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VoIP Systems

Nortel Resells Genband Gateways

Nortel Networks Ltd. today announced a partnership with Genband Inc. that will help it move carriers from legacy TDM to VOIP gear. (See Nortel, Genband in VOIP Play .)

As part of the agreement, Nortel will resell, distribute, and support the Genband G6 Universal Media Gateway and G2 Compact Media Gateway as part of an end-to-end VOIP migration solution that will also include the Nortel Communication Server (CS) 1500 and CS 2000 products.

Through the partnership, Nortel will target rural carriers that are looking to replace legacy Class 5 TDM switches with more cost-effective VOIP systems. The deal will allow Nortel to support VOIP migration from DCO (digital central office) and EWSD (German acronym for Electronic Digital Switching System) switches through interoperability with the Genband gateways.

Rob Scheible, Nortel's senior marketing manager for carrier VOIP and multimedia, says, "To a carrier that means they can move more of the network to IP without having to churn existing POTS infrastructure they have out there."

Noting that more than half of all lines in North America still run on legacy infrastructure, "there's a huge opportunity" in upgrading local class 5 switches, Scheible says. He estimates there are more than 3,000 legacy voice nodes that can be upgraded with the combined Nortel-Genband solution.

Heavy Reading analyst Joe McGarvey says the deal "gives Nortel an opportunity to go after some of the non-Nortel switches in the market. It gives them an advantage in competing for DCO and EWSD business."

Genband added DCO and EWSD capabilities to its gateways through its acquisition of the Siemens AG (NYSE: SI; Frankfurt: SIE) DCO business in October of last year. From that deal, Genband bought the right to rebuild the EWSD switching core and upgrade the rest of the voice network with its G6 Universal Access gateways. Genband has also added DCO and EWSD support to its G2 product, which is a compact and hardened gateway for deployment in remote locations. (See GenBand Buys Siemens Unit, Genband Intros Gateways, and NXTcomm Preview: VOIP equipment.)

Since that deal, Siemens has decided to discontinue its sale of EWSD components and parts, and will end support for EWSD products in January 2008. That will leave the market for upgrading EWSD systems wide open. (See Siemens Switches Away From EWSD.)

While the partnership gives Nortel a migration path for other vendor switches, Genband marketing VP Jody Bennett says the agreement helps his company expand its sales opportunities by diversifying its channel partners.

"The main thing this shows is Genband's strategy is to be 'Genband Inside,' working with companies like Nortel and Alcatel-Lucent" to provide end-to-end solutions, Bennett says.

Heavy Reading's McGarvey thinks that's a sound strategy, and believes the partnership is "a good move for Genband." The more partners the company has, he says, the more revenue opportunities Genband will see.

Nortel expects support for Genband's media gateways to begin in the fourth quarter for the CS 1500 and in 2008 for the CS 2000, with field trials long before that.

— Ryan Lawler, Reporter, Light Reading

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mu-law 12/5/2012 | 3:05:25 PM
re: Nortel Resells Genband Gateways Wow, now this is what I'd call "brute force" FUD:

Rumor is

Oh here we go...who's rumor? Another Charlie hater?

the hammer fell again at GenBand this week with layoffs

Layoffs of who? Scores of top performers just like they do at Cisco?

possible discontinuation of some of the...products they acquired in the last year

Wouldn't they have done that at the outset when they cut the loser products, people, etc?

Where is LR coverage of this part of the story?

You must have scoop'd em!

finding their own salesforce expendable or ineffective?

Interesting. Anybody know how they did last quarter? I'm sure that NT OEM deal will take them from bad to worse...

I hear the M5 is up for the chopping block in favor of the M6

Yeah and I heard NT has just cancelled the 2K...

trzwuip 12/5/2012 | 3:05:25 PM
re: Nortel Resells Genband Gateways I hear the M5 is up for the chopping block in favor of the M6 (which used to be Vocal Data and T-6000). DCO seems to be going nowhere very fast and their switching stuff is apparently discontinued already...
trzwuip 12/5/2012 | 3:05:25 PM
re: Nortel Resells Genband Gateways Rumor is that the hammer fell again at GenBand this week with layoffs and possible discontinuation of some of the "mixed vegetable soup" of products they acquired in the last year.

Where is LR coverage of this part of the story? Is GenBand relying more on "partners" for revenue and finding their own salesforce expendable or ineffective?
trzwuip 12/5/2012 | 3:05:24 PM
re: Nortel Resells Genband Gateways Well, I was kind of wondering what they need with the Gateway myself with those two products?

What is unique about the GenBand Gateway that is not, or will not be built into the CS-1500 and CS-2k?

I agree that this does create a competitor for Nortel's PGI (Packet Gateway Interface) for the DMS-10. They have quite a few of these deployed...
icunow 12/5/2012 | 3:05:24 PM
re: Nortel Resells Genband Gateways With the CS1500 and CS2000 now they have yet another PSTN gateway. This seems to create competition for Nortel's PVG/MG15k all-in-one media gateway product.

I smell some potential bonuses for deal makers and another cost cutting measure comming for NT R&D. Left hand, meet the right hand...
eyesright 12/5/2012 | 3:05:23 PM
re: Nortel Resells Genband Gateways "Layoffs of who? Scores of top performers just like they do at Cisco?"

The layoff included four corporate officers. They didn't get to participate in the all expense paid planning trip to Maui, replete with first class airline tickets. Bet that went over well with the rank and file.
trzwuip 12/5/2012 | 3:05:23 PM
re: Nortel Resells Genband Gateways FUD:

I spoke to several sources on these items and I did get them 2nd hand, no doubt.

I thought these types of boards are intended to gain confirmation or denial of "rumors" and help our friends at LR find a story!

Maybe you should stay off the "rumor boards" if you don't like rumors... :)
grunt 12/5/2012 | 3:05:23 PM
re: Nortel Resells Genband Gateways I suspect the main reasons Nortel wants to use the G2 and G6 are the exclusive capability of Genband to 'gateway' the legacy lines from the EWSD and DCO. This function does not and presumable will not exist on any Nortel gateway or switch.
I am guessing the pricing is better for the Genband gateways as compared to the MG9k as well.
grunt 12/5/2012 | 3:05:23 PM
re: Nortel Resells Genband Gateways I suspect the main reasons Nortel wants to use the G2 and G6 are the exclusive capability of Genband to 'gateway' the legacy lines from the EWSD and DCO. This function does not and presumable will not exist on any Nortel gateway or switch.
I am guessing the pricing is better for the Genband gateways as compared to the MG9k as well.
Ryan Lawler 12/5/2012 | 3:05:23 PM
re: Nortel Resells Genband Gateways "The layoff included four corporate officers."

Are you talking about four corporate officers being laid off at Genband?

It should probably come as no surprise that the company would lay people off. We reported back in March while the companies were still in talks that less than half of the employees in the Tekelec switching business would keep their jobs:

http://www.lightreading.com/do...

But execs getting cut three months after the deal closed is a bit curious.
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