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March 6, 2002

Analysis Shows Nortel Networks as Leader in Converged Voice/Data for Enterprises

Nortel Networks* is a leader in converged voice/data solutions for enterprises in North America for the second year running, according to a recently published research note from Gartner. In its second “Magic Quadrant” analysis of converged voice/data for enterprises in North America (www.gartner.com/reprints/nortel/104600.html**), Gartner cited Nortel Networks as the leader in “Small Line” solutions (100 lines or less). Nortel Networks was also cited as a leader in solutions for more than 100 lines.

“The industry is moving toward voice/data convergence,” said Kathleen Simpson, senior analyst, Gartner. “Certainly, the traditional voice vendors, with offerings that transcend circuit switch through to IP telephony are poised to battle it out. The sweet spot for IP telephony is still in small single site and small remote branch offices. However, we did see movement in terms of growth in the average line size of systems.”

Gartner’s analysis addressed how convergence of IT and telecommunications will influence enterprise voice and call processing strategies during the next five years. Measurement criteria included “Ability to Execute” with a focus on “Product, Distribution, Management and Financial Viability,” and “Completeness of Vision” with emphasis on “Technology, Market Leadership/Understanding, Communications and Strategic Positioning.”

“Whether customers want to evolve their existing networks via IP-enabled or deploy pure IP, have 25 lines or 25,000, they can take advantage of our leadership position in end-to-end solutions spanning both carriers and enterprises,” said Christine Durham, vice president, Enterprise Channel Marketing, Nortel Networks. “Nortel Networks is uniquely positioned in the converged market space because we are able to address customers’ broad range of needs and differing rates of adoption, regardless of size.”

Nortel Networks was also identified as the market share leader in combined shipments for 2000 in Gartner’s latest report, “World Wide PBX/KTS and PCX Market Share and Forecast, 2001.” Gartner defines PCX as “a customer-premises-based communications that employs a high-bandwidth backbone to connect switching nodes and applications.” This was a cumulative summary of Gartner’s individual geographical reports released in 2001.

For more information, contact Dana Hughens, 615-432-4636, dhughens@nortel.com.

The Magic Quadrant is copyrighted February 25, 2002 by Gartner, Inc. and is reused with permission. Gartner’s permission to print its Magic Quadrant should not be deemed to be an endorsement of any company or product depicted in the quadrant. The Magic Quadrant is Gartner’s opinion and is an analytical representation of a marketplace at and for a specific time period. It measures vendors against Gartner-defined criteria for a marketplace. The positioning of vendors within a Magic Quadrant is based on the complex interplay of many factors. Well-informed vendor selection decisions should rely on more than a Magic Quadrant. Gartner research is intended to be one of many information sources and the reader should not rely solely on the Magic Quadrant for decision-making. Gartner expressly disclaims all warranties, express or implied of fitness of this research for a particular purpose.

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