Nortel broadband returns

Nortel Networks jumped back into the broadband market today, announcing that it has signed a three-year marketing and technology development agreement with Calix.

Under terms of the deal, Nortel will integrate Calix’s C7 platform with its existing product line. Additionally, the companies have agreed to embark on a joint-development process that is expected to lead to future product packages.

“From a Nortel perspective, we’re taking a leadership position with out packet core and extending it out,” said Walt Megura, general manager of Nortel’s recently created broadband networks group. “In terms of timing, it’s perfect.”

For Nortel, the alliance actually marks a continued return to the broadband business. In 2001, the company sold off what remained of its broadband product line to Zhone Technologies. However, the company has slowly been creeping back into the market, signing an alliance with ECI Telecom to market that vendor’s DSLAMs last year. And according to Megura, the new alliance with Calix is focused more on what the company is calling “ultra-broadband.”

“It’s the need to drive at least 10 Mb/s to 20 Mb/s out to the home,” he said.

For Calix, which has been making a healthy living selling to the independent operating company market, the link-up with Nortel gives it some obvious heft with larger players. Additionally, Nortel will be able to begin the process of bringing the C7 to the international market, said Kevin Walsh, vice president of marketing for Calix.

“It certainly is a strong endorsement,” he said.