Nortel Networks and Bell Atlantic Announce Major Agreements for Unified Networks Solution

Nortel Networks and Bell Atlantic have signed two agreements, worth approximately US$ 1 billion, for a unified networks solution. The deals will provide Bell Atlantic with next-generation digital loop carrier equipment, supporting their high-speed access networks. These agreements reflect a strong business alliance between the two companies, with Nortel Networks as a major supplier of networking products and services.

Key Takeaways:

• The agreements have a potential value of approximately US$ 1 billion and will be delivered over the next three to five years.
• Nortel Networks will supply approximately 50 percent of the purchases Bell Atlantic expects to make over the next five years for next-generation digital loop carrier equipment.
• The access agreement, valued at approximately US$ 600 million, awards Nortel Networks 50 percent of the purchases for next-generation digital loop carrier equipment.
• The Universal Edge 9000 (UE9000) is the cornerstone of Nortel Networks' access equipment offering, providing a smooth evolution path to mission-critical IP networks.
• Bell Atlantic is already deploying Nortel Networks solutions, including AccessNode to serve its top-tier customers in Manhattan.
• The agreements enable Bell Atlantic to take advantage of Nortel Networks' newest technology as it is developed.

Statistics:

• US$ 1 billion: Potential value of the two agreements
• 50 percent: Percentage of purchases Bell Atlantic expects to make over the next five years that will be supplied by Nortel Networks
• US$ 600 million: Estimated potential value of the access agreement
• 5 years: Timeframe for the two agreements
• 23 countries: Number of countries where Bell Atlantic companies operate and invest

Sources:

• "Nortel Networks and Bell Atlantic Sign Agreements" (PRNewswire, April 8)
• Bell Atlantic Full-Year 1998 Revenue Release
• Nortel Networks Annual Reports (1998 and 1999)