|
|
TECHNOLOGY
AGREEMENT PRESS RELEASE
(MobileInfo
acknowledges Xircom Web Site for this Press Release)
Nortel Networks to Work With
Sierra Wireless, Xircom on 3G UMTS Wireless Modems
Firms Plan to Speed Availability of ‘Missing Link’ Between Digital
Devices, Internet Content
BOSTON – Nortel Networks* (NYSE/TSE: NT) has signed agreements under which
it will assist both Sierra Wireless (NASDAQ: SWIR; TSE: SW) and Xircom
(NASDAQ: XIRC) to independently develop the industry’s first third
generation (3G) wireless modems based on the UMTS (Universal Mobile
Telecommunications System) standard, accelerating availability of these
modems to enable ‘anytime, anywhere’ access to rich Internet content
through digital devices of all kinds.
Sierra Wireless and Xircom both plan to develop their own multi-mode
UMTS/GPRS (General Packet Radio Service) wireless modems in form factors
including PC cards, Compact Flash cards and embedded modules. Nortel
Networks will help fund these development efforts, and provide technical and
joint marketing support. Plans call for market trials and general
availability in the first half of 2002.
“We’re combining the intelligence of IP (Internet Protocol), the
accessibility of the Wireless Internet and lightning fast Internet access to
any device, any time,” said Frank Plastina, president, Wireless Internet,
Nortel Networks. “We expect these new modems to provide the ‘missing
link,’ unleashing a torrent of data by freeing applications from the
desktop and enabling a new wave of applications and services that are
scarcely imaginable at today’s speeds.”
Accelerated availability of 3G wireless modems is also expected to enable
Nortel Networks service provider customers to take full advantage of the
Wireless Internet revolution. Mobile professionals and consumers will be
able to plug them into personal digital assistants (PDAs), laptop computers,
in-vehicle information systems, MP3 players, digital cameras and other
IP-enabled personal digital devices for untethered access to e-mail,
eBusiness, mobile commerce and multimedia services over 3G networks.
“At BT Wireless, we intend to maintain our current lead in mobile
data when we launch our 3G service,” said Tony Greaves, senior vice
president, 3G & Airwave, BT Wireless. “Availability of device supply
is key. We expect a range of 3G devices to be commercially available in
2002, and we are talking with a number of manufacturers worldwide. The
activities announced today will help to ensure early availability and choice
of products, and provide us with options for early priority ordering through
our strategic relationship with Nortel Networks.”
“We’re committed to enabling mobile users to take full advantage
of the high-performance Internet,” said Peter MacKinnon, vice president,
Wireless Internet, Nortel Networks. “We expect a plethora of connected
wireless IP appliances to spur tremendous growth of wireless data, allowing
service providers to differentiate services profitably and grow average
revenue per user.”
Development of 3G wireless modems
will support Nortel Networks ‘Wings of Light’ strategy, which combines
optical, wireless and IP technologies to help operators provide highly
reliable, high-speed access to Internet services and applications.
Nortel Networks recently announced an estimated US$1.8 billion in European
UMTS network awards, including a five-year contract with BT Wireless
subsidiary BT Cellnet in the United Kingdom, a 12-month build out for Airtel
in Spain, and a three-year deal with Xfera, also in Spain.
“Working with Nortel Networks on UMTS drives Sierra Wireless firmly into a
strong global position,” said Andrew Harries, senior vice president,
corporate development, Sierra Wireless. “We are currently leading the way
in the North American market for 2.5G and 3G wireless modems and are focused
on wirelessly enabling notebooks and PDAs. Today’s announcement continues
our drive for technology leadership, complete and compelling 3G solutions,
and a strong global presence.”
“As the worldwide industry leading provider of global mobile access
solutions, Xircom is paving the way for reliable 3G wireless information
access,” said Mike Scullin, vice president, business development, Xircom.
“By leveraging our years of experience in the enterprise, we are well
positioned to develop the expanded opportunity that 3G brings to the
consumer market. Together, Xircom and Nortel Networks will enable the
Wireless Internet by promoting the development of next generation,
high-speed data devices.”
Strategy Analytics expects the market for personal digital devices across
the United States and Europe to nearly triple in size from US$20.9 billion
in 1999 to US$57 billion in 2005.
Sierra Wireless, Inc. is a leading provider of wireless data communications
hardware and software products. Sierra Wireless delivers wireless PC Cards
for portable computers, wireless adapters for PDAs, OEM modules for embedded
applications and rugged vehicle-mounted wireless systems. Sierra Wireless is
the founding member of the WirelessReady* Alliance, an alliance of
industry-leading hardware, software and service companies committed to the
delivery of complete and compelling wireless data solutions. For more
information on Sierra Wireless, visit its Web site at http://www.sierrawireless.com.
For over a decade mobile professionals around the world have relied on
Xircom for access to their information anytime, anywhere. Xircom designs and
develops innovative solutions that connect mobile users worldwide to
corporate networks, the Internet, intranets and other on-line resources.
Xircom sells and supports its products in over 100 countries through
distributors, resellers, electronic channels and global OEM partnerships.
Headquartered in Thousand Oaks, Calif., with regional headquarters in
Belgium, Japan and Singapore, Xircom has 1,900 employees worldwide and
trailing four-quarter revenue of US$496 million.
Nortel Networks is a global Internet and communications leader with
capabilities spanning Optical, Wireless, Local Internet and eBusiness. The
Company had 1999 U.S. GAAP revenues of US$21.3 billion and serves carrier,
service provider and enterprise customers globally. Today, Nortel Networks
is creating a high-performance Internet that is more reliable and faster
than ever before. It is redefining the economics and quality of networking
and the Internet, promising a new era of collaboration, communications and
commerce. Visit us at www.nortelnetworks.com.
For more information:
Certain information included in this press release is forward-looking and is
subject to important risks and uncertainties. The results or events
predicted in these statements may differ materially from actual results or
events. Factors which could cause results or events to differ from current
expectations include, among other things: the impact of price and product
competition; the dependence on new product development; the impact of rapid
technological and market change; the ability of Nortel Networks to make
acquisitions and/or integrate the operations and technologies of acquired
businesses in an effective manner; general industry and market conditions
and growth rates; international growth and global economic conditions,
particularly in emerging markets and including interest rate and currency
exchange rate fluctuations; the impact of consolidations in the
telecommunications industry, the uncertainties of the Internet; stock market
volatility; the ability of Nortel Networks to recruit and retain qualified
employees; and the impact of increased provision of customer financing by
Nortel Networks. For additional information with respect to certain of these
and other factors, see the reports filed by Nortel Networks with the United
States Securities and Exchange Commission. Nortel Networks disclaims any
intention or obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise.
*Nortel Networks, the Nortel Networks logo and the Globemark are trademarks
of Nortel Networks. WirelessReady is a trademark of Sierra Wireless.
(Dedicated to
providing comprehensive information to mobile computing community of IT professionals,
user organizations, and vendors)
|