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July 06, 2005 22:22 ET

James Cook Deploying High-Speed Converged Network from Nortel, Commander; Secure Network to Provide Students, Staff with Rich Multimedia Services

TOWNSVILLE, Australia--(CCNMatthews - Jul 6, 2005) -

James Cook University (JCU) in north Queensland is deploying a high-speed network from Nortel (NYSE: NT)(TSX: NT) to deliver converged multimedia services to students and staff across multiple campuses.

This will be a major upgrade to the university's network, providing an infrastructure for delivering multimedia services like multicast video and IP (Internet Protocol) telephony. Nortel's Gold nPower partner, Commander, is implementing the upgrade. JCU is investing AU$2 million in the network upgrade.

Founded in 1970, JCU is Australia's leading tropical research university, with 14,000 students spread across campuses in Townsville and Cairns and learning centres in Mount Isa, Mackay and Thursday Island. The University offers courses in a broad range of study areas with a strong research focus, and was recently ranked eighth among Australian universities by the Swiss Centre for Science and Technology's Research Champions League.

"We wanted a network infrastructure that provided a sound, scalable foundation for delivering rich multimedia and high-speed data services to our students and staff and put us at the forefront of universities and schools in the region," said Professor Andrew Vann, pro-vice chancellor, Information Services and Technologies, James Cook University.

"Our network improvements had to meet critical objectives, such as significantly expanding our range of communication services while reducing network complexity and management," Vann said. "Nortel's highly cost-competitive solution not only met these objectives but also gave us flexibility to meet future needs without making major additional investments in the network."

With the new network capabilities, students will be able to take advantage of high-speed multicasting services like high-definition video streaming directly to the desktop, giving them a far richer multimedia experience than previously possible. Staff will enjoy faster, more reliable and secure network services without disruption regardless of how many users over available ports are accessing the network.

Nortel and Commander were chosen by JCU after a round of technical presentations identified the 10-Gigabit solution as most suited to JCU's requirements.

Vann said the new network should deliver tangible benefits for everyone at JCU, from students and staff to network administrators.

The Nortel solution will include:

-- Nortel Ethernet Routing Switch 8600 -- 10-Gigabit core switch

-- Nortel Ethernet Routing Switch 5530 -- for one- to 10-Gigabit distribution

-- Nortel Ethernet Routing Switch 5520 -- 10/100/1000 Megabit edge switches with power-over-Ethernet (PoE)

This will provide 8,500 Ethernet ports with PoE across all campuses.

"Together with highly experienced and proficient partners like Commander, we have extensive experience globally in the design and deployment of network solutions for distributed environments such as JCU," said Mark Stevens, president, Australia and New Zealand, Nortel. "We worked closely with Commander to identify JCU's unique requirements and tailor cost-effective, technically advanced solutions that maximised the benefits we could collectively offer."

"For JCU we are using switch clustering architecture to provide a solution that is purposely designed for real-time multimedia applications by providing resiliency, scalability and simplicity of deployment and management," Stevens said. "We expect total cost of ownership to be further reduced via support of industry standards so that re-training of existing administration staff is kept to a minimum."

These functions were verified in a recent Tolly Group report on Ethernet Routing Switch 8600.

"Tolly Group testing shows that Nortel's Resilient Terabit Cluster Solution allows Enterprise and Service Providers to scale Gigabit and 10-Gigabit Ethernet connections with sub-second failover while processing 649 million frames per second," said Kevin Tolly, president, chief executive officer and founder of The Tolly Group. "This resiliency provides non-stop performance for the triple play of voice, video and data in the event of a network disruption."

Carl van Wyk, communications infrastructure manager, James Cook University, said the University is considering a wholesale migration to IP telephony next year, with the new network presenting an open migration path to the technology.

