Building on a 15-year relationship, Nortel Networks will supply new Voice over IP (define) equipment to the United Kingdom's largest telecom carrier.

BT has placed an open-ended order for Nortel Communications Server 2000 (CS 2000), a softswitch (define) that will allow the British carrier to offer hosted VoIP services to large businesses and government agencies.

The CS 2000 will provide BT current hosted voice customers with an upgrade path, Ben Roome, a Nortel spokesman, told internetnews.com.

Financial terms of the deal between the Canadian network equipment maker and BT were not disclosed, and Roome declined to say if the pact was exclusive.

Two other U.K. carriers, Cable & Wireless and Timico, already use the CS 2000, Roome said. Elsewhere, Hong Kong Broadband and Sprint rely on the gear.

The project, which will use Nortel base stations and switching platforms, is a joint venture between Hutchinson Telecom Vietnam and Hanoi Telecommunications.

The new orders come at a crucial time for Nortel. Less than a month ago, its executives and board members faced scathing criticism at the annual shareholders meeting for failing to detect the accounting irregularities that sent the telecom equipment maker into a tailspin.

Shareholders also took heat for the resignations of President and COO Gary Daichendt and CTO Gary Kunis. The executives were on the job for only three months before resigning because their management styles clashed with Owens.

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