Bezeq Israel Telecom has announced that the company will discontinue its service arrangement with Nortel (News - Alert) Networks. Israel’s largest telecommunications service provider has decided not to renew the contract under which Nortel Networks provides maintenance services for the switches of Bezeq’s network. The contract is due to expire at the end of this year.

"The company decided not to renew the contract with Nortel after examining alternatives and finding them more suitable to Bezeq's needs," informed a Bezeq spokesman.

Nortel, the leader in information and communication technology, has responded to the announcement by saying that the failure to renew the contract may cause a breakdown of the Bezeq's network as it runs primarily on Nortel equipment. Of the total number of switches installed in Bezeq’s network, 60% are from Nortel and the remaining from Alcatel.

According to a report, the renewal, had it happened, would have extended the contract for another four years and would have cost Bezeq 80 million shekels ($20.7 million).

The report also carries an extract from a letter by Nortel Israel that warns Bezeq of the eventualities that may arise due to the decision. "There is a danger of the network collapsing and of problems in the billing system and treatment of services provided by the network to the private and business markets and to defence entities as a result of halting software upgrades to the network by Nortel," reads the letter.

The letter warned that its move might even jeopardize Bezeq's licence to provide fixed-telephony services.

It is believed that Bezeq will take up the maintenance of the services in its own hands, outsourcing some of the work. This decision is, supposedly, a cost-trimming measure. It is also being seen as preparation for migrating to a next generation network.

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Divya Narain is a contributing editor for TMCnet. To see more of her articles, please visit her columnist page.

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