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Nortel Networks - optical innovation and leadership

Johannesburg, 24 Aug 2000

"You knew we were big in Optical - this is how big" Figures just released by noted American group Dell`Oro for the second quarter of this year shows that Nortel Networks has extended its share of the global optical transmission market to more than 43 percent, nearly three times the score of its closest competitor.

The second quarter 2000 global optical transmission market - dense wavelength division multiplexing (DWDM) and SONET/SDH - was US$5.94 billion, up 66 percent over the second quarter 1999 level of US$3.57 billion.

This incredibly sturdy leadership position is made possible by the robust existing product suite and by internal innovation such as that also announced today.

"Innovate or Die"

Nortel Networks is the first company in the world to take the next step in the provision of managed optical services to its customers by offering the capability to sell colours of light. Critically, this new ability will enable communications and service providers worldwide to rapidly introduce a broad range of new services, and to deploy, , buy, sell and individual wavelengths (colours) of light on an optical network.

The colours come into play because Nortel, through its Managed Wavelength Services, is able to "colour" a strand of fibre based on its wavelength and then offer this out to a customer so that the customer can then control the bandwidth they want intelligently and efficiently. For instance - Vodafone may take the colour red, BT Cellnet the colour blue, etc.

Why is this so important to customers?

Well service providers will gain opportunities to realize more revenue from Managed Optical Services, because they can operate their businesses with greater flexibility, open new routes, and deploy 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.

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