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Cable One Selects Nortel as Strategic
Solutions Provider for Cable VoIP Deployment
Planned Rollout of Cable Telephony Service
Will Complete Triple Play Services Throughout Midwestern,
Southern, Western United States
PHOENIX - August 10, 2005 - Cable One, a leading rural market
cable operator in the United States, has selected Nortel* [NYSE/TSX:
NT] as its primary VoIP technology and professional services
provider. Cable One plans to launch full-featured primary line
telephony services in up to 45 markets throughout the midwestern,
southern and western United States.
“Adding VoIP to the Cable One network is a major initiative,”
said Steve Fox, vice president, Digital Services and Technology,
Cable One. “We needed a vendor with extensive deployment,
integration and operations experience in the cable market as
well as a PacketCable*-qualified solution that delivers the
unparalleled quality and reliability we demand for our
customers. We are confident that Nortel’s proven technology,
professional services and ability to integrate multi-vendor
networks will allow us meet our initial January 2006 goal of
rolling out cable telephony service.”
Cable One, which has more than 700,000 subscribers, has signed
an agreement with Nortel to provide a complete, end-to-end VoIP
solution incorporating Nortel technology and professional
services. Nortel’s efficient VoIP architecture will allow Cable
One to consolidate switching resources to minimize capital,
operating and engineering costs commonly associated with rural
market network expansion. Cable One’s network will feature
PacketCable-qualified Nortel Communication Server (CS)
2000-Compact softswitches.
Cable One will use Nortel Global Services for planning, program
management, multi-vendor integration and deployment of the VoIP
solution to ensure a smooth end-to-end network implementation.
“Nortel has generated significant momentum in the global cable
market by helping cable providers offer new voice, video and
data services easily and cost effectively,” said Dan Mondor,
general manager, MSO Solutions, Nortel. “One of Nortel’s key
strategies in making this possible is integrating products from
companies like IP Unity and Sigma Systems into our service
offerings to give providers a complete cable telephony solution
that addresses their current needs and grows with their
businesses.”
Nortel will provide Cable One with IP Unity's
PacketCable-qualified Mereon* 6000 Media Server and Mereon
Unified Messaging application including voice mail. Cable One
will also use Sigma’s Service Management Platform and VoIP
Service Package for end-to-end integration of billing solutions,
softswitch operations, voice mail, and Cable One’s competitive
local exchange carrier (CLEC) partners. Both the IP Unity and
Sigma products have gone through systems integration with
Nortel’s Cable VoIP solution to reduce deployment costs.
Cable One has a long-standing relationship with Nortel and is
using a Nortel IP converged solution throughout its corporate
and regional offices for seamless, scalable, real-time business
communications.
"Nortel has been a valuable partner in building our internal
voice and data communications network as well as in helping us
strengthen our services for subscribers," Fox said. "IP
telephony is a key component of our corporate network strategy,
and implementing these solutions from Nortel allows us to
capitalize on prior investments as we move forward into IP
telephony technology."
Nortel ranked number one in the global markets for service
provider softswitches and gateways for the entire year of 2004
and for the first quarter of 2005, according to Synergy Research
Group.
The majority of cable operators around the world who have chosen
to build their own VoIP networks have chosen Nortel, including
Adelphia, Cable Onda, Charter Communications, Cox
Communications, Dacom, Intercable, ish, Kabel BW, Rogers Cable,
Shaw Cablesystems, TeleCable and Telenet.
About Cable One
Cable One, the cable division of The Washington Post Company [NYSE:WPO],
operates 52 cable systems serving 715,000 subscribers in 19
states.
About Nortel
Nortel is a recognized leader in delivering communications
capabilities that enhance the human experience, ignite and power
global commerce, and secure and protect the world’s most
critical information. Serving both service provider and
enterprise customers, Nortel delivers innovative technology
solutions encompassing end-to-end broadband, Voice over IP,
multimedia services and applications, and wireless broadband
designed to help people solve the world’s greatest challenges.
