Nortel Readies New Voice-Data Product

Nortel Networks on Monday will introduce a new product, developed in conjunction with Hewlett-Packard, Microsoft and Intel, that will combine data and voice functions over the Internet.

The area is one that is rapidly growing in importance for telecommunications companies, driving French telecommunications firm Alcatel’s pending purchase of Xylan and Lucent Technologies’ pending $20.7-billion purchase of Ascend Communications.

Hewlett-Packard will also demonstrate a new product aimed at businesses, and the chief executives of all four companies will make presentations.

“I can’t recall a coming-together of forces represented by these companies,” said Mike Deshaies, spokesman for Nortel. “Convergence is important because, if you unify your networks, in terms of economics there’s a huge boost. If you have a unified network, you’re going to have a much easier time taking advantage of the Internet.”

The companies declined to discuss details of the new products.

Deshaies said the $1-billion market for combined voice-and-data products is expected to grow to $10 billion in the next five years.

Ontario, Canada-based Nortel has worked with Microsoft before, in 1993, releasing the first client-server product using a Microsoft language for connecting personal computers using Windows to telephones.

The new line is dramatically different, the companies said, and the informal alliance will continue afterward.

HP last year, with less fanfare, announced a voice-data project with Cisco Systems, the largest maker of networking equipment.

Products from that venture are aimed at consumers more than businesses, a HP spokeswoman said.