Nortel Networks widens lead in optical Internet

Nortel Networks continues to widen its lead in delivering high-performance Optical Internet solutions worldwide according to the Dell`Oro Group, an independent research and consulting firm.

Dell`Oro`s worldwide market data 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, according to Dell`Oro.

"We have extended our leadership from 30 percent in 1999 to 36.6 percent in the first quarter of 2000 to 43 percent in the second quarter - that`s market momentum," said Don Smith, president, Optical Internet, Nortel Networks.

"Being ranked at the top in this highly competitive industry is a testament to Nortel Networks` technology leadership, and to our focus on ensuring that our customers have first-mover advantage with the highest quality, fastest, most reliable and most profitable Optical Internet solutions on the planet," Smith said.

According to Dell`Oro, Nortel Networks captured 54.3 percent of the second quarter 2000 US$1.77 billion DWDM market. In delivering long-haul DWDM solutions, Nortel Networks further extended its leadership by securing 53.9 percent market share, also three times higher than its nearest competitor. Dell`Oro`s figures confirm Nortel Networks` leadership in the DWDM metro arena with a 55.6 percent market share.

In the second quarter 2000 US$4.15 billion SONET/SDH market, Nortel Networks extended its lead with a 38.3 percent market share in the second quarter of 2000.

Nortel Networks` continued strong momentum in driving the high-performance Optical Internet rests on its leadership in speed, performance, reliability and economics of optical solutions, and on a laser-like focus on customer needs. To meet those needs, Nortel Networks focuses on designing and delivering the best end-to-end Optical Internet solutions, and on rapidly deploying increased manufacturing capabilities worldwide.

"We were first to bring 160 channels to market, first into the metro market, and first to show the capabilities of an 80 gigabits per second (gbps) system," Smith said. "We are able to attain these first-mover advantages by utilizing our vast experience in designing networks for hundreds of customers worldwide."

At Telecom `99 last October, Nortel Networks showed a scalable 40 to 80 gbps system capable of increasing capacity as high as 6.4 terabits per second through DWDM. In June 2000, Qwest Communications announced that its North American broadband network had broken the world Internet land speed record using the Nortel Networks OC-768 (40 gbps) global optical networking platform.

Nortel Networks` commitment to innovation is paralleled by its announced investments in optical manufacturing capacity. In May, Nortel Networks created a High Performance Optical Component Solutions business, bringing together its various optical components groups to create a global, high-performance optical components powerhouse.

In July, Nortel Networks announced a US$1.9 billion investment in optical manufacturing capabilities to more than double its global optical systems and components production capacity over the subsequent 18 months. This includes a US$1.2 billion investment in optical component production capacity in North America, the United Kingdom and Australia to increase Nortel Networks` leadership in strategic components, including lasers and high-speed microchips. This follows previously announced investments in optical production capacity totaling US$660 million.