Nortel Networks has slashed the prices for most of its routers and at the same time released its routing code for licensing.
Announced last week in the US, local Nortel executives will be detailing the news at this week's Networld + Interop conference in Sydney.
Alan Pettigrew, director of product marketing, Nortel Networks South Asia Pacific, said last week the new router prices and open code would expand the networking market and numbers of customers adopting routing and IP technologies.
Nortel is offering routers at up to 50 per cent of the cost of current products, the company announced.
"It will reset people's expectations of what they're going to pay for routers," Pettigrew said of the impact the price cuts would have on the Australian market.
According to Pettigrew, despite a cost hike of around 5 per cent each year for routers, performance has not increased at the same rate.
"We're saying that is holding back the rest of networking. Let's commoditise that area," he said.
Pettigrew said the availability of licences for Nortel's Open IP environment routing and IP software will also open up the marketplace.
Combined with Intel's Internet Exchange (IX) Architecture, the software enables any device to be IP-enabled, he said.
Pettigrew said 85 companies have signed up to use the code. It is unknown whether any Australian companies have signed up, he said.