Nortel Networks (NYSE: NT) announced today that Telus, one of the largest telecommunications companies in Canada, has signed a deal to migrate its circuit-based long distance network to a packet-based platform using voice over IP equipment developed by Nortel in the Triangle.

Details of the agreement were not disclosed.

Telus is purchasing Succession Communication Server 2000 soft switches and Passport Packet Voice Gateway products in 11 locations across Canada. The new equipment will enable voice traffic to be carried over a high-speed IP network with the type of voice quality consumers have come to expect from long distance services, according to a statement released by Nortel.

In that statement Dr. Girish Pathak, chief technology officer for Telus, said: “With Nortel Networks Succession solution, we have leveraged our existing equipment, migrating our toll traffic from other carriers’ networks onto our own, and we are significantly lowering our network costs.”

Through third quarter 2002 Nortel revenues decreased 43 percent to $8.04 billion while net losses from continue operations also fell 85 percent to $3.34 billion.

During the past 52 weeks shares of NT ranged in price from 43 cents to $9.05 and recently traded near $1.46. The company?s market capitalization totals $5.38 billion.

Nortel Networks: