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Nortel to Provide Guests at New Caribbean Luxury Resort With Enhanced Communications Services


IP Solutions to Offer Advanced Messaging and Mobility Capabilities

JANUARY 08, 2007 - NASSAU, Bahamas - Kerzner International Limited, a leading international developer and operator of destination resorts, casinos and luxury hotels, has selected Nortel* [NYSE/TSX: NT] hospitality solutions to enhance guest services at its new luxury resort, The Cove Atlantis, opening March 2007 in the Bahamas.

The Cove - a new addition to the existing Atlantis resorts - will be equipped with Nortel’s hospitality messaging system, providing guests and staff easy access to advanced communications features such as instant messaging concerning mini-bar management, housekeeping/room status service and automatic wake-up at the touch of a button. Nortel will also supply a minimum of two IP Phones for each of the 600 suites to serve as gateways to information about tours, concerts, events within Atlantis, as well as local information about the Bahamas.

The complete communications solution for The Cove includes Nortel IP phones, mobility, VoIP, unified messaging and contact center solutions. The deployment will be an expansion of Kerzner’s current Nortel IP network installed at other resorts and towers on Paradise Island including One&Only Ocean Club and within Atlantis itself at Beach, Royal and Coral Towers.

“Kerzner International is known worldwide for providing excellence in service for our guests, including advanced technological solutions to help make their stay more comfortable,” said Rick Garvin, chief information officer, Kerzner International. “The Cove will open with superb service levels and through our collaboration with Nortel, those high service levels will include streamlining communications for our guests, allowing us to promote additional services such as event and tour booking and real-time updates on guest room housekeeping status. Nortel’s solutions are also helping to lower operational costs by increasing staff productivity with the ability to stay in touch on work assignments through mobile communications access wherever they are in the resort.”

“When completed, The Cove Atlantis will truly be one of the most high-tech resorts in the Caribbean with the latest communications technology specifically designed to support the resort’s business objectives for delivering an exemplary guest experience,” said Norberto Milan, vice president, Enterprise Networks, Nortel Caribbean and Latin America. “Nortel’s care in blending the new communications capabilities at The Cove with the existing Atlantis resort ensures the same level of personalization and service excellence is maintained through the entire complex.”

Additionally, The Cove will implement Nortel Contact Center solutions at an in-house contact center, consisting of 40 to 45 Atlantis-employed agents, supporting guests’ needs for booking restaurants, tours or casino tables. Nortel’s comprehensive solution ensures guests receive real-time responses through a variety of communication vehicles such as IP telephony while lowering total cost of ownership and creating a simplified management environment.

A ’Personal Butler’ service for guests staying at the Cove’s high-end, luxury suites - Penthouse, Presidential, Sapphire or Azure Suites - will be able to message staff through mobile handsets to receive real-time service regardless of location within the resort.

The Nortel solution for The Cove includes Nortel CallPilot Unified Messaging, Nortel Contact Center, Nortel Mobility Solution with WLAN Handsets, Nortel Communication Server 1000, Nortel Hospitality Messaging Server 400, Nortel Application Gateway 1000 with Guest Services, Nortel IP Phone 2007 and IP Phone 1100 Series.

The Cove is Kerzner’s new 600 room all-suite resort within the world of Atlantis featuring spectacular designs by acclaimed interior architects Jeffrey Beers and David Rockwell, the opening of Bobby Flay’s Mesa Grill - the first outside the United States - unprecedented services and amenities, private all-adult and family pools, lavish cabanas and breathtaking views of the ocean at every turn. Perched above two of the most magnificent beaches in the world, The Cove sits on a peninsula surrounded by lush landscaping, fresh water pools filled with lilies, colorful fish and waterfalls.

About Kerzner International

Kerzner International Limited, through its subsidiaries, is a leading international developer and operator of destination resorts, casinos and luxury hotels. The Company’s flagship brand is Atlantis, which includes Atlantis, Paradise Island, the 171-acre, 2,917-room, ocean-themed destination resort is located on Paradise Island, The Bahamas. This unique property features three interconnected hotel towers and The Cove, a luxury all-suite resort built around a 97-acre waterscape with over 20 million gallons of fresh and saltwater lagoons, pools and habitats, the world’s largest open-air marine habitat and some of the most beautiful beaches in the world. A 495-unit Condotel, developed in partnership with Turnberry Associates, is under construction. The Company is extending its Atlantis brand globally with the development of Atlantis, The Palm, Dubai, an approximately 1,500-room, water-themed resort expected to open in late 2008, currently being constructed on The Palm, Jumeirah, a multi-billion dollar leisure and residential development in Dubai. In its luxury resort hotel business, the Company manages ten resort hotels primarily under the One&Only brand. The resorts, featuring some of the top-rated properties in the world, are located in The Bahamas, Mexico, Mauritius, the Maldives and Dubai. An additional One&Only property is currently in the planning stages in South Africa.

For further information about The Cove telephone 877-COVE-VIP. For reservations, call your travel agent or email

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. 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.

Certain statements in this press release may contain words such as “could”, “expects”, “may”, “anticipates”, “believes”, “intends”, “estimates”, “targets”, “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 approval of its proposed class action settlement; 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; the sufficiency of recently announced restructuring actions, including the potential for higher actual costs to be incurred in connection with these restructuring actions compared to the estimated costs of such actions and the ability to achieve the targeted cost savings and reductions of Nortel’s unfunded pension liability deficit; 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, including completion of the sale of its UMTS access business to Alcatel-Lucent; 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 support 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 support facility; 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 the 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 Form10-K/A, Quarterly Reports 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.

* Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks.


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