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Nortel backs pan-European regulation

21 сентября 2007

Canadian equipment provider bets on WiMAX, LTE; doesn't rule out future acquisitions, but dismisses talk of mega-merger. Nortel Networks' EMEA president Darryl Edwards this week called for the creation of a pan-European telecoms regulator. "Not having a regulator at EU level is limiting the development of hyperconnectivity," Edwards told Total Telecom on Wednesday.

"The Chinese market is huge and growing exponentially. When I go there I don't have to deal with 27 different regulators, why do I need to do that in Europe?" he said.

He added that having no Europewide regulator "impedes competition," and said the lack of consensus between different markets adds to the cost of doing business in the continent.

He also said that some European incumbents are being "over-protective" when it comes to providing network access to their rivals.

EU commissioner Viviane Reding has made no secret of her intention to create a pan-European regulator, a move that met with resistance from Europe's watchdogs, which responded by agreeing to harmonise their rules and act independently from their governments.

Edwards' comments were made the same day Nortel announced three new customer wins, including two network deals to provide connectivity across Europe and Asia.

Verizon Business is deploying Nortel metro Ethernet equipment to provide high-speed connectivity for its customers in 17 European countries as well as four countries in Asia.

Nortel also announced the completion of a 40 Gbps-ready optical network to provide connectivity between Stockholm and Helsinki for a Russian international carrier RASCOM.

And U.S.-based regional triple-play provider Midcontinent is also going to deploy Nortel optical metro Ethernet technology as it looks to ramp up its high-bandwidth services, including video-on-demand (VOD).

"We've undergone an interesting transition in Europe, a lot of that is to do with us leaving the UMTS market…[and] we've seen encouraging growth," said Nortel CTO John Roese.

He told Total Telecom that Nortel has moved on from the financial uncertainty that surrounded its well-documented accounting scandal, and followed through on plans to focus on WiMAX, carrier Ethernet and enterprise transformation.
"We're placing a bet on WiMAX and LTE: there will be a 4G," he said.

Furthermore, Roese said acquisitions are "not out of the question," for the Canadian equipment vendor.

"We've spent the last two years sorting out our various 'challenges'…and we were unable to grow the company inorganically," said Roese. "We're back to being a normal company, so we can make acquisitions now."

However, he reiterated that Nortel is not planning to merge with another large vendor.

"We don't believe mergers like Alcatel-Lucent and Nokia Siemens Networks would be beneficial to Nortel, you end up focussing on the inner workings of the business…we wouldn't want to inflict that on ourselves or our customers," he said.

Источник: Total Telecom

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