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May 23, 2001
BLUE COUNTRY networks to Deploy Mediterranean’s First Optical Festoon Network
PARIS – BLUE COUNTRY networks, a carrier’s carrier, has selected Nortel Networks* [NYSE/TSE: NT] as the exclusive supplier for the first festoon telecommunications network to be deployed in the Mediterranean Sea under an initial agreement estimated to be worth US$15 million (20 million Euro). Festoon networks are submarine communications systems that have no submerged active equipment such as repeaters.
Scheduled to be ready for service in the first quarter of 2002, this network will initially connect southern France (Marseille, Toulon, Monaco) to Corsica (Calvi, Ajaccio, Bonifacio, Solenzara, Bastia) with the west coast of Italy and inland to Rome. Additional loops are planned for deployment beginning in 2002 to link Spain, Morocco, Algeria, Tunisia and other parts of France and Italy. BLUE COUNTRY networks envisions a high-capacity optical infrastructure linking all major Mediterranean cities by 2005. "The business potential for a carrier in the Mediterranean is substantial, especially with the prospect of developing exchanges between Mediterranean countries," said Philippe Vertuaux, president, BLUE COUNTRY networks. "High capacity telecommunications infrastructure is almost non-existent, as demonstrated by our pre-sales figures from various French and Italian carriers. We intend to be the first Mediterranean optical supplier and we chose Nortel Networks for its optical know-how and its ability to rapidly deploy such an infrastructure." "With this strategic win for a major new European route, Nortel Networks is extending its leadership in redefining the economics and quality of networking," said Greg Mumford, president, Optical Internet, Nortel Networks. "We are excited by BLUE COUNTRY networks because their network represents a significant step for Nortel Networks in globalizing the high-performance Internet. Our repeaterless festoon network will help BLUE COUNTRY networks to produce revenue more rapidly, cuts its operational costs and deploy its network rapidly." Nortel Networks solution for BLUE COUNTRY networks will include Nortel Networks OPTera* Long Haul 1600 and OPTera Long Haul 4000 Optical Line Systems. Using dense wave division multiplexing (DWDM) technology, the network will enable optical links without repeaters over distances up to 300 kilometers using Raman amplification. In addition, the fiber pairs in the network will have a capacity of up to 1.6 terabits per second. This will position BLUE COUNTRY networks to provision broadband capacity over wavelengths for customers with the highest capacity long haul needs. "Nortel Networks continues to be at the forefront of key communications technology development, including DWDM, forward-error correction (FEC), where transmission errors are automatically corrected to significantly improve reliability, and Raman amplification," said Michel Clément, president, Nortel Networks France. "This puts us in a strong position to deliver the latest optical networking technology." Norddeutsche Seekabel Werke, (NSW) a subsidiary of Corning Cable Systems, will be responsible for delivery and installation of the cables. Based on the latest advances in festoon technology, these cables will be designed to quickly and cost-effectively provide as much as three times more fibers per cable than traditional submarine cable technology. "The combination of our latest submarine cable technology with Nortel Networks expertise in optical equipment will help position BLUE COUNTRY networks to meet its business objectives," said Wolgang Giebel, general manager, NSW. BLUE COUNTRY networks is addressing the carrier’s carrier telecommunications market. It builds and operates festoon submarine cables, with no submerged equipment. BLUE COUNTRY networks offers 2.5 and 10 gigabits per second services. BLUE COUNTRY networks service differentiation resides in the high network redundancy obtained through loop architecture and secure landings. NSW is a wholly owned subsidiary of Corning Cable Systems and a leading supplier of underwater cables and systems. The submarine cable group of NSW and its partners provide customers with the full range of submarine fiber-optic cable products and turnkey solutions. These include network planning, marine surveys, submarine cable, flexible cable joints, cable supply logistics, deep-sea laying and burial, shore-zone cable landing, system commissioning, repair and maintenance, as well as training and system documentation. NSW's mission is to be the most innovative and competitive player in the field of repeaterless submarine cable systems worldwide. 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. *Nortel Networks, the Nortel Networks logo, the Globemark and OPTera are trademarks of Nortel Networks.Contact for Press and Analysts:
Ben Roome
Nortel Networks
+44 207 529 3036
benroome@nortel.com
Ann Fuller
Nortel Networks
+1 613-768-1208
afuller@nortel.com
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