Smitcoms Selects Nortel Networks to Build Voice over IP Network in St. Maarten
International Long-Distance Provider Expects to Expand Service Offerings, Reduce Costs
PHILLIPSBURG, St. Maarten--(BUSINESS WIRE)--June 14, 2004--
Smitcoms Inc., an international long-distance provider in St. Maarten, Netherlands Antilles, has selected a voice over IP (Internet Protocol) solution from Nortel Networks (NYSE:NT)(TSX:NT) to transition its network to a cost-effective packet infrastructure. The new network will help position Smitcoms to expand its service offerings with new multimedia communications applications and to extend its service area beyond the island of St. Maarten.
Smitcoms plans to use this voice over IP and multimedia infrastructure to offer new hosted voice and data services like long-distance, IP telephony, video conferencing and IP VPN (virtual private network) services. Commercial launch to both residential and business customers is scheduled for October 2004.
"Smitcoms is determined to stay at the leading edge of technology in order to offer our customers the most advanced services available," said Curtis Haynes, managing director, Smitcoms. "We chose Nortel Networks because they have the regional experience, expertise and industry-leading solutions that we can leverage to build a reliable infrastructure -- one that is tailored to our current needs and can grow as we and our customers' requirements grow."
"Nortel Networks voice over IP solutions will position Smitcoms to transform its network to easily reach whole new groups of customers beyond its traditional service area," said Ray Bulengo, Caribbean regional sales director, Nortel Networks. "We will work closely with Smitcoms to implement a high-performance network that can help them provide sophisticated new services and bring increased functionality, mobility and productivity to their customers."
Nortel Networks solution for Smitcoms will include Nortel Networks Multimedia Communication Server 5200, which uses open standards-based software and commercially available hardware to help service providers deliver a rich suite of multimedia and collaboration services that can be seamlessly integrated with existing telephone services. It will also include Nortel Networks Succession Communication Server 2000-Compact superclass softswitches, and Nortel Networks Passport Packet Voice Gateway (PVG) for toll quality voice.
In addition to network equipment and services, Nortel Networks will also supply Smitcoms with professional services ranging from network design to operation and maintenance support.
Nortel Networks has had a presence in the Caribbean since the late 1960s, working with leading regional service providers and corporations to deploy highly advanced communication infrastructures serving residents, businesses and visitors.
SMITCOMS is a company fully owned by the Island Territory of Dutch St. Maarten to provide International Telecommunication services on the Island. The company was officially established on May 10, 2000, achieving the largest subscriber base on the Island and has expanded it services to meet the needs of the Businesses, Visitors and Resident subscribers. For more information, please visit: www.smitcoms-inc.com.
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 or www.nortelnetworks.com/media_center.
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 outcome of Nortel Networks independent review and planned restatement of its previously announced or filed financial results; the impact of the management changes announced on April 28, 2004; the impact of the inability to meet Nortel Networks filing obligations on support facilities and public debt obligations; the sufficiency of Nortel Networks 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; continued reductions in spending by Nortel Networks customers; fluctuations in Nortel Networks operating results and general industry, economic and market conditions and growth rates; the communication by Nortel Networks auditors of the existence of material weaknesses in internal control; Nortel Networks ability to recruit and retain qualified employees; fluctuations in Nortel Networks cash flow, level of outstanding debt and current debt ratings; the use of cash collateral to support Nortel Networks normal course business activities; the dependence on Nortel Networks subsidiaries for funding; the impact of Nortel Networks defined benefit plans and deferred tax assets on results of operations and Nortel Networks cash flows; Nortel Networks dependence on new product development and its ability to predict market demand for particular products; Nortel Networks ability to integrate the operations and technologies of acquired businesses in an effective manner; the impact of rapid technological and market change; the impact 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; changes in regulation of the Internet; the impact of the credit risks of Nortel Networks customers and the impact of customer financing and commitments; stock market volatility generally and as a result of acceleration of the settlement date or early settlement of Nortel Networks purchase contracts; the impact of Nortel Networks supply and outsourcing contracts that contain delivery and installation provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; the future success of Nortel Networks strategic alliances; and the adverse resolution of litigation, investigations, intellectual property disputes and similar matters.
For additional information with respect to certain of these and other factors, see the most recent Form 10 Q/A and Form 10-K/A 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, the Globemark, Business Without Boundaries and Passport are trademarks of Nortel Networks.
Contacts
Nortel Networks
Ferngene Kook, 954-858-7101
email: fkook@nortelnetworks.com
or
Smitcoms
Christopher Bourne, +599-542-9140
email: cbourne@smitcoms.com
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