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Nortel Networks

Jazztel Launches VoIP Service for Carriers With Nortel Solution

Madrid, Spain (ots/PRNewswire)

- Network Enhancement Enables New Revenue-Generating Opportunity
has
launched wholesale carrier international VoIP services using
Nortel(x)  (NYSE: NT , TSX: NT) next-generation technology.
A leading telecommunications and data transmission carrier in
Spain,  Jazztel, has deployed Nortel's carrier-grade Communication
Server 2000  superclass softswitch technology to more
cost-effectively enhance its  original network to provide the
next-generation capacity and performance  needed to create new
revenue-generating wholesale international services  for its service
provider customers. In addition to technology, Nortel is  providing
Jazztel with deployment and maintenance services from the Nortel
Global Services portfolio.
"Jazztel's network upgrade is vital to helping us introduce new
services and create new revenue streams," said Rafael Conejos,
chairman,  Jazztel. "In the late 1990s, as one of several fixed-line
operators  emerging in Spain, we set a flexible foundation for the
future by investing  in a network backbone and added extensive
last-mile connectivity from  Nortel. This initial investment meant
that when we wanted to upgrade our  network, Nortel carrier- class
switching technology was easily deployed to  provide additional
capacity for our new wholesale services."
"For Jazztel, quality of service, network efficiency and economies
of  scale are vital to its competitive edge," said Casimir Alonso,
vice  president, Nortel Iberia, "Nortel's expertise in designing,
installing and  managing sophisticated next-generation networks is
helping Jazztel drive  new revenue- generating services and lower
operating costs."
Jazztel's fiber-optic local access and backbone network were
originally  built by Nortel in 1998 to enable alternative local and
long-distance voice  services including international connections, as
well as data and Internet  services. Since then, Nortel has continued
to support the Jazztel network  with professional services including
preventative and remedial services.  When the company explored the
feasibility of providing wholesale service  capabilities Nortel
offered a solution based on its carrier class switching  technology.
The CS 2000 is a superclass softswitch providing consolidated
local,  tandem and long distance capabilities that enable service
providers to more  cost-effectively transition to Voice over Packet
without investing in less  efficient overlay solutions. The network
deployment included converting the  existing DMS 100 network into a
DMS-CS 2000 Hybrid so that the Jazztel  platform can provide
traditional switching capabilities and soft-switch  capabilities.
This network enhancement positions Jazztel to provide new
revenue-generating wholesale service capabilities, including
international  traffic interconnection without increasing network
investment.
Nortel's Global Services portfolio offers a full range of
integrated  professional services to provide end-to-end, multi-vendor
network solutions  that deliver significant business value. Nortel
provides the necessary  services to design, deploy, manage and
maintain today's multi-vendor  networks and to facilitate transition
to next generation technologies.
About Jazztel
Jazztel is a leading telecommunications and data transmission
carrier  with its own infrastructure in Spain. The company offers
broadband  solutions for voice, data and Internet traffic geared
towards residential  and business markets. Jazztel has rolled out its
network in more than 100  metropolitan areas and business parks in
Spain. This local access network  infrastructure along with its
backbone network is one of the most rapid  telecommunications
networks in Europe. For more information, visit Jazztel  on the web
at www.jazztel.es.
About Nortel
Nortel is a recognized leader in delivering communications
capabilities  that enhance the human experience, ignite and power
global commerce, and  secure and protect the world's most critical
information. Our next- generation technologies, for both service
providers and enterprises, span  access and core networks, support
multimedia and business-critical  applications, and help eliminate
today's barriers to efficiency, speed and  performance by simplifying
networks and connecting people with information.  Nortel does
business in more than 150 countries. For more information,  visit
Nortel on the Web at www.nortel.com. For the latest Nortel news,
visit www.nortel.com/news.
Certain statements in this press release may contain words such as
" could", "expects", "may", "anticipates", "believes", "intends",
"estimates ", "plans", "envisions", "seeks" and other similar
language and are  considered forward-looking statements or
information under applicable  securities legislation. These
statements are based on Nortel's current  expectations, estimates,
forecasts and projections about the operating  environment, economies
and markets in which Nortel operates. These  statements are subject
to important assumptions, risks and uncertainties,  which are
difficult to predict and the actual outcome may be materially
different. Although Nortel believes expectations reflected in such
forward- looking statements are reasonable based upon the assumptions
in this press  release, they may prove to be inaccurate and
consequently Nortel's actual  results could differ materially from
its expectations set out in this press  release. Further, actual
results or events could differ materially from  those contemplated in
forward-looking statements as a result of the  following (i) risks
and uncertainties relating to Nortel's restatements and  related
matters including: Nortel's recently announced restatement and two
previous restatements of its financial statements and related events
and  that the previously filed financial statements of Nortel and NNL
and  related audit reports should not be relied upon; the negative
impact on  Nortel and NNL of their announced restatement and delay in
filing their  financial statements and related periodic reports
causing them to breach  their public debt indentures and obligations
under their credit facilities  with the possibility that the holders
of their public debt or NNL's lenders  would seek to accelerate the
maturity of that debt; and causing a breach of  NNL's support
facility with EDC with the possibility that EDC would refuse  to
issue additional support under the facility, terminate its
commitments  under the facility or require NNL to cash collateralize
