be available to the contact center across branch locations to minimize wait times that might otherwise result in abandoned calls.

Vantis is based in Winnipeg, Canada and serves 22,000 members through six branches in Winnipeg with two rural branches in Manitoba.

As a result of this new technology, we are restructuring our internal processes for easy accessibility of our members files from any branch or outlet to provide excellent service at any given time all while reducing our cost base," said Michel Audette, president and CEO, Vantis. "This isn’t about cutting our highly-skilled member service reps, that’s not the effective way. We are focusing on profitable growth and providing superior service. It’s about bringing in new tools that will improve communications with our members."

"We completed a detailed technical analysis to see who has the leading solution. Nortel has the best technology and most importantly, the support required in going forward. Nortel has the capacity to support our project encompassing a call center environment and ongoing application development. The MSC5100 offered a mature platform unparalleled by any competitor. We were very comfortable that Nortel could provide the level of service we need today and as we grow," Audette said.

"Vantis’ innovative roadmap for improving member services with SIP-based applications like video-based services is a typical example of how Nortel is helping its customers maximize their resources through advanced communication solutions," said Roxann Swanson, vice president and general manager, Multimedia Applications, Nortel.

The Expert Anywhere Contact Solution is an integral element of the Nortel Application Center, a SIP-based integrated suite of multimedia applications, consisting of Contact Center 6.0, Multimedia Communication Server (MCS) 5100 and the Communication Server (CS) 1000 IP PBX platforms. Nortel’s Expert Anywhere solution makes agents, no matter where they are, more accessible to customers so that organizations can build better and longer lasting customer relationships.

/noticias.info/ IKEA in the UK has deployed state-of-the-art contact center technology from Nortel* [NYSE/TSX: NT] to speed the resolution of customer requests seamlessly across telephone, email and Web multimedia applications.

The multimedia capabilities of the Nortel solution allow IKEA to resolve more inquiries in less time than with a traditional system, extending its service and reducing costs through increased productivity of IKEA contact centre resources.

In addition, IKEA now has the capability to run outbound campaigns to deliver an improved service to its existing customers. The goal is to provide meaningful information to help customers via the most effective communications medium, regardless of how customers want to access that information.

"Nortel is committed to helping customers like IKEA deliver unparalleled levels of customer service through next-generation contact center technology," said Roxann Swanson, vice president and general manager, Multimedia Applications, Nortel. "To remain competitive, it's essential for organizations like IKEA to raise service levels and adapt to how customers may want to communicate with them. Nortel's contact center solution allows IKEA to meet this challenge head on and remove barriers of distance by giving agents the flexibility and agility to handle customer requests anytime, anywhere."

Nortel's Contact Center 6.0, a key component of the Expert Anywhere Contact solutions, is a next generation SIP-based multimedia contact center which offers a single architecture that enables managers to quickly adapt any contact center to meet diverse customer needs and accelerates customer resolution, often in a single transaction.

In addition to the Contact Center 6.0 solution IKEA is also deploying Nortel's Communication Server (CS) 1000 IP PBX platform, another component of the Expert Anywhere Solution.

3/6/2006 -- The sun wasn't ever supposed to set on the Spanish or British empires, but, of course, it did. In the same way, optimists have heralded the longevity of Time-Division Multiplexing (TDM), which was first productized more than 40 years ago.

Don't look now, but after several false starts, the sun may finally be setting on the longtime digital voice transmission champ -- if new research from market watcher Infonetics Research is to be believed, that is.

According to Infonetics researchers, the enterprise telephony market is in the midst of a move away from TDM-based circuit switching technology toward packet switching. Between 2004 and 2005, for example, worldwide TDM system revenue fell by 15 percent and IP PBX revenue rose by 23 percent, according to Infonetics Research's latest Enterprise Telephony report.

Taken together, worldwide TDM and IP PBX systems revenue amounted to $8.1 billion last year, a 12 percent increase over 2004's total.

That's just the beginning. Between 2005 and 2009, aggregate telephony revenues will grow by as much as 43 percent (reaching approximately $11.6 billion), even though TDM-related revenues are expected to plunge. During that period, for example, IP PBX revenues could grow by up to 82 percent while TDM revenues could plunge by even more -- 88 percent.

"The PBX market came in at our expectations in 2005, and from a global perspective is doing very well," said Matthias Machowinski, directing analyst at Infonetics Research, in a statement. "Worldwide revenue growth accelerated in 2005, although it's mostly coming from EMEA, Asia Pacific and CALA. North America lost revenue share in 2005 as things slowed down here, showing just 4 percent revenue growth for the year."

In the overall PBX/KTS systems market, Nortel, Avaya, Siemens, Alcatel and NEC (in succession) were tops last year in worldwide line shipments. Nortel led in North America, followed by Avaya and Cisco -- although the North American race, in particular, is still very close, Infonetics said.

Elsewhere, last year Cisco dominated the market for IP phones with 42 percent unit market share.

Avaya and Samsung work together to offer IP solutions to businesses

February 28, 2006
By Ian Elwood

Avaya and Samsung have formed an alliance to create IP communications solutions for businesses. Using the triple-play model, Samsung and Avaya aim to create IP applications that would utilize VoIP, video and data for use in offices. Their goal is to offer converged solutions to businesses with a need for more unified communications.

Korea is slated to be the first market for this new venture, with Samsung reselling Avaya's contact center solution. Both companies will also be developing new technologies in cooperation with one another, drawing on the strengths of Avaya for IP based technologies and the sterngth of Samsung in its ability to market to a global clientele.

This is not the first time the two companies have worked together. In the past Samsung has provided services to Avaya in the form of automation of call centers, e-commerce support, network solutions and a variety of other operations.

If this trend continues we will see a greater increase in alliances between technology makers and service providers. This type of symbiotic relationship is essential for survial in a fiercely competetive market, and companies need to realize the benefit of such partnerships in order to stay in business. Strategically utilizing the advantages of another business that has dominance in a particular market niche is one way to assure that both companies will benefit from such alliances.