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August 6, 2001
Nortel Networks to Build U.S. Terrestrial Optical Network for Southern Cross Cables
New Network Expected to Deliver More Cost-Effective, High-Speed Internet Data Services
BOSTON – Southern Cross Cables has selected Nortel Networks* [NYSE/TSE: NT] to supply ultra long haul DWDM (dense wave division multiplex) optical transmission equipment for the terrestrial portion of a 30,500-kilometer submarine cable network linking the U.S. mainland to Hawaii, Australia, New Zealand and Fiji beginning in the third quarter of this year.
Southern Cross will deploy Nortel Networks OPTera* Long Haul 4000 Optical Line System to provide reliable, high-speed, high-capacity data connectivity between cable landing sites on the U.S. mainland. OPTera Long Haul 4000 is the industry’s first open 10 gigabits-per-second (Gbps) optical backbone to break the 4,000-kilometer distance barrier without opto-electronic regeneration. “Southern Cross is committed to making the high-bandwidth broadband experience a reality for Australasian Internet users and their Internet Service Providers,” said Fiona Beck, chief executive officer, Southern Cross Cables Limited. “Nortel Networks success in building high-performance, all-optical networks assures us that we will be able to extend our market leadership by providing bottleneck-free connections via the U.S. to the global Internet, and by offering new, value-added services faster than ever before.” “Nortel Networks cost-effective, flexible, and easily deployable solution will allow Southern Cross to offer next generation customer services without bandwidth limitations or time-to-market constraints,” said Greg Mumford, who leads the Optical Internet business for Nortel Networks. “The speed and capacity of our ultra-long haul solutions – coupled with the fact that virtually no regeneration is required across ultra- long reach routes – can position our customers to profitably deliver high-capacity, highly-reliable optical services,” Mumford said. “At the same time, this increased all-optical reach technology is a fundamental enabler for the purely photonic networks of the future.” “OPTera Long Haul 4000 will yield significant operational and cost benefits to Southern Cross, as well as deliver new online opportunities for Australasian businesses and for North American organizations looking to participate in the growing online marketplace in Australia and New Zealand,” said Steve Wood, who heads up Nortel Networks business unit in Australia and New Zealand. “Affordable, abundant bandwidth, survivability at the optical layer, and rapid wavelength provisioning are vital to our customers as they begin offering new, seamless high-speed and high-capacity data applications such as wavelength services and optical VPNs (Virtual Private Networks),” Wood said. Nortel Networks OPTera Long Haul 4000 Optical Line System – named ‘Best Product’ in optical communications at Optix 2001 – is designed to help carriers be more responsive to the accelerating appetite for bandwidth in global markets. With its rapid wavelength provisioning, OPTera Long Haul 4000 provides carriers with the ability to deploy new services in record time, providing a distinct advantage in today’s highly competitive business environment. The OPTera Long Haul 4000 optical gateway provides an open interface to the Internet, connecting directly to data traffic via 2.5 or 10 Gbps interfaces. DWDM transmitters and broadband receivers feature built-in error rate monitoring as well as optical restoration. In addition, OPTera Long Haul 4000 provides the ultimate flexibility in wavelength manipulation, with 100 percent add/drop capability and wavelength management. Nortel Networks has also won a significant number of high profile optical networking contracts for customers in Asia, including Telstra and Cable & Wireless Optus in Australia, and some 29 contracts in China for 10G and DWDM optical solutions spanning more than 40,000 kilometers. Southern Cross Cables Limited (www.southerncrosscables.com) is an independent company responsible for the design, construction, marketing and management of the Southern Cross Cable Network. Based in Bermuda, with offices in Wellington, New Zealand and Sydney, Australia, the company is owned by Telecom New Zealand, Cable & Wireless Optus and WorldCom. The Southern Cross network entered service in November 2000 and consists of two separate submarine cables linking Australia, New Zealand, Fiji, Hawaii and the west coast of the United States. Signals can be transmitted simultaneously around both sides of the network to deliver fully protected capacity. When fully equipped, Southern Cross will potentially deliver 480 Gbps between Australasia and the United States – 480 times the existing trans-Pacific capacity via the PacRim system. The network offers one-way transmission delay of 70 milliseconds between Australasia and the United States, and is designed to deliver 99.999 percent network availability. Southern Cross’ investment in a second link between California and Oregon is in line with the company’s strategy to ensure the resilience of its overall network is improved. Nortel Networks is a global leader in networking and communications solutions and infrastructure for service providers and corporations. The Company is at the forefront of transforming how the world communicates, exchanges information and profits from the high-performance Internet through capabilities spanning the Optical Internet, Wireless Internet, Intelligent Internet and IP (Internet Protocol) technologies and services. Nortel Networks does business in more than 150 countries and can be found on the Web 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 rationalization 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; the impact of increased provision of customer financing and commitments by Nortel Networks; potentially higher costs actually incurred in connection with restructuring actions compared to the estimated costs of such actions; and the inherent uncertainties underlying the estimates and assumptions used in calculating asset valuations. 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:
Carrie Kasten
Nortel Networks
972-684-9404
ckasten@nortel.com
Elizabeth Lovett
Nortel Networks
+61 8870 5625
elovett@nortel.com
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