Suddenlink to Provide Cable VoIP Services Using Nortel Technology
Will Use Nortel Global Services for Network Design, Integration, Maintenance
JUNE 21, 2006, DENVER - Suddenlink Communications, one of the 10 largest cable operators in the United States, will use a VoIP solution from Nortel* [NYSE/TSX: NT] to provide a suite of telephone and multimedia services to its customers. This solution will include network design, integration, management and maintenance services from the Nortel Global Services portfolio.
Suddenlink (formerly Cebridge Connections) is preparing to expand its telephony services with the acquisition of cable systems from Cox Communications (closed on May 5) and Charter Communications (expected to close in July). Together, those acquisitions will more than triple Suddenlink’s size. The new network will provide VoIP-based telephony services to Suddenlink’s national customer base from California to North Carolina, and will include conversion of approximately 30,000 telephony subscribers acquired from Cox.
“With Suddenlink’s pending integration of several networks, it is critical that our new VoIP network integrate seamlessly with equipment from multiple vendors,” said Terry Cordova, senior vice president, Engineering, Suddenlink. “Nortel’s services and expertise, the proven interoperability of its VoIP solution and its IMS roadmap give us confidence that they can uniquely help our company launch and maintain a new VoIP service.”
“Nortel has earned a reputation as a leader in simplifying the deployment of VoIP services for our cable customers,” said Tom Buttermore, vice president and general manager, Global Cable Solutions, Nortel. “Our track record for producing quality products and contributing high-caliber expertise has made Nortel a primary choice for companies like Suddenlink looking to introduce advanced telephony to both residential and business markets.”
Nortel will act as the prime integrator and lead architect for the VoIP network, bringing together solutions from multiple vendors. In addition to these network design and integration services, Nortel will provide on-site resources to manage the network for one year, and network maintenance including technical support, repair and software services.
The deployment is expected to begin later this year and be completed by the end of 2007. Suddenlink will be using PacketCable**-qualified Nortel Communication Server 2000-Compacts (CS 2000-Compact) as the exclusive softswitch on their Suddenlink backbone. The CS 2000-Compact uses industry standard SIP protocol for cost effective interconnect to the public phone network and Nortel will also provide Suddenlink with IP Unity’s PacketCable based Mereon* 6000 Media Server** and Mereon Unified Messaging application**, delivering voice mail features for its business and residential subscriber services. IP Unity is a messaging market leader in the cable operator segment.
Nortel ranked number one globally in carrier IP telephony for Q1 2006 and full year 2005, according to recent reports from Synergy Research Group and Dell’Oro Group. Nortel’s cable solutions have been selected by leading operators around the world and span video and video on-demand transport, voice and multimedia communications, high-speed data services, managed network services for business customers, and next generation access.
Nortel’s Global Services include a full range of integrated services for design, deployment, management and maintenance of end-to-end multi-vendor network solutions, including seamless migration to next generation technologies.
Already a top-10 U.S. operator of cable broadband systems, Suddenlink Communications is on track to serve approximately 1.3 million customers by July 2006. The company was established as Cebridge Connections in 2003, after taking over the operations of Classic Cable and Kingwood Cable. Since then, the company has assumed responsibility for cable systems previously owned by Alliance, Tele-Media, Thompson, USA Media, and Cox. Along the way, Suddenlink’s management team has invested tens of millions of dollars to upgrade acquired facilities, bringing advanced services to a long list of cities and towns, often for the first time in the history of those communities.
