Word: nortel
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...competition includes such telephone-equipment makers as Avaya, Citel Technologies, Mitel Networks, NEC, Nortel Networks and Siemens, which are all pitching products to move customers from traditional phone systems to a converged voice-and-data network. On the other side, network-equipment makers like Cisco and 3Com are suggesting that companies dump their phone providers entirely and go with IP-enabled systems and phones. IP start-ups like Pingtel, Shoreline Communications, Sylantro, Veraz Networks and Vertical Networks are pushing both sides to innovate...
Despite obvious benefits, many businesses are reluctant to throw away their current phone systems, especially since they work just fine. Companies like Avaya, Citel, Mitel and Nortel offer equipment running "converged systems," which let companies operate traditional phone systems alongside an IP network. "You only need to migrate those people who actually get some benefit from having a new device on the desktop," says Donald Peterson, chairman and CEO of Avaya. "For people who sit at the guard station at the back door, you can leave the existing devices there...
...structure doesn't change. From a financial perspective, the model is unsustainable." As long as they are subsidizing their rivals, the Bells insist, there's no reason for them to upgrade their networks, which puts a further drain on the depressed equipment sector, including companies like Lucent Technologies and Nortel Networks...
...champion with a gold-plated international Rolodex: Michael Feinstein, a senior principal at Atlas Venture in Boston. Before becoming a venture capitalist, Feinstein had been vice president of marketing in charge of global sales at New Oak Communications, a maker of Internet security devices that is now part of Nortel Networks. Through his contacts, Feinstein was able to entice the business-development director of NetOne to visit WaveSmith at its Acton, Mass., headquarters for a demonstration of its new multiservice switch. The product, which transmits data, voice and video in a carrier's central office, piqued the interest...
...slack left after the telecom bust. APPLIED DIGITAL SOLUTIONS' new VeriChip, for example, is injected under your skin and when scanned--say, in the emergency room--gives doctors a complete medical history. The semiconductor recovery won't be complete without renewed demand from traditional users such as CISCO and NORTEL. But if they kick in later this year, it could be a great time for the industry...