all existing  support; legal judgments, fines, penalties or
settlements, or any  substantial regulatory fines or other penalties
or sanctions, related to  the ongoing regulatory and criminal
investigations of Nortel in the U.S.  and Canada; any significant
pending civil litigation actions not  encompassed by Nortel's
proposed class action settlement; any substantial  cash payment
and/or significant dilution of Nortel's existing equity  positions
resulting from the finalization and approval of its proposed  class
action settlement, or if such proposed class action settlement is not
finalized, any larger settlements or awards of damages in respect of
such  class actions; any unsuccessful remediation of Nortel's
material weaknesses  in internal control over financial reporting
resulting in an inability to  report Nortel's results of operations
and financial condition accurately  and in a timely manner; the time
required to implement Nortel's remedial  measures; Nortel's inability
to access, in its current form, its shelf  registration filed with
the United States Securities and Exchange  Commission (SEC), and
Nortel's below investment grade credit rating and any  further
adverse effect on its credit rating due to Nortel's restatement of
its financial statements; any adverse affect on Nortel's business and
market price of its publicly traded securities arising from
continuing  negative publicity related to Nortel's restatements;
Nortel's potential  inability to attract or retain the personnel
necessary to achieve its  business objectives; any breach by Nortel
of the continued listing  requirements of the NYSE or TSX causing the
NYSE and/or the TSX to commence  suspension or delisting procedures;
any default in Nortel's filing  obligations extending beyond May 9,
2006, causing any Canadian securities  regulatory authority to impose
an order to cease all trading in Nortel's  securities within the
applicable jurisdiction or to impose such an order  sooner if Nortel
fails to comply with the alternate information guidelines  of such
regulatory authorities; (ii) risks and uncertainties relating to
Nortel's business including: yearly and quarterly fluctuations of
Nortel's  operating results; reduced demand and pricing pressures for
its products  due to global economic conditions, significant
competition, competitive  pricing practice, cautious capital spending
by customers, increased  industry consolidation, rapidly changing
technologies, evolving industry  standards, frequent new product
introductions and short product life cycles , and other trends and
industry characteristics affecting the  telecommunications industry;
any material and adverse affects on Nortel's  performance if its
expectations regarding market demand for particular  products prove
to be wrong or because of certain barriers in its efforts to  expand
internationally; any reduction in Nortel's operating results and any
related volatility in its market price of its publicly traded
securities  arising from any decline in its gross margin, or
fluctuations in foreign  currency exchange rates; any negative
developments associated with Nortel's  supply contract and contract
manufacturing agreements including as a result  of using a sole
supplier for key optical networking solutions components,  and any
defects or errors in Nortel's current or planned products; any
negative impact to Nortel of its failure to achieve its business
transformation objectives; restrictions on how Nortel and its
president and  chief executive officer conduct its business arising
from a settlement with  Motorola Inc.; additional valuation
allowances for all or a portion of its  deferred tax assets; Nortel's
failure to protect its intellectual property  rights, or any adverse
judgments or settlements arising out of disputes  regarding
intellectual property; changes in regulation of the Internet and/ or
other aspects of the industry; Nortel's failure to successfully
operate  or integrate its strategic acquisitions, or failure to
consummate or  succeed with its strategic alliances; any negative
affect of Nortel's  failure to evolve adequately its financial and
managerial control and  reporting systems and processes, manage and
grow its business, or create an  effective risk management strategy;
and (iii) risks and uncertainties  relating to Nortel's liquidity,
financing arrangements and capital  including: the impact of Nortel's
recently announced restatement and two  previous restatements of its
financial statements; any acceleration under  their public debt
indentures and credit facilities, which may result in  Nortel and NNL
being unable to meet their respective payment obligations;  any
inability of Nortel to manage cash flow fluctuations to fund working
capital requirements or achieve its business objectives in a timely
manner  or obtain additional sources of funding; high levels of debt,
limitations  on Nortel capitalizing on business opportunities because
of credit facility  covenants, or on obtaining additional secured
debt pursuant to the  provisions of indentures governing certain of
Nortel's public debt issues  and the provisions of its credit
facilities; any increase of restricted  cash requirements for Nortel
if it is unable to secure alternative support  for obligations
arising from certain normal course business activities, or  any
inability of Nortel's subsidiaries to provide it with sufficient
funding; any negative affect to Nortel of the need to make larger
defined  benefit plans contributions in the future or exposure to
customer credit  risks or inability of customers to fulfill payment
obligations under  customer financing arrangements; any negative
impact on Nortel's ability to  make future acquisitions, raise
capital, issue debt and retain employees  arising from stock price
volatility and further declines in Nortel's market  price of its
publicly traded securities, or any future share consolidation
resulting in a lower total market capitalization or adverse affect on
the  liquidity of Nortel's common shares. For additional information
with  respect to certain of these and other factors, see Nortel's
securities  filings with the SEC. Unless otherwise required by
applicable securities  laws, Nortel disclaims any intention or
obligation to update or revise any  forward-looking statements,
whether as a result of new information, future  events or otherwise.
(x) Nortel, the Nortel logo and the Globemark are trademarks of
Nortel Networks.

Contact:

For further information: Jose-Luis Menoyo, +34-917-09-4567,
menoyo@nortel.com; Jesus Carrillo, +34-91-291-7200,
jesus.carrillo@jazztel.com

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