Nortel does business in more than 150 countries. For more
information, visit Nortel on the Web at www.nortel.com. For the
latest Nortel news, visit www.nortel.com/news.
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
regulatory and criminal investigations and civil litigation
actions related to Nortel’s restatements and the impact any
resulting legal judgments, settlements, penalties and expenses
could have on Nortel’s results of operations, financial
condition and liquidity, and any related potential dilution of
Nortel’s common shares; the findings of Nortel’s independent
review and implementation of recommended remedial measures; the
outcome of the independent review with respect to revenues for
specific identified transactions, which review will have a
particular emphasis on the underlying conduct that led to the
initial recognition of these revenues; the restatement or
revisions of Nortel’s previously announced or filed financial
results and resulting negative publicity; the existence of
material weaknesses in Nortel’s internal control over financial
reporting and the conclusion of Nortel’s management and
independent auditor that Nortel’s internal control over
financial reporting is ineffective, which could continue to
impact Nortel’s ability to report its results of operations and
financial condition accurately and in a timely manner; the
impact of Nortel’s and NNL’s failure to timely file their
financial statements and related periodic reports, including
Nortel’s inability to access its shelf registration statement
filed with the United States Securities and Exchange Commission
(SEC); ongoing SEC reviews, which may result in changes to
Nortel’s and NNL’s public filings; the impact of management
changes, including the termination for cause of Nortel’s former
CEO, CFO and Controller in April 2004; the sufficiency of
Nortel’s restructuring activities, including the work plan
announced on August 19, 2004 as updated on September 30, 2004
and December 14, 2004, including the potential for higher actual
costs to be incurred in connection with restructuring actions
compared to the estimated costs of such actions; cautious or
reduced spending by Nortel’s customers; increased consolidation
among Nortel’s customers and the loss of customers in certain
markets; fluctuations in Nortel’s operating results and general
industry, economic and market conditions and growth rates;
fluctuations in Nortel’s cash flow, level of outstanding debt
and current debt ratings; Nortel’s monitoring of the capital
markets for opportunities to improve its capital structure and
financial flexibility; Nortel’s ability to recruit and retain
qualified employees; the use of cash collateral to support
Nortel’s normal course business activities; the dependence on
Nortel’s subsidiaries for funding; the impact of Nortel’s
defined benefit plans and deferred tax assets on results of
operations and Nortel’s cash flow; the adverse resolution of
class actions, litigation in the ordinary course of business,
intellectual property disputes and similar matters; Nortel’s
dependence on new product development and its ability to predict
market demand for particular products; Nortel’s 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 and consolidation in the telecommunications
industry; changes in regulation of the Internet; the impact of
the credit risks of Nortel’s customers and the impact of
customer financing and commitments; stock market volatility
generally and as a result of acceleration of the settlement date
of Nortel’s forward purchase contracts; negative developments
associated with Nortel’s supply contracts and contract
manufacturing agreements, including as a result of using a sole
supplier for a key component of certain optical networks
solutions; the impact of Nortel’s 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; any undetected product defects,
errors or failures; and the future success of Nortel’s strategic
alliances. For additional information with respect to certain of
these and other factors, see the most recent Annual Report on
Form 10-K and Quarterly Report on Form 10-Q filed by Nortel with
the SEC. Unless otherwise required by applicable securities
laws, Nortel 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, the Nortel logo and the Globemark are
trademarks of Nortel Networks. PacketCable is a trademark of
Cable Television Laboratories, Inc. Mereon is a trademark of IP
Unity.
Use of the terms “partner” and “partnership”
does not imply a legal partnership between Nortel and any other
party.
Contact:
Christie Blake
(978) 288-8439
christbl@nortel.com
For Sigma Systems
John Sacke
416.493.5723 ext. 201
johns@sackepr.com
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