Nortel and Motorola Ink Broadband VoIP Deal

Nortel Networks Ltd. and Motorola, Inc.s Broadband Communications Sector announced an agreement Monday to team up on developing a VOIP (voice-over-IP) solution to sell to cable operators who want to offer converged communications services of voice, data and cable programming over their broadband lines.

While not exclusive, the alliance will entail coordinated sales and support, including network planning and implementation. Both companies will sell directly to the customer, and each company will brand the product separately, said Elaine Smiles, Nortels senior manager for VOIP marketing.

“By teaming with Motorola, we believe it will ultimately be even simpler and more cost-effective for broadband-cable companies to deploy a VoIP infrastructure that can easily deliver all of todays high-quality telephone services to their subscribers, as well as a full suite of new IP-based services,” said Sue Spradley, president of carrier VOIP at Nortel Networks in a prepared statement.

Both companies are currently working together to build a VOIP network for ish, a German telecommunications company, which offers voice and data services to its subscribers.

While some cable operators are offering voice services now, said Smiles, “what you will be seeing in this year is the delivery of networks which are end-to-end IP and packet-based.”

Smiles said Nortel has heard from cable operators interested in marketing to and deploying converged services in the enterprise. Cable operators will now be able to provide simpler, integrated “Private Branch Exchanges” or PBXs, resident in the enterprise, to integrate voice and data, said Smiles. “It would be only one set of paths from the PBX out into the network. If the carrier who is hosting a Voice-over-IP PBX has a Voice over IP network, then there is a smooth integration and a lower cost curve in running one network from end to end.”

Financial details of the agreement were not disclosed.