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Nortel sets Optical Ethernet leadership agenda to transform metro networks

Johannesburg, 14 May 2001

Nortel Networks unveiled its agenda to quickly and easily transform metropolitan networks into fast, simple and reliable Optical Ethernet networks, with the potential for increased profitability for service providers, carriers and enterprises at Networld + Interop 2001 in Las Vegas.

The announcements also include a new customer win with Guangdong Unicom and major product enhancements to the Passport 8600.

Nortel Networks` strategy to enable network transformation using Optical Ethernet offers customers an alternative to expensive and inefficient computing models. This strategy is built on three key technologies:

10-Gigabit Ethernet (10-GE) will be an efficient, low-cost way to bring 10-Gigabit traffic into metro networks, leveraging the benefits of Ethernet.

Nortel Networks is a founding member of the 10-Gigabit Ethernet Alliance and a member of the IEEE 802.3ae working group for WAN-compatible 10-GE. The 10-Gigabit Ethernet interface announced today on Passport 8600, combined with the 10-GE capabilities on Nortel Networks metro optical products, will deliver an end-to-end, 10-GE metro network.

Resilient Packet Ring (RPR) leverages the large installed base of optical rings in the metro to deliver data efficiency and optical reliability and manageability. Nortel Networks RPR technology has been deployed in service provider networks for more than a year, with more than 1000 shipments to-date.

The company, as a founding member of the Resilient Packet Ring Alliance and the IEEE 802.17 working group for Resilient Packet Rings, has submitted its implementation as a proposal for the final standard.

Dense Wavelength Division Multiplexing (DWDM) dramatically increases the amount of services that can run over the fiber infrastructure. Nortel Networks led the metro DWDM market with 54.8 percent market share in the first quarter of 2001 (the Dell`Oro Group) and was the first company to introduce a ring-based, open-optical DWDM system with its OPTera Metro 5000 Multiservice Platforms.

Leveraging these technologies, Nortel Networks continues to set industry standards for speed, simplicity and reliability. These three key parameters are essential for carriers, service providers and enterprises seeking to fully leverage the benefits of Optical Ethernet -- reduced time-to-service, decreased networking and computing costs, and enhanced potential for profitability.

"The metropolitan network is `ground zero` for the world wide wait," said Sirshem Moodley, Technical Operations Officer, Nortel Networks. "Today`s congested and complex metropolitan networks lead to an enterprise computing model that is expensive and inefficient.

"Nortel Networks is merging its Optical and Ethernet leadership to set the agenda for eliminating the metro bottleneck with Optical Ethernet solutions that can enable a whole new network-centric computing model. CIOs can reduce costs in network connections, equipment and systems management. More importantly, they can dramatically improve productivity for all users in the company by enabling faster and greater access to data and applications," Moodley added.

For service providers, Optical Ethernet enables new, high-value services, including enterprise outsourcing and hosting services that can efficiently and cost-effectively drive higher return on customer relationships. Today, Nortel Networks Optical Ethernet solutions are in service in 12 metropolitan networks and in trial in another 45 networks around the world. Nortel Networks` newest customer, Guangdong Unicom, which serves one of the fastest growing and most advanced regions in China, is deploying Nortel Networks` Optical Ethernet solution to provide high-speed Internet and global communications connectivity to businesses throughout the Guangdong Province. Guangdong Unicom also will be a lead customer to trial the 10-GE compatible Passport 8600 product launched today by Nortel Networks.

"In five years, 30% of high-speed MAN/WAN access at two megabits per second and above will be across Optical Ethernet connections. Companies that can deliver end-to-end Optical Ethernet solutions to their customers will lead the way in eliminating the bottleneck that exists in metropolitan networks today," said Mark Fabbi, vice president and research director with Gartner Group.

For more information visit www.nortelnetworks.com

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Editorial contacts

Vanessa Elliot
Fleishman-Hillard Vallun Wilkins
(011) 548 2000
elliotv@fleishman.co.za
Sirshem Moodley
Nortel Networks
(011) 808 4000
smoodley@nortelnetworks.com