Nortel is getting ‘deeply engaged’ in Internet security as it mov...

“Nortel devotes a lot of money and a lot of time and has a lot of understanding about security of networks of the world as it relates to the Internet,” he said. Owens said other areas of focus for Nortel included service and govt. businesses. “Government business is a really good business for Nortel,” he said: “In the United States this year, this is at least a $60 billion market. Nortel will compete much more aggressively in that federal marketplace.” As reliance on the Internet grows “in profound ways,” Owens said, “this is a time when we must start to focus on how reliable it is.” He said the question was emerging whether Internet was as reliable as circuit switched voice. “The answer to that in many instances today is no, it’s not,” he said: “It’s a matter of simply exchanging digits from routers around the Internet and that doesn’t provide the reliability. So you need to have an ability to go into the Internet, identify voice packets, put them together, prioritize them and deliver… a reliable voice over the Internet. Nortel… has a range of products that include both the copper wire world as well as cable networks.” On the regulatory side, Owens said the govt. should: (1) “Realize that this country will set the standards for the use of the Internet from a regulatory perspective around the world and understand that that is a responsibility that goes beyond just setting policy for the United States.” (2) “Focus on developing a policy that can be put in place and maintained without change, so that there is less turbulence in the marketplace.” (3) “Realize… that today, when we are all into a new world of converged Internet experience, it is far less likely that individual states can set there own policies and then the FCC put in place an umbrella policy that is optimal.” Separately, Nortel also said Thurs. it expected 3rd quarter revenue to be lower than the company’s announced preliminary unaudited revenue for the 2nd quarter. The company expects 2004 percentage revenue growth to be in the mid single digits and the overall communications equipment market to grow faster than that. Owens said while the company was going through “this challenging transition period,” he was “confident” that it would be “positioned to compete strongly in all our markets… as we move into 2005.” He said in the near future, Nortel would focus on: (1) Addressing financial accountability. (2) Implementing “an excellent business in terms of its business model and the growth of cash” and revenue. (3) Developing a strategic vision about a changing marketplace, which certainly “will be a consolidated marketplace. Nortel wants to be a consolidator and not a consolidatee.”