Nortel Picks Verizon

BASKING RIDGE, N.J. -- To help achieve its objectives of reducing IT budgets and improving operational efficiencies, Nortel has selected Verizon IP Trunking service with Burstable Enterprise Shared Trunks (BEST), which will enable Nortel to consolidate its U.S. corporate voice infrastructure.

Under a new three-year agreement, Nortel will evolve its traditional voice system to Verizon IP Trunking VoIP service, which is based on SIP (Session Initiation Protocol). In addition, Verizon Business will manage Nortel's existing Verizon Private IP network, enabling Nortel to benefit from expanded managed network service capabilities and industry-leading service level agreements.

With Verizon IP Trunking service, Nortel will move from a distributed voice architecture to one that is simplified, centralized and more cost-effective. The BEST feature, which Verizon Business introduced earlier this year, is an on-demand networking capability that enables customers to use idle trunk capacity from one or more locations to dynamically accommodate increases in traffic at other locations, providing more design flexibility and reducing the total number of trunks required across the enterprise. Two key Verizon IP Trunking features that enable the Nortel solution include DID (direct inward dial) transport to a Nortel central access point, and E911 support.

"Consolidating our voice infrastructure to VoIP will provide network efficiencies that serve to increase productivity while driving costs lower," said Steve Bandrowczak, chief information officer for Nortel. "In the initial phase of deployment alone, we anticipate significant operational savings with a return on investment in a little over a year. The endgame is that it allows us to focus on our business, which is serving our customers."

Nortel Networks Ltd.

Verizon Communications Inc. (NYSE: VZ)