A recently published report by independent American technology researcher Yankee Group identifies Nortel Networks as having an edge over its major international competitors in terms of strategic positioning for the provision of Internet Protocol (IP)-driven voice and data network convergence.
In the report, entitled "Positioning for an IP Mobility World - Part 2: Infrastructure Vendor Strategies", the Yankee Group ranks Nortel Networks ahead of other major international players such as Ericsson, Lucent, Nokia and Motorola/Cisco.
Yankee Group says it believes Nortel Networks has the edge as "its product strategy has been announced, and not only broadly covers the different air interface markets but also both the service provider and enterprise markets".
With the industry identifying data via cellular/PCS networks as both a future revenue generator and a change in the network architecture as a cost-containment opportunity, infrastructure vendors are increasingly moving to offer a network vision that meets these two long-term carrier objectives, the report says.
"The response of the traditional cellular/PCS equipment vendor community has been to seek out IP expertise through either internal product development efforts or mergers and acquisitions and the creation of refined product offerings."
The Yankee Group ranked the major cellular/PCS equipment providers across a multitude of factors ranging from their participation in various wireless equipment markets to the growing expertise in data communications and coverage of enterprise markets.
Nortel Networks` strategy is to change the network architecture paradigm by achieving the following:
The migration to a single network for voice and data communications and increased network utilisation, which drives a reduction of network elements relative to a switched network architecture
A reduction of facilities costs through use of Unified Networks architectures and distributed access, transport, and switching functions
Reduction of OAM&P costs through consolidation of service and management functions across previously disparate communications networks. The harnessing of Moore`s Law, as service development and control functions are migrated to computer platforms.
Commenting on the strategy, Yankee Group says: "We believe that given the breadth of Nortel Networks, the company is positioned to execute on its voice/data and cost-containment offerings."
In addition to the Bay and Nortel Networks Passport products, Nortel Networks focuses on bringing forth e-mobility services, a suite of advanced network services that take advantage of a distributed IP architecture.
"Nortel Networks has announced 3G trials with BT and the North American GSM Alliance, and is integrating its platform into the BT trial.
The particular strengths that Nortel Networks brings are the following:
Breadth of Cellular/PCS Product Portfolio. Given strong market shares in both North America and Europe, the company is competitive across all three 2G air interfaces, and has realigned its business units in order to bring commonality among the air interface groups as high as possible. For instance, Nortel Networks` latest base station designs are publicly positioned as 3G-ready, and possess design elements that may well lead to cross-air interface commonalities in the future, depending on how the 3G standards evolve.
Breadth of Data Networking Product Portfolio. Given our expectation that both ATM and IP will be used in next-generation wireless networks, we believe that Nortel Networks has expertise in both technology areas to be able to supply end-to-end solutions.
Coverage of Service Provider and Enterprise Markets. Nortel Networks has extensive coverage of the cellular/PCS service provider markets, and via the Bay acquisition strongly covers the enterprise markets. We believe that going forward wireless access will increasingly be brought into the enterprise markets. Such enterprise relationships could be excellent `pull` relationships, which help service providers choose their preferred network equipment suppliers."
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