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Next Generation Optical Solutions from Nortel Designed to Increase Service Velocity, Network Intelligence

  • 07 June, 2005 15:13

<p>New Features Can Help Service Providers, Cable Operators Reduce Operating Costs by Up to 55 Percent</p>
<p>TORONTO – Nortel* [NYSE/TSX: NT] introduced advanced, next generation features for its optical network solutions that make it possible for service providers and cable operators to more rapidly and affordably deliver dynamic, high-bandwidth content and application-based services such as video on demand.</p>
<p>These new features address customers’ increasing requirements for more adaptive, intelligent, all - optical networks, and represent a significant step forward in addressing operational expense reduction and service delivery velocity requirements for the deployment of dynamic ‘on demand’ and bandwidth intensive services. Nortel estimates that its new features can result in a savings of up to 55 percent in operating costs for service providers.**</p>
<p>“Integration of these next generation features into our optical solutions enables remote delivery of any wavelength with any service to any location at any time without the need for intensive optical planning or engineering,” said Philippe Morin, general manager, Optical Networks, Nortel. “We are excited to help service providers and cable operators implement an intelligent, adaptive optical network to support introduction of the disruptive new services their customers demand.”</p>
<p>New core features to Nortel’s optical portfolio include enhanced Reconfigurable Optical Add Drop Multiplexing (eROADM) functionality to enable reduced costs associated with redirecting wavelengths, and electronic Dynamically Compensating Optics (eDCO) to extend wavelength distances while enabling reduced network planning and engineering costs. Both of these new features are supported by the Domain Optical Controller (DOC), an end-to-end intelligent provisioning and management software platform.</p>
<p>The eROADM is a functional module included in Nortel’s 40-Gbps ready Common Photonic Layer (CPL) platform, employing wavelength-selective switching (WSS) to enable all optical switching and redirection of a wavelength to up to five different rings in the network. This limits the need for costly fiber interconnection points with optical to electrical to optical (OEO) conversions, and creates more simplicity and flexibility in managing wavelengths across the network.</p>
<p>Nortel’s new eDCO functionality, first introduced on Optical Multiservice Edge (OME) 6500, complements and enables increased benefits of the eROADM module by providing increased automation when deploying new or redirected optical wavelengths. Traditionally, redirecting individual wavelengths to a new network path required extensive planning and re-engineering of the optical line to ensure proper power levels and modulation adjusted for the new path. eDCO capabilities in OME 6500 enable the platform to dynamically adjust the modulation of individual wavelengths when they are redirected to a new path, over a different fiber type, or over a longer distance. In addition, eDCO enables fiber spans of up to 2,000 kilometers as well as tunable lasers for reduced sparing requirements.</p>
<p>Deployed in more than 1,000 customer networks in 65 countries, Nortel’s end-to-end optical networking portfolio includes next generation SONET/SDH, optical switching, wave division multiplexing and Optical Ethernet products. Nortel has deployed more than 290,000 optical network elements globally in order to meet the needs of customers for applications as diverse as healthcare, finance, utilities, and education.</p>
<p>About Nortel
Nortel is a recognized leader in delivering communications capabilities that enhance the human experience, ignite and power global commerce, and secure and protect the world’s most critical information. Serving both service provider and enterprise customers, Nortel delivers innovative technology solutions encompassing end-to-end broadband, Voice over IP, multimedia services and applications, and wireless broadband designed to help people solve the world’s greatest challenges. Nortel does business in more than 150 countries. For more information, visit Nortel on the Web at www.nortel.com. For the latest Nortel news, visit www.nortel.com/news.</p>
<p>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 outcome of regulatory and criminal investigations and civil litigation actions related to Nortel’s restatements and the impact any resulting legal judgments, settlements, penalties and expenses could have on Nortel’s results of operations, financial condition and liquidity, and any related potential dilution of Nortel’s common shares; the findings of Nortel’s independent review and implementation of recommended remedial measures; the outcome of the independent review with respect to revenues for specific identified transactions, which review will have a particular emphasis on the underlying conduct that led to the initial recognition of these revenues; the restatement or revisions of Nortel’s previously announced or filed financial results and resulting negative publicity; the existence of material weaknesses in Nortel’s internal control over financial reporting and the conclusion of Nortel’s management and independent auditor that Nortel’s internal control over financial reporting is ineffective, which could continue to impact Nortel’s ability to report its results of operations and financial condition accurately and in a timely manner; the impact of Nortel’s and NNL’s failure to timely file their financial statements and related periodic reports, including breach of its support facility and public debt obligations and Nortel’s inability to access its shelf registration statement filed with the United States Securities and Exchange Commission (“SEC”); ongoing SEC reviews, which may result in changes to our public filings; the potential delisting or suspension of Nortel’s and NNL’s publicly traded securities; the impact of management changes, including the termination for cause of Nortel’s former CEO, CFO and Controller in April 2004; the sufficiency of Nortel’s restructuring activities, including the work plan announced on August 19, 2004 as updated on September 30, 2004 and December 14, 2004, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions; cautious or reduced spending by Nortel’s customers; increased consolidation among Nortel’s customers and the loss of customers in certain markets; fluctuations in Nortel’s operating results and general industry, economic and market conditions and growth rates; fluctuations in Nortel’s cash flow, level of outstanding debt and current debt ratings; Nortel’s monitoring of the capital markets for opportunities to improve its capital structure and financial flexibility; Nortel’s ability to recruit and retain qualified employees; the use of cash collateral to support Nortel’s normal course business activities; the dependence on Nortel’s subsidiaries for funding; the impact of Nortel’s defined benefit plans and deferred tax assets on results of operations and Nortel’s cash flow; the adverse resolution of class actions, litigation in the ordinary course of business, intellectual property