Nortel Networks, the global leader in Optical Internet solutions, announced a strategy which could change the way optical services are utilised in the communications industry, says Malcom Bayes, Country Manager of Nortel Networks SA, and VP of the SSA region.
"Nortel Networks` managed optical services strategy will enable communications and Internet service providers worldwide to rapidly introduce a broad range of new services, as well as allow the company to deploy, manage, buy, sell and lease individual wavelengths of light on an optical network," reports Bayes.
This revolutionary endeavour was demonstrated this week at the National Fiber Optic Engineers Conference in Denver in the US. Nortel Networks Managed Optical Services include Managed Wavelength Services, the first solution in this strategy and already available today. Managed Wavelength Services enable light to be effectively distributed by color or wavelength so customers can obtain and control the bandwidth they want, when they want it.
"It`s all about delivering speed, reliability, quality and profitability to our customers and their consumers," says Bayes. "And we can do this by selling hair-thin strands of fiber or individual colors of light. Our customers will be enabled to create new profit opportunities via the high-performance Optical Internet."
Bayes says Nortel Networks has first mover advantage in offering this full range of Managed Optical Services because of its depth of excellence in Optical Internet, Internet Protocol (IP) and serviceware. "These capabilities are delivered by Nortel Networks OPTera family of solutions including OPTera Connect DX and HDX Connection Managers, Nortel Networks Shasta 5000 Broadband Service Node, and the Nortel Networks Preside product portfolio, including the new Preside Service Commerce Hub."
Service providers will gain opportunities to realize more revenue from Managed Optical Services, operating their businesses with greater flexibility, opening new routes, and deploying network capacity faster than ever before. They will also have the capability to define new profit and revenue opportunities by packaging wavelengths and bundling other Internet-related services for end-to-end Optical Internet intelligence and security. Through Managed Wavelength Services, they will be able to lease or trade bandwidth on an `as needed` basis via wavelengths - or colors - creating a cost-effective alternative to leasing dark fiber or private lines.
"CIBC World Markets Telecom Services estimates the demand for wholesale bandwidth will generate over US$60 billion in optical services in 2004, compared to an estimated US$13 billion this year," points out Bayes. "Internationally, 360networks and Williams Communications are already deploying Nortel Networks Managed Wavelength Services. North East Optic Network (NEON) will deploy Managed Wavelength Services beginning in the fourth quarter of this year. There are also local opportunities to deploy this technology."
Williams Communications was the first carrier to introduce an Optical Wave product to the market in 1999, and has recently announced a plan to implement an OC-192 Wave service by the fourth quarter of this year. "Williams Communications` Optical Wave Service is a core component of our next-generation network," says Frank Semple, president of Williams Communications` network unit. "Leading technologies like these enable us to provide our customers with the flexibility to add bandwidth and customized services on demand, bridging the gap between the services layer and the optical layer. With aggressive providers like Nortel Networks, Williams will continue setting standards and driving new technology in the industry."
360networks, a global carrier`s carrier, is using Managed Wavelength Services as its network expands. "In North America alone, 360networks has implemented over 7,000 route miles of Managed Wavelength Services using Nortel Networks` product and services, offering 2.5 and 10 gigabits per second wavelength capacity," says Steve Baker, chief technology officer, 360networks. "360networks is continuing to expand and grow its network, and will have 24,000 route miles in service by the first quarter of 2001."
NEON, a carrier based in New England, will utilize Managed Wavelength Services to enable fast deployment of transparent optical connections with a high level of control and network management. "Optical wavelengths are the building blocks of next generation service provider networks, and we anticipate that optical wavelengths will be the unit of commerce for all service provider networks," says Ron Steele, chief technology officer, NEON. "Once only a vision, Nortel Networks Managed Wavelength Services are now the strategic foundation for us to provide an expansive set of innovative solutions that meet our customers` needs and demands."
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Nortel Networks
Nortel Networks is a global Internet and communications leader with capabilities spanning Optical, Wireless, Local Internet and eBusiness. The Company had 1999 U.S. GAAP revenues of US$21.3 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.
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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; and the impact of increased provision of customer financing 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.