"Our existing PABX is nearing the end of its life, so a move to IP telephony is the logical next step in our network evolution," van Wyk said. "One of the many benefits of Nortel's IP telephony-enabled solution is that it gives us the platform we need for a straight migration to IP telephony without having to reinvest in the network infrastructure. Since our network ports provide PoE, it's simply a matter of switching on IP services at the core and connecting IP handsets at the desktop. Nortel doesn't limit us to using its IP telephony hardware either, so in terms of scalability and choice, we're more than happy with our future options."

The first phase of the network deployment will be completed in September 2005, with the full network expected to go live in readiness for the 2006 academic year.

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. Serving both service provider and enterprise customers, Nortel delivers innovative technology solutions encompassing end-to-end broadband, Voice over IP, multimedia services and applications, and wireless broadband designed to help people solve the world's greatest challenges. 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.

About Commander

The Commander business has been tailoring communications technology to meet Australia's business needs nationally for over 20 years. Commander began with office telephone systems and through a series of strategic acquisitions and relationships with leading technology companies, has broadened its expertise to provide a complete communications solution spanning voice, data, Internet, mobile and network products and services. In addition to a full range of products, Commander has one of the largest business-dedicated technical forces in Australia. More information is available at www.commander.com.

Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events.

Factors which could cause results or events to differ from current expectations include, among other things: the outcome of regulatory and criminal investigations and civil litigation actions related to Nortel's restatements and the impact any resulting legal judgments, settlements, penalties and expenses could have on Nortel's results of operations, financial condition and liquidity, and any related potential dilution of Nortel's common shares; the findings of Nortel's independent review and implementation of recommended remedial measures; the outcome of the independent review with respect to revenues for specific identified transactions, which review will have a particular emphasis on the underlying conduct that led to the initial recognition of these revenues; the restatement or revisions of Nortel's previously announced or filed financial results and resulting negative publicity; the existence of material weaknesses in Nortel's internal control over financial reporting and the conclusion of Nortel's management and independent auditor that Nortel's internal control over financial reporting is ineffective, which could continue to impact Nortel's ability to report its results of operations and financial condition accurately and in a timely manner; the impact of Nortel's and NNL's failure to timely file their financial statements and related periodic reports, including Nortel's inability to access its shelf registration statement filed with the United States Securities and Exchange Commission (SEC); ongoing SEC reviews, which may result in changes to Nortel's and NNL's public filings; the impact of management changes, including the termination for cause of Nortel's former CEO, CFO and Controller in April 2004; the sufficiency of Nortel's restructuring activities, including the work plan announced on August 19, 2004 as updated on September 30, 2004 and December 14, 2004, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions;

cautious or reduced spending by Nortel's customers; increased consolidation among Nortel's customers and the loss of customers in certain markets; fluctuations in Nortel's operating results and general industry, economic and market conditions and growth rates; fluctuations in Nortel's cash flow, level of outstanding debt and current debt ratings; Nortel's monitoring of the capital markets for opportunities to improve its capital structure and financial flexibility; Nortel's ability to recruit and retain qualified employees; the use of cash collateral to support Nortel's normal course business activities; the dependence on Nortel's subsidiaries for funding; the impact of Nortel's defined benefit plans and deferred tax assets on results of operations and Nortel's cash flow; the adverse resolution of class actions, litigation in the ordinary course of business, intellectual property disputes and similar matters; Nortel's dependence on new product development and its ability to predict market demand for particular products; Nortel's ability to integrate the operations and technologies of acquired businesses in an effective manner; the impact of rapid technological and market change; the impact of price and product competition; barriers to international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; the impact of rationalization and consolidation in the telecommunications industry; changes in regulation of the Internet; the impact of the credit risks of Nortel's customers and the impact of customer financing and commitments; stock market volatility generally and as a result of acceleration of the settlement date of Nortel's forward purchase contracts; negative developments associated with Nortel's supply contracts and contract manufacturing agreements, including as a result of using a sole supplier for a key component of certain optical networks solutions; the impact of Nortel's supply and outsourcing contracts that contain delivery and installation provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; and the future success of Nortel's strategic alliances.

For additional information with respect to certain of these and other factors, see the most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed by Nortel 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.

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