Nortel’s Dutch Treat….Not!

While Nortel was talking up a number of European contract wins earlier this week, a key development that received little attention was Dutch carrier KPN’s decision to replace its legacy switched network with IP multimedia system (IMS) solution from Lucent Technologies. So what’s the big deal? Well, KPN is a long-time customer of Nortel, which has made it clear that IMS is one of its strategic priorities. Orion Securities analysts Duncan Stewart, who picked up on the contract loss, said KPN’s IMS decision can only be seen as a “competitive loss” given Nortel’s relationship with KPN. “The KPN deal is disappointing for Nortel because IMS is one of the key growth areas identified by CEO Mike Zafirovski,” he said in a research note, adding KPN provided KPN with a converged voice, data and video solution in 2000.

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