Nortel Networks was disappointed to miss out
in Telstra's recent round of billion dollar networking hardware
contracts, but last week warned the winners they had better shape up or face being shipped out.
Back in November, Telstra chose Cisco, Ericsson and Alcatel as
key vendors to participate in a raft of billion dollar network
buildouts around the nation.
"That was a disappointment. That was an area that we were
looking to expand on," Nortel's Australia and New Zealand
president Mark Stevens said in an interview with ZDNet Australia
"The big onus on the people that won those contracts is to be
able to deliver and demonstrate what they can achieve," he
warned his competitors.
Stevens said despite the defeat Nortel would continue
to seek the heavyweight's business in different areas.
"Literally last week I was talking to some senior Telstra
people about some other areas which we could be exploring,
particularly as we start talking about some of the software
capabilities of our switches," he said.
He also pointed out Nortel was still providing hardware for
Telstra's mobile telephony CDMA network, including EV-DO hardware which upgrades
the network for wireless broadband. The network is gradually
being replaced by Ericsson with a higher-speed third-generation
"If you were to talk to Telstra, they would see the prime
mechanism by which they will get market share in the short term
is by deploying EV-DO, and they will continue to do that," said
Stevens also claimed an increasingly hostile attitude from Telstra towards its
wholesale customers since the telco's new management came on
board in the middle of last year was driving other
opportunities for Nortel.
"Alternate operators are trying to figure out where they sit
in the market place and what they need to do," he said. "In
the past, they might have leased services or infrastructure, now
maybe they'll build."
Stevenson said Nortel was working with virtually all of the
tier two telcos.
In the same interview, Stevenson outlined Nortel's intent to do more business with Cisco stalwart Alphawest, capitalising on what Stevens said was a good relationship with the services company's new owner, Optus.