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With the growth of data, voice and multimedia communications over the public telephone network, the public Internet and private voice and
data communications networks, there is an increasing opportunity to converge disparate networks towards a single, high performance packet
network that can support most types of communications traffic and applications. Converged voice and data networks also provide an
opportunity for service providers to offer new revenue-generating services while reducing their ongoing operational costs year over year as
they incorporate packet-based technology in their networks. We believe our advantage lies in our ability to transition and upgrade our
customers’ installed base of voice and data network solutions to a multimedia IP network.
To meet the growing demand for new revenue generating services and network efficiency, we anticipate growth in demand for packet-based
networking equipment that supports the convergence of data, voice and multimedia communications over a single communications network
and that provides greater network capacity, reliability, speed, quality and performance. We anticipate a continued increase in deployments of
service provider voice over IP networks worldwide. While we anticipate growth in voice over IP networks, we also anticipate a decline in
legacy voice networks.
Cable operators and new Internet telephone service providers are entering the voice and data markets and are increasing the competitive
pressure on established service providers. For example, cable operators provide high speed data services as well as voice services by using
voice over IP technology. Similarly, established service providers are using existing broadband networks and expanding those broadband
networks to offer bundled services such as telephone, high speed Internet and television services across those broadband networks.
The market for our Wireline Networks products is global. Service providers are expected over the long term to continue to modernize with
packet-based networks and converge voice and data communications networks in order to deploy new revenue-generating service offerings.
We anticipate an increased emphasis by service providers towards end-user networks in addition to their efforts to modernize the inter-
connection of those networks. In EMEA, we also continue to see market demand for certain networking products, including equipment for
voice over IP and equipment for virtual private networking. In EMEA, we anticipate continued opportunities with alternate operators, cable
operators and wireless operators and anticipate new opportunities in emerging markets.
In the Asia Pacific region, we continue to see market demand for certain networking products, including equipment for voice over IP and
multimedia services and equipment for virtual private networking. Deregulation in China has created opportunities for new entrants who are
building out their networks with packet-based technologies. In CALA, service
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• Enhancements to the MCS 5200, part of our multimedia communications portfolio, that will allow a service provider to offer
intelligent multimedia services across any manufacturer’s circuit switches. Additionally, development will focus on increasing the
breadth and usability of the MCS 5200 applications.
• Additions to the DMS portfolio that will allow service providers to offer and manage IP voice and multimedia (Centrex IP) services
to those businesses that use traditional business telephones as well as businesses that use next generation telephones designed for
use in IP networks.
• Enhancements to our IP services router that enable an increase in the number of residential subscribers and virtual private network
sites that can be supported, and the amount of bandwidth that can be applied to an enterprise site. Development will also focus on
enhancing the ability of our service provider customers to provide additional revenue-generating services.
• A focus on cable standards compliance to enhance our solutions for the cable operator markets in the United States, Canada and
EMEA, including support for the open cable standard protocol for cable media gateways.
• Enhancements to our WAN switch portfolio to improve interoperability with other vendors’ products. In addition, development will
focus on enhancing the migration to converged networks which simultaneously support data, voice and multimedia.
• Continued development of a multiservice provider edge networking device designed to converge multiple communications services
operating at the IP or multi-protocol label switching network edge. This device is currently undergoing customer trials and is not
yet generally available. As well, we continue to develop enhancements to our existing line of WAN switch and IP service router
products that are intended to efficiently aggregate different types of data traffic at the network edge.
• Continued integration of a service provider core network router into our voice over packet portfolio to enable us to provide a
complete end-to-end solution.