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March 19, 2001
Nortel Networks Launches Next Generation Optical Internet Solution
Driving Disruptive Technology, Redefining Economics With Best-in-Class 40/80 Gbps Systems, Optical Switches
ANAHEIM, Calif. – Nortel Networks* [NYSE/TSE: NT] introduced its next generation optical network solution, integrating best-in-class 40/80 Gbps building blocks to redefine network economics and deliver the lowest cost per managed bit in the industry.
Nortel Networks, the global Optical Internet market leader, will showcase this solution at Optical Fiber Conference 2001 in Anaheim, Calif. this week.
Building on the worldwide success of its 10 Gbps optical networking equipment, Nortel Networks next generation optical solution will be capable of delivering massive bandwidth that is reliable, flexible and affordable. It will be able to simultaneously carry over a single fiber pair more than 5,000 Gigabit Ethernet connections, or one million DVD movies streamed in real time over the Internet.
“Nortel Networks has delivered cutting-edge, disruptive technologies that have fundamentally changed the networking industry, and we will absolutely continue to do so,” said Greg Mumford, president, Optical Internet, Nortel Networks. “We will deliver a complete network solution, based on best-in-class building blocks, that focuses on total network economics for delivery of unprecedented new services.”
Nortel Networks next generation optical solution includes:
- Nortel Networks OPTera* Long Haul 5000 Optical Line System, the industry’s first integrated 40 and 80 Gbps platform.
- Nortel Networks OPTera Connect HDX, the first optical switch to support 40 Gbps services.
- Nortel Networks MEMS-based tunable laser for 40 Gbps platforms, now in systems trials.
- Nortel Networks Smart Optical Network, an integrated, multi-layer software solution that enables dynamic delivery of new, revenue-generating optical services.
Nortel Networks OPTera Long Haul 5000 is a completely open DWDM platform designed to support up to 160 wavelengths at 40 Gbps over an industry-leading 1,000+ kilometers. This sets the bar in the industry for optimization of both capacity and distance without regeneration, or “bandwidth reach.” Bandwidth reach is a new metric – representing overall network economics and flexibility – by which all future optical networking platforms will be measured. Initially, OPTera Long Haul 5000 will be optimized at 104 wavelengths at 40 Gbps over 1,200 km for an industry-leading bandwidth reach of almost five million Gbps km.
Nortel Networks OPTera Connect HDX is a multi-terabit optical switch that provides industry-leading scalability – from 3.84 to 40 terabits of switching capacity. As the industry’s only optical switch that supports both 10 Gbps and 40 Gbps interfaces, it plays a pivotal role by delivering a smooth path from today’s networks to disruptive, next generation capabilities.
“Nortel Networks strategy to offer service providers a 40/80 Gbps end-to-end network solution will significantly help service providers manage capacity cost-effectively,” said Brian Van Steen, optical networking analyst, RHK. “Nortel Networks has been delivering 10 Gbps systems globally for more than four years. This gives them unique insights into the development of 40/80 Gbps systems.”
“Our experience with 10 Gbps globally has provided us with invaluable knowledge for the journey to 40 and 80 Gbps,” Mumford said. “It is enabling us to aggressively address the real world challenges of large-scale deployment in an environment where cost, agility and enabling new services are vital.”
Nortel Networks will also apply this experience to other critical factors of network design like speed, distance and reliability. Nortel Networks has issued technical papers on lab trials that focus on these key factors:
- 32 wavelengths at 80 Gbps – Nortel Networks continues to accelerate the speed of optical networking with a trial at 80 Gbps.
- 32 wavelengths at 40 Gbps over 1,000 km – Nortel Networks illustrates a keen understanding of the complexities of networking over long distances, reducing the cost by eliminating the need for the expensive regeneration of optical signals.
In a related development, Nortel Networks announced the trial of its MEMS-based tunable laser that will enable service providers to isolate, route and manage individual wavelengths to better serve customer-specific traffic demand. The component has successfully completed critical tests for 40 Gbps transmission and exceeded design criteria.
Deployment of Nortel Networks next generation optical solution will begin later this year.
RHK ranked Nortel Networks number one in the North American long haul DWDM market in 2000 with a 61.4 percent market share, up from 37.1 percent in 1999.
Nortel Networks is a global Internet and communications leader with capabilities spanning Optical, Wireless, Local, Personal Internet and eBusiness. The Company had 2000 U.S. GAAP revenues of US$30.3 billion and serves carrier, service provider and enterprise customers globally. Today, Nortel Networks is creating a high-performance Internet that is more reliable and faster than ever before. It is redefining the economics and quality of networking and the Internet, promising a new era of collaboration, communications and commerce. Visit us at www.nortelnetworks.com.
Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include, among other things: the impact of price and product competition; the dependence on new product development; the impact of rapid technological and market change; the ability of Nortel Networks to make acquisitions and/or integrate the operations and technologies of acquired businesses in an effective manner; general industry and market conditions and growth rates; international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; the impact of consolidations in the telecommunications industry, the uncertainties of the Internet; stock market volatility; the ability of Nortel Networks to recruit and retain qualified employees; the ability to obtain timely, adequate and reasonably priced component parts from suppliers and internal manufacturing capacity; the impact of the credit risks of our customers; the entrance by Nortel Networks into an increased number of supply, turnkey, and outsourcing contracts which contain delivery, installation, and performance provisions, which, if not met, could result in Nortel Networks having to pay substantial penalties or liquidated damages; and the impact of increased provision of customer financing and commitments by Nortel Networks. For additional information with respect to certain of these and other factors, see the reports filed by Nortel Networks with the United States Securities and Exchange Commission. Nortel Networks disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Contact for Press and Analysts:
Bridget Braxton
Nortel Networks
972-685-8813
bbraxton@nortel.com
Ben Roome
Nortel Networks
44 20 7529 3036
benroome@nortel.com
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