Nortel, the Canada-based telecom equipment supplier, is gearing up to push more of its products through the channel, increase its revenue through these sales and strengthen its relationship with its VARs.

The new commitment to the channel comes after the Toronto company inked a new deal with Microsoft to develop telephone systems that will operate with PC software.

The company also established new ties with several distributors, including Ingram Micro, SYNNEX and Westcon Group.

In a statement, Dion Joannou, president of Nortel North America, called the decision to increase channel sales an effort to grow the company in both the Canadian and U.S. telecom market.

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"Nortel is committed to improving and strengthening relationships with our channel partners, increasing the value we bring to customers and mutually growing our respective businesses," Joannou wrote in a July 24 statement.

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To help improve relations with its channel partners, Nortel plans to simplify its channel program, focus on new revenue and establish new training and technology.

In its release, Nortel highlighted several improvements it intends to make in the channel.

These include embedding services with the company's enterprise channel, strengthening and maintaining training with its partners and offering better communication to simplify its relationship with VARs.

With the new agreements with Ingram, SYNNEX and Westcon, Nortel hopes to tap into the SMB market, the company said.

The channel announcement came at the same time Nortel finalized a new, four-year deal with Microsoft. Nortel expects to collect more than $1 billion in new revenue with this partnership.

The deal also comes at a time when Microsoft has begun to expand into the business telecommunications market.

Click here to read more about the new partnership between Nortel and Microsoft.

The companies are looking to simplify business communication by coupling new software with telephones and computers.