Verizon Communications will accelerate the evolution of its nationwide wireline network to packet-switching technology and has selected Nortel Networks as its VoIP equipment provider. Verizon will begin deployment of the new Nortel Networks equipment in its local and long-distance voice wireline networks later this year, tying the VoIP capabilities into its Enterprise Advance and FTTP initiatives. Verizon's initial service deployment is scheduled for mid-2004 and is expected to include hosted VoIP and multimedia services for business and consumers. Lawrence T. Babbio Jr., Verizon vice chairman and telecom president, described the packet migration to be "...as significant as when the industry began moving from analog to digital technology in the 1980s."
Verizon and Nortel Networks have signed an interim letter of agreement and expect to finalize a five-year contract within the next few months. Under the arrangement, Nortel Networks will be the exclusive provider of Verizon's local and long-distance Class 4 (tandem) and Class 5 (local) VoIP switches in new offices over the next 18 months. Nortel Networks will also be the exclusive supplier of Verizon's VoIP and multimedia services infrastructure over the next 18 months. Furthermore, the companies will collaborate on packet voice solutions for enterprise customers. Financial terms were not disclosed.
Nortel Networks described the project as one of its most comprehensive converged-network wins to date. The deal covers the full range of Nortel Networks' carrier packet platforms. Specifically, Verizon will begin the replacement of a number of its traditional local switches with Nortel Networks softswitches and VoIP gateways. In addition, Verizon will begin using the Nortel Networks switches to expand the company's long-distance network. Nortel Networks has already begun shipping softswitch equipment for Verizon's long-distance, tandem, and end-office networks, including Succession Communication Server (CS) 2000 Superclass softswitches and local and long-distance access gateways. Other Nortel Networks equipment expected to be deployed by Verizon includes Nortel Networks Passport* Packet Voice Gateway, Succession Multiservice Gateway 4000, Succession Media Gateway 9000, and the Multimedia Communication Server 5200. http://www.nortelnetworks.comhttp://www.verizon.com
- In November 2003, Lawrence T. Babbio Jr., Verizon's Vice Chairman and Domestic Telecom President said that Verizon Communications plans to begin rolling out VoIP services in Q2 2004, targeting DSL users and the consumer market. http://www.convergedigest.com/Bandwidth/newnetworksarticle.asp?ID=9434
- Also in November 2003 -- one year after unveiling an ambitious plan to expand its high-speed data network nationwide -- Verizon Communications announced that it had closed over 900 sales with more than 550 of its largest customers, including 65 Fortune 500 corporations as well as many educational institutions. Verizon's Enterprise Advance portfolio offers Frame Relay, ATM, SONET and Ethernet-over-SONET connectivity in some 40 markets across the country. The company has previously disclosed plans to enter 56 markets. In the initiative's first year, Verizon has added over 6,800 fiber miles to its network, expanding nine regional optical rings in the Northeast, Northwest and the Great Lakes regions. Verizon also launched Verizon Optical Networking (VON), an optical service that provides long-distance, point-to-point communications over the public network. In the next phases of Enterprise Advance, Verizon plans to connect its regional optical rings across the nation. The company will also deploy almost 300 MPLS routers that will be capable of integrating Frame Relay and other protocols into an IP VPN. Verizon has already deployed more than 80 of these routers in some 30 markets. The full rollout of MPLS will support additional services such as IP-VPN on a national basis.
- Nortel Networks' major VoIP carrier customer announcements to date have included: Bell Canada, Dacom, China Netcom, Cox, MCI, SaskTel and Sprint, among others.
- On 07-Jan-04, shares of Nortel Networks (NT) closed up 19.3% at $5.68..