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. Our next-generation technologies, for both service providers and enterprises, span access and core networks, support multimedia and business-critical applications, and help eliminate today’s barriers to efficiency, speed and performance by simplifying networks and connecting people with information. 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 statements in this press release may contain words such as “could”, “expects”, “may”, “anticipates”, “believes”, “intends”, “estimates”, “plans”, “envisions”, “seeks” and other similar language and are considered forward-looking statements or information under applicable securities legislation. These statements are based on Nortel’s current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which Nortel operates. These statements are subject to important assumptions, risks and uncertainties, which are difficult to predict and the actual outcome may be materially different. Further, actual results or events could differ materially from those contemplated in forward-looking statements as a result of the following (i) risks and uncertainties relating to Nortel’s restatements and related matters including: Nortel’s most recent restatement and two previous restatements of its financial statements and related events; the negative impact on Nortel and NNL of their most recent restatement and delay in filing their financial statements and related periodic reports; legal judgments, fines, penalties or settlements, or any substantial regulatory fines or other penalties or sanctions, related to the ongoing regulatory and criminal investigations of Nortel in the U.S. and Canada; any significant pending civil litigation actions not encompassed by Nortel’s proposed class action settlement; any substantial cash payment and/or significant dilution of Nortel’s existing equity positions resulting from the finalization and approval of its proposed class action settlement, or if such proposed class action settlement is not finalized, any larger settlements or awards of damages in respect of such class actions; any unsuccessful remediation of Nortel’s material weaknesses in internal control over financial reporting resulting in an inability to report Nortel’s results of operations and financial condition accurately and in a timely manner; the time required to implement Nortel’s remedial measures; Nortel’s inability to access, in its current form, its shelf registration filed with the United States Securities and Exchange Commission (SEC), and Nortel’s below investment grade credit rating and any further adverse effect on its credit rating due to Nortel’s restatements of its financial statements; any adverse affect on Nortel’s business and market price of its publicly traded securities arising from continuing negative publicity related to Nortel’s restatements; Nortel’s potential inability to attract or retain the personnel necessary to achieve its business objectives; any breach by Nortel of the continued listing requirements of the NYSE or TSX causing the NYSE and/or the TSX to commence suspension or delisting procedures; (ii) risks and uncertainties relating to Nortel’s business including: yearly and quarterly fluctuations of Nortel’s operating results; reduced demand and pricing pressures for its products due to global economic conditions, significant competition, competitive pricing practice, cautious capital spending by customers, increased industry consolidation, rapidly changing technologies, evolving industry standards, frequent new product introductions and short product life cycles, and other trends and industry characteristics affecting the telecommunications industry; any material and adverse affects on Nortel’s performance if its expectations regarding market demand for particular products prove to be wrong or because of certain barriers in its efforts to expand internationally; any reduction in Nortel’s operating results and any related volatility in the market price of its publicly traded securities arising from any decline in its gross margin, or fluctuations in foreign currency exchange rates; any negative developments associated with Nortel’s supply contract and contract manufacturing agreements including as a result of using a sole supplier for key optical networking solutions components, and any defects or errors in Nortel’s current or planned products; any negative impact to Nortel of its failure to achieve its business transformation objectives; additional valuation allowances for all or a portion of its deferred tax assets; Nortel’s failure to protect its intellectual property rights, or any adverse judgments or settlements arising out of disputes regarding intellectual property; changes in regulation of the Internet and/or other aspects of the industry; Nortel’s failure to successfully operate or integrate its strategic acquisitions, or failure to consummate or succeed with its strategic alliances; any negative effect of Nortel’s failure to evolve adequately its financial and managerial control and reporting systems and processes, manage and grow its business, or create an effective risk management strategy; and (iii) risks and uncertainties relating to Nortel’s liquidity, financing arrangements and capital including: the impact of Nortel’s most recent restatement and two previous restatements of its financial statements; any inability of Nortel to manage cash flow fluctuations to fund working capital requirements or achieve its business objectives in a timely manner or obtain additional sources of funding; high levels of debt, limitations on Nortel capitalizing on business opportunities because of credit facility covenants, or on obtaining additional secured debt pursuant to the provisions of indentures governing certain of Nortel’s public debt issues and the provisions of its credit facilities; any increase of restricted cash requirements for Nortel if it is unable to secure alternative support for obligations arising from certain normal course business activities, or any inability of Nortel’s subsidiaries to provide it with sufficient funding; any negative effect to Nortel of the need to make larger defined benefit plans contributions in the future or exposure to customer credit risks or inability of customers to fulfill payment obligations under customer financing arrangements; any negative impact on Nortel’s ability to make future acquisitions, raise capital, issue debt and retain employees arising from stock price volatility and further declines in the market price of Nortel’s publicly traded securities, or any future share consolidation resulting in a lower total market capitalization or adverse effect on the liquidity of Nortel’s common shares. For additional information with respect to certain of these and other factors, see Nortel’s Annual Report on Form 10-K/A, Quarterly Report on Form 10-Q and other securities filings 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.
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