LG-Nortel Prepares to Capture Global IP Telephony Markets LG-Nortel, a joint venture between LG Electronics of Korea and Nortel Networks Corp. of Canada, plans to introduce high-end IP telephony solutions to the market aggressively and persistently this year, Lee Jae-ryung, CEO of the company, told the Korea IT Times in a recent interview. Noting that the IP telephony market will be developed at a rapid pace in 2006, Lee said, "LG-Nortel will produce high-quality IP telephony products in earnest this year." In 2006, LG-Nortel aims at maximizing synergy effects internally and actively exploring the overseas IP telephony market externally. Lee added, "The present trends are mobility and multimedia service. Accordingly, the success of the network equipment maker depends on whether or not customers' needs are satisfied, including the security problem. Another important factor is the price competitiveness. In these two fields, LG-Nortel has enough competitiveness." Asked about the LG-Nortel's major business projects for 2006, the top manager said, "To supply solutions most suitable for integrated security of all networks, we will graft a variety of platforms onto the SSLVPN service in all L4-L7 switch products. Along with this, we plan to offer bilateral supplementary solution between IPSec and SSLVPN. "At the same time, LG-Nortel will accelerate generation replacements through expansion of the L7 switch market and exert best efforts to find out new customers of SSL-VPN, as well as actively expand the domestic and foreign market," he said. To this end, LG-Nortel will seriously attempt to meet the needs of the domestic enterprises market and aggressively attack the large enterprise market in the IP Sec VPN business sector. As the portion of the application field to the total market is expected to grow, LG-Nortel will introduce the "multimedia collaboration" concept, under which all users can jointly share integrated messaging, videoconferencing, and file delivery with others. "In other words, we have a strategy to offer such various functions as data, sound, video, conference, instant messaging, white boarding, file exchange, coweb browsing, and existence management with a single piece of equipment," said Lee. On LG-Nortel's technology related to IP telephony, CEO Lee said, "IP telephony no longer means only VoIP as it includes valuable application area which is combined with a variety of multimedia." Recently, such an application has escaped from an independent application with a single purpose and has been developing into an integrated application performing many functions compositely. The ultimate goal of integrated application mobility in the IP telephony is to let users experience epoch-making improvement in productivity. Mobility in an integrated application carrying such purpose means that users can carry out and receive services they want at any time at any place with any equipment. Mobility in an integrated application helps users not only improve productivity sharply but also serve as a catalyst to let them approach to those with many IP telephony. Lee also said, "The final direction for development should be decided according to the needs of customers. In the past, enterprises selling products led the direction for development. However, the direction has been changing to the way that customers demand first. LG-Nortel will also analyze and set up network in such a way as to meet the way pursued by customers. Through negotiations with customers, we will make a strong push for customer-oriented business." In the meantime, LG-Nortel started its first road show, named the "Power Convergence of LG-Nortel 2006," in Daejeon from Feb. 20 for a 15-day run. The road show, the first since its official inauguration in November last year as a joint venture between LG Electronics of Korea and Nortel Networks Corp. of Canada, is designed to aggressively attack the domestic corporate communication market. Through the road show, LG-Nortel plans to introduce its total solutions in the corporate communication sector in detail to its corporate customers and channel partners, cementing its leading position in the global wire & wireless communication equipment and networking solution market. LG-Nortel will hold the road shows in the nation's major five cities - Seoul, Daejeon, Gwangju, Busan and Daegu - to introduce the company's network proposals for multimedia communication, which integrates convergence network, voice, data and media. Besides, it will explain its product strategies and individual solutions for corporate customers. Lee said, "Through these road shows, we will introduce LG-Nortel's total solution being applied to corporate communication. Based on advanced technology and strong competitive power, we will continue developing reformative products suitable for customers' needs."

The following are excerpts from an interview with CEO Lee Jae-ryung of LG-Nortel. Q: Firstly, would you tell our readers a bit more about LG-Nortel A: LG-Nortel was officially inaugurated as a joint venture on Nov. 3, 2005 between LG Electronics, a global maker of electronics and IT products, and Nortel Networks Corp., a Canada-based wire & wireless communication equipment maker. LG-Nortel supplies state-of-the-art communication and network solutions to the domestic and global wire & wireless communication, optical and enterprise markets. It consists of the career network business department and the enterprises business department. LG Electronics and Nortel were selected as joint partners to build HSDPA/WCDMA network of KTF and SK Telecom even before establishing the joint venture, working together closely. The total number of employees at LGNortel (www.LG-Nortel.com) is about 1,400. Q: Would you explain LG-Nortel's marketing and service strategies at home and abroad How about its global networks A: LG-Nortel was created in a form of joint venture between the network business department of LG Electronics boasting of the world's top-level technology and manpower to develop communication equipment and Nortel, a 100-year-old global communication equipment maker selling and developing top-level communication equipment goods. The joint venture between the two companies has a great meaning as it is entire business cooperation between core ability of LG Electronics and that of Nortel, not simple business cooperation. I expect that LG Electronics and Nortel will combine their advanced R&D technology and global marketing ability to produce goods necessary for up-to-date communication equipment and networking solution, creating synergy effects to the maximum. Q: LG-Nortel boasts of high-quality service and technology. Would you comment on the merits of LGNortel in the service, technology and solution sectors A: LG-Nortel's communication server 1000M is an all IPPBX product with excellent extensible ability. It helps customers save costs through the network, which is divided into sound and data, and implements new functions and applications to help them cope with positively according to business situation. Widely different from the existing digital phone, LG-Nortel's Internet phone i2004 uses the data network, making it possible to support state-of-the-art IP services, including various telephony functions and call pilot integrated messaging. At the same time, it sets the priority order of sound traffic, guaranteeing highquality sound. In particular, LG-Nortel WLAN handset 2211, the smallest and lightest product among existing handsets, offers such functions as automatic number identification, wait during call, conversion to terminating call, conversion to extension call and conferencing, while providing clean quality of call. The 2211 product offers all functions of LG-Nortel telephony with potable IP device, while supporting walkie talkie communication. LG-Nortel will take the lead in the global communication market as well as in the domestic market by leveraging their combined technologies and marketing power. LG-Nortel will become an R&D hub in the information and communication system sectors as a way to cope with the fast-changing IT industry environment and take the lead in developing next-generation technologies.