November 20, 2008 06:00 ET

Nortel Helps Small and Medium Sized Businesses Get More Powerful, Cost Effective Communications

TORONTO, ONTARIO--(Marketwire - Nov. 20, 2008) - Using an IP Powered Business solution from Nortel(1) (TSX:NT)(NYSE:NT), service providers can help their enterprise and small and medium sized business (SMB) customers reduce their monthly bills with an IP PBX trunking solution that eliminates the need for separate voice and data connections.

Back in the days of wireline telephony, when all phone calls went over the public switched telephone network (PSTN), businesses would purchase "trunks" - a dedicated line or a bundle of circuits - from their service provider to connect to a PBX. Today, Nortel has adapted the concept of "trunking" to the IP-enabled landscape resulting in lower telephony costs, rapid return on investment (ROI) plus the future opportunity for enhanced communications including Instant Messaging (IM), presence, white boarding and application sharing. Nortel's IP PBX solution is one of two access options available in Nortel's IP Powered Business solutions, announced in October 2007.

Why Nortel for SIP PBX Trunking?

- Nortel already provides IP PBX trunking today through H.323 IP connectivity - a common global standard for packet networks - and to date, Nortel has sold more than one million H.323 ports.

- According to Dell'Oro Group, Nortel is the worldwide leader in Carrier VoIP and has been every year for six years running (2002-2007).

- Nortel's solution ensures SMBs and Enterprises do no lose any capabilities when moving from Primary Rate Interface (PRI) to IP.

- Nortel VoIP VPN service allows businesses with multiple sites to mix PBX and hosted lines in a single business group enabling features like least cost routing which selects the least expensive route for the call.

- Nortel will deliver Carrier Hosted unified communications to businesses behind an IP PBX even if their PBX does not support unified communications directly from their service provider.

Highlights / Key Facts

- For service providers:

- SIP PBX Trunking simplifies access infrastructure - since only one IP pipe connects to the enterprise for voice and data - and therefore reduces operational costs.

- SIP PBX Trunking provides the opportunity to sell revenue-generating applications to their subscribers like unified communications, or VOIP VPN, on top of voice communications.

- For SMBs and Enterprises:

- SIP PBX Trunking reduces monthly communication costs by making it unnecessary to subscribe to Integrated Services Digital Network (ISDN) Basic or Primary Rate Interfaces (BRI / PRI). This eliminates the need to purchase expensive PSTN gateway cards to convert IP back to BRI or PRI for new IP PBX's and eliminating the need for separate voice and data connections.

- SIP PBX Trunking allows an easy evolution to unified communications. Nortel estimates that unified communications can help businesses realize cost-savings and an increase in productivity of up to 18 percent.


According to Gartner: "A systematic approach to integrating and/or migrating through successive generations of telephony - such as PBX, IP-PBX, IP telephony (IPT), IT platform communications (ITC) and Session Initiation Protocol (SIP) - across an enterprise can deliver tactical, operational cost savings of 15 percent to 30 percent as they are implemented."(i)

Samih Elhage, president, Carrier VoIP and Applications Solutions, Nortel : "Nortel's IP solution can help service providers offer simple yet powerful IP solutions to their customers to help keep up with the rapid pace of today's enterprise business environment. In today's economic landscape, it is important to provide our customers with long-term, cost-effective solutions for both their business and their customers. Nortel's SIP PBX trunking solution is a perfect solution giving service providers a simple, cost-effective way to deliver advanced VoIP solutions to their network of enterprise and SMB customers. Through powerful, cutting-edge business solutions like this, service providers can keep their customers ahead of the technology curve while keeping their operational costs down and their service offerings affordable."

Links / URLS

Nortel Communication Server (CS) 2000

Nortel Communication Server (CS) 1000

Nortel Business Communications Manager (BCM) 50

(i) Gartner, Inc. "Cost Cutting in Enterprise Telephony" by Geoff Johnson and Jay Lassman, June 12, 2008

About Nortel

Nortel is a recognized leader in delivering communications capabilities that make the promise of Business Made Simple a reality for our customers. Our next-generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel's technologies are designed to help eliminate today's barriers to efficiency, speed and performance by simplifying networks and connecting people to the information they need, when they need it. Nortel does business in more than 150 countries around the world. For more information, visit Nortel on the Web at For the latest Nortel news, visit

Certain statements in this press release may contain words such as "could", "expects", "may", "anticipates", "believes", "intends", "estimates", "targets", "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 from those contemplated in forward-looking statements. For additional information with respect to certain of these and other factors, see Nortel's Annual Report on Form10-K, Quarterly Reports on Form 10-Q and other 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.

(1)Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks.

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