Nortel
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Nortel

June 12, 2007 09:00 ET

Survey Finds Unified Communications and IP Telephony Benefits Drive Businesses to Upgrade Both Voice and Data Networks

Productivity Gains, Managing Proliferation of Devices are Viewed as Top Drivers

TAMPA, FLORIDA--(Marketwire - June 12, 2007) - The increased productivity and simplicity of unified communications (UC) and IP telephony (IPT) are driving businesses to upgrade their existing voice and data networks, according to a Nortel(1) (TSX:NT)(NYSE:NT) survey of 464 members of the International Nortel Networks User Association (INNUA). Members are meeting in Tampa, Florida, this week at Global Connect, INNUA's annual conference for Nortel enterprise customers.

Respondents listed productivity gains and the proliferation of devices as the main drivers for moving to unified communications. They also said the migration was a significant driver in upgrading their enterprise data network. This proliferation of devices is a growing challenge for today's businesses according to the survey results, with 69 percent saying the management of multiple communications devices is a top issue. Similarly, 53 percent highlighted the challenge of providing access to critical information from multiple locations and devices.

Unified communications was seen as being able to address these issues. Fifty-three percent of respondents said improved productivity was a key driver for the move to UC, 37 percent highlighted improved collaboration capabilities and 37 percent emphasized the ability to access critical information anywhere from any device.

Eighty-four percent were interested in integrating voice and communications into business process consistent with unified communications and Services-Oriented Architecture (SOA) approaches. Sixty-seven percent said that this integration enhanced productivity by streamlining processes.

"IP telephony is a stepping stone for enterprises as they transform towards a true unified communications environment that increases productivity through anywhere, anytime access to critical business information," said Victor Bohnert, executive director, INNUA. "As businesses continue to aggressively migrate to VoIP, they see unified communications as a way to manage the proliferation of devices and their increasingly mobile workforce to create a business advantage."

There has been a 40 percent increase in IP telephony deployment over the past three years. Sixty-seven percent of respondents say they have already partially or fully deployed IP telephony in their enterprise, with 75 percent planning additional investments in IPT. Only 7 percent of respondents said they currently had no plans to move to IP telephony.

The move to IPT is also a significant driver for data network upgrades among INNUA members, with one in two saying they upgraded some portion of their data network when moving to IPT. Eighty percent of these upgrades involved upgrades to LAN equipment that provided Power over Ethernet (PoE) capabilities. PoE enables the electrical requirements of VoIP phones to be provided through the network's Ethernet cables. For 37 percent of respondents, data upgrades involved new routers that could better handle the performance requirements of supporting VoIP traffic.

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 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", "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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