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Nortel Networks Announces Key Product to Create, Deliver Integrated Multimedia Services

Posted on: Tuesday, 23 September 2003, 06:00 CDT

RESEARCH TRIANGLE PARK, N.C.--(BUSINESS WIRE)--Sept. 23, 2003--Nortel Networks (NYSE:NT)(TSX:NT) today announced a new product that will further expand the palette of multimedia services people may use to communicate, enabling them to choose the most effective or creative form of communication for a given situation.

Nortel Networks Media Application Server will work with Nortel Networks Multimedia Communication Server 5100 and 5200 by adding enhanced media processing functionality -- the cross-engineering of voice, video and text. This will enable service providers to take greater advantage of an IP (Internet Protocol) infrastructure, and to integrate multiple media into one service -- like voice access to e-mail, video e-mail, text-to-speech conversion, video streaming, and 'meet me' videoconferencing.

"We are poised at the beginning of a new era of communication, one that is marked by the integration of communications," said Sue Spradley, president, Wireline Networks, Nortel Networks.

"Over the last 20 years we have seen the emergence of discrete communication vehicles -- like PDAs, cell phones, personal computers, and instant messaging -- that have had a tremendous impact on our lives," Spradley said. "Going forward it will be the integration of these devices and media into one communication session that will revolutionize the way we interact."

By introducing Media Application Server, service providers will be positioned to drive additional revenue opportunities by creating new, customized services for consumers and enterprises. Enterprises will be able to take advantage of these powerful new multimedia capabilities through services hosted by service providers, or by deploying products from the Nortel Networks Multimedia Communications Portfolio in their corporate networks.

"Service providers need to create new applications in order to maintain market share and drive top line revenues," said Danny Klein, analyst, Yankee Group. "Building on the success of their Multimedia Communication Server, Nortel Networks Media Applications Server delivers the features necessary for multimedia services. By supporting capabilities such as speech recognition, text-to-speech, and DTMF detection, this robust platform can enable service providers to take advantage of IP technology. These features will help accelerate the delivery of new multimedia services, which will one day be as prevalent as today's Caller ID and Call Waiting."

Media Application Server will have several distinct advantages over other products in the industry. Developed from the ground-up for an IP infrastructure, Media Application Server will position service providers to deploy new, creative applications without the restrictions imposed by traditional TDM solutions. Of equal importance, Nortel Networks will seamlessly integrate these new services with traditional telephony services and devices.

Nortel Networks will implement enhanced media processing capabilities in software rather than hardware, making it easier to adapt to new media and create new services. Resources will be scheduled, prioritized and dynamically allocated to applications as required, providing a more cost-effective solution than a hardware-based approach.

Media Application Server will support open interfaces -- such as SOAP (Simple Object Access Protocol) and VoiceXML (VXML) -- to help expand the number of applications and services and speed time-to-market. By the second half of 2004, Media Application Server will also support multiple scripting engines for third party development, including Application Development Toolset (ADT), VoiceXML 2.0, CCXML, and SALT.

Nortel Networks Multimedia Communication Server 5100 and 5200 leverage an open, standards-based architecture, commercially available hardware, and the same software. The two products enable creation of advanced multimedia and collaboration applications for businesses and consumers. Nortel Networks Media Application Server -- scheduled to be commercially available for service providers in November 2003 -- will work in conjunction with these products to enable creation of new, customized multimedia services. In the future, Media Application Server will also be available to service providers as a stand-alone product.

Nortel Networks ranked #1 globally in voice over IP and voice over ATM ports shipped and global softswitch revenues in the first and second quarters of 2003, according to Synergy Research Group. Nortel Networks has the industry's most proven portfolio of equipment for voice over IP and multimedia services. It enables delivery of solutions across all four carrier voice over IP market applications: cable, local, long distance and wireless.

Nortel Networks is an industry leader and innovator focused on transforming how the world communicates and exchanges information. The Company is supplying its service provider and enterprise customers with communications technology and infrastructure to enable value-added IP data, voice and multimedia services spanning Wireless Networks, Wireline Networks, Enterprise Networks, and Optical Networks. As a global company, Nortel Networks does business in more than 150 countries. More information about Nortel Networks can be found on the Web at www.nortelnetworks.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 severity and duration of the industry adjustment and continued reductions in spending by our customers; the sufficiency of our restructuring activities, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions; fluctuations in operating results and general industry, economic and market conditions and growth rates; the ability to recruit and retain qualified employees; fluctuations in cash flow, the level of outstanding debt and debt ratings; the ability to meet financial covenants contained in our credit agreements; the ability to integrate the operations and technologies of acquired businesses in an effective manner; the impact of rapid technological and market change; the impact on our gross margins and other impacts 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 in the telecommunications industry; the dependence on new product development and our ability to predict market demand for particular products; the uncertainties of the Internet; the impact of the credit risks of our customers and the impact of customer financing and commitments; the impact of a consolidation of our common shares; stock market volatility generally and as a result of acceleration of the settlement date or early settlement of our purchase contracts; the entrance into an increased number of supply and outsourcing contracts which contain delivery and installation provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; the ability to obtain timely, adequate and reasonably priced component parts from suppliers and internal manufacturing capacity; the outcome of our asset and liability review; the future success of our strategic alliances; risks related to our defined benefit plans; the impact of additional valuation allowances for all or a portion of our deferred tax assets required if market conditions further deteriorate or future results of operations are less than expected; an inability of our subsidiaries to provide funding to the respective parent companies; restrictions on our cash as cash collateral if satisfactory arrangements for alternative support for certain obligations are not in place; and the adverse resolution of litigation and intellectual property disputes. For additional information with respect to certain of these and other factors, see the reports filed by Nortel Networks with the United States Securities and Exchange Commission. Unless otherwise required by applicable securities laws, Nortel Networks disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Nortel Networks, the Nortel Networks logo and the Globemark are trademarks of Nortel Networks.

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