Extolling them as “wings of light,” Nortel Networks hopes to illumine the wireless Internet space with four new initiatives. Basking in a 55-percent third-quarter growth, the Internet and communications company identifies the four-pronged blitz as optical infrastructure, wireless access, Internet Protocol services to create the next-generation wireless Internet delivery network and wireless Internet in-vehicle solution.
“Our focus is on high-performance interoperability with the Internet and how to bring that together with access technology,” said Mark Tharby, Nortel’s vice president of wireless Internet solutions marketing.
Its optical initiative entails optimizing wireless infrastructure by converting legacy leased-line backbone networks to optical ring architecture. The idea, said Tharby, is to work with operators to significantly reduce operating expenses as well as enable bandwidth for data applications.
The global program will support Nortel’s strategy to make inroads into the Universal Mobile Telecommunications System in Europe and Asia and to serve both CDMA and GSM/GPRS business in the United States. The company will pursue its wireless access dreams by working with industry leading application partners such as Hewlett-Packard Co. to transform wireline applications to the wireless Internet.
“This is to support business transformation in the wireless Internet marketplace,” said Tharby.
Nortel also partnered with Info-Space, a provider of cross-platform merchant and consumer infrastructure services, to provide combined infrastructure and services solutions that will allow carriers worldwide to roll out branded data and transaction services over existing and next-generation wireless networks. Vodafone Group plc, Verizon, SBC and AT&T use the InfoSpace platform.
“Carriers preparing for next-generation networks and applications can look to Nortel Networks and InfoSpace to provide a comprehensive wireless Internet platform-one that is fast and flexible, enables new ways to conduct commerce, access information and communicate and offers a better overall user experience,” said Anil Khatod, Nortel’s president of global Internet solutions.
Nortel is pursuing its IP services with contracts to equip three major European firms to the tune of $1.8 billion. They are BT Cellnet in the United Kingdom for $280 million and Spain’s AirTel and Xfera for more than $1 billion.
“The networks will be based on Nortel wireless Internet architecture focused on new applications,” said Tharby.
Rather than focus on voice service, it will cover messaging, entertainment and commerce.
Nortel also signed a wireless Internet in-vehicle deal with Egery, a joint-venture company established in September by PSA Peogeot and Vivendi to provide multimedia applications and services for European motorists.
The telematics technology-which is expected to take off in first-quarter 2001-will include m-commerce, location-based services, safety and security, mobility and route guidance and in-car entertainment like m-shopping, games, interactive radio, music and video on demand. The product was unveiled at the In-Car Tech trade show Dec. 6 in Paris.
“We see tremendous potential for in-vehicle applications with the introduction of high-speed GPRS and UMTS networks,” said Doug Lowther, Nortel’s vice president for wireless Internet strategic marketing.
Tharby hopes these initiatives will leapfrog his company’s market share from its present 10 percent to 20 percent in a few years. Short of implying that the projects will give Nortel a virtual monopoly, he said “partnerships will want to compete with us.”
He said no other vendor can do what Nortel is embarking on.
“The classical radio vendors are not known for their Internet capabilities and the Internet vendors are not known for their wireless capability,” he said. “This positions us to dominate the wireless Internet marketplace.”
