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Nortel Israel is becoming increasingly important to its Canadian parent, expecting to close out 2005 with sales of NIS 500 million.
Speaking at a press conference at the unit's headquarters in Airport City on Sunday, Nortel Israel CEO Sorin Lupu said Nortel Israel's business "significantly outgrew" the market in both the service provider and enterprise divisions, with the enterprise operation growing 13 percent to contribute NIS 100 million of total sales in 2005.
The local unit now accounts for a much bigger part of the international telecommunications company's local and global activities. Analysts estimate sales for the parent will reach between $10.82b to $11.19b. in 2005, as compiled by Thomson Financial Network. Nortel had revenues of $9.83b and a net loss of $51m. in 2004, and recorded a net loss of $109m. for the first nine months of 2005.
Helping to generate those higher numbers is an ever increasing work force. Nortel Israel added 25 employees this year, bringing its total to 180. During the year, Lupu, who also is president of Eastern European markets at Nortel, was given the additional responsibility for Poland and South Eastern Europe, as well.
Canadian-based Nortel delivers communications capabilities to service providers and enterprise customers encompassing end-to-end broadband, Voice over IP, multimedia services and applications, and wireless broadband in its solutions.
In its 25th year of operations in Israel, Nortel now lists cellular operators Pelephone and Partner in its local service provider customer base, as well as telecommunications company Bezeq and cable company HOT; the Defense Ministry; long distance calling provider 013Barak; and Palestinian telephony company PalTel.
Israel is also one of the few markets in which both Nortel's CDMA and UMTS or GSM networks are being used by cellular providers for their 3G platforms - CDMA by Pelephone and UMTS by Partner.
CDMA, or code division multiple access, networks are a low-cost and high-frequency method for transmitting simultaneous signals over a shared portion of a wireless spectrum, while UMTS, or universal mobile telecommunications system, is a derivative of CDMA which provides service in the 2GHz band, offering global roaming and personalized features for the 3G wireless system.
Having the two systems active in the same market gives the company an important perspective on how the two technologies play off against each other.
"To date, both are working on a very high level," Lupu reported.
On the enterprise side, Nortel Israel last month won a contract to supply the Knesset with an advanced IP (Internet protocol) solution. The company also has carried out projects for HOT, Cellcom, Israel Electric Corporation and ECI Telecom, providing each with a specified IP telephone solution.