Nortel Israel continues to be the most significant operation in the southeast Europe region for the communications solutions provider, as sales continue to outgrow the local market, the company's head said on Sunday. Speaking to the press at the company's local headquarters in Airport City, Sorin Lupu, president of Nortel's Israel, South East European and Russian operations, said 2006 sales were boosted by its enterprise solutions unit, which reported 25 percent growth over a year earlier. "The growth was greater than the natural growth of the market," he said, without providing exact figures. Canadian-based Nortel delivers communications capabilities to telecommunications service providers and enterprise customers. Lupu said the local operation had restructured to focus on three areas: carriers, services and enterprise businesses, and that this would be its strategy for 2007. Its enterprise unit, showed the biggest growth last year, he said. Lupu added however that the local telecommunications market was changing rapidly and that the cellular market in particular was far outpacing its European counterparts. Nortel said it is working with most of the companies in the telecommunications market, particularly as the expected convergence into three main groups takes shape in 2007. This include supplying solutions to most of the subsidiaries of Bezeq, the IDB Group, Partner/Orange and HOT, it said. Regarding technology, the company is focusing its efforts on fourth generation and converged networks that will link WiMAX and cellular networks. Meanwhile, in another effort to return the company to profitability, Nortel said earlier this month it plans to cut around 2,900 jobs worldwide and move another 1,000 to India, China and Mexico from higher cost locations over the next two years, in an effort to lower expenses by as much as $400 million. The company has eliminated approximately 60,000 jobs in the last six years and now has around 34,000. A spokesperson for Nortel Israel said the cuts won't effect the Israel operation, which has about 170 workers. Lupu hinted at an opposite trend in Israel and said the company has outgrown its current location and is planning to move offices this year. Bloomberg contributed to this report.