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Nortel's Government Solutions arm has won a US$300 million, 10-year contract to outfit the U.S. Social Security Administration with an IP-telephony system.

The award is part of the SSA's Telephone Systems Replacement Project. It calls for replacement of the SSA's existing worldwide telephone systems with VOIP to create a converged voice and data network. This network is designed to accommodate an anticipated influx of new users, including retiring, largely Internet-savvy baby boomers, Nortel says.

Nortel expects the project to be among the world's largest VOIP implementations.

The network will replace existing telephone systems in nearly 1,600 SSA field offices. It will include a 55,000-agent contact center with unified messaging and interactive voice-response capabilities. It will also provide security capabilities to protect citizen information and support for disabled users in compliance with Section 508 of the Rehabilitation Act, Nortel says.

The network is also intended to enable SSA to expand and improve service levels, consolidate monthly recurring public network-service costs, decrease operating and maintenance costs, and future applications and services.

Nortel Government Solutions will provide VOIP hardware, software, integration and deployment services for SSA regional offices, program service centers and field offices. Network operation services, user support and training are included.

The Nortel Government Solutions team includes General Dynamics, Black Box Network Services, Shared Technologies, AT&T, York Telecom, High Wire Networks, NetIQ and Pal-Tech.

Nortel Government Solutions is also involved in VOIP transitions for U.S. Government customers U.S. Air Force and the Department of Defense. Nortel also recently landed a VOIP projects at The New York Times .