Nortel has completed its merger with Bay Networks and restructured its lines of business to form a new division called the Carrier Packet Organisation. This division will target carriers building large packet networks with heavy-duty data networks, drawing on the competence of Bay. "Following the merger, we now have the broadest base of network technology possible," said Dave House, president of Bay. "We plan to unify these technologies onto one platform and move the voice world towards the packet world of the future. Data traffic is growing at 30% a year compared with voice at 3% and although the revenues for voice are much higher, data traffic is the future." John Ross, CEO of Nortel, said: "Using voice technologies to serve data traffic is not a good idea. Large volumes of data traffic should travel on frame and routing technology, which is where Bay's expertise lies." The new organisation will be based in Boston which is where most of Bay's IP switching R+D staff are housed. It will have roughly 150 staff made up equally of Bay and Nortel employees. Aptus, the remote access dial-up specialist, and Avechy, a terabit routing company, also based in Boston, will also be involved in the new Carrier Packet Organi-sation. Nortel acquired both firms last year. Malcolm Collins, Nortel's managing director of carrier packet networks Europe, said: "One of the first products customers are likely to see out of this division will be the enhanced passport turbo platform, a hybrid ATM/IP, 50 gigabit switch, around mid-1999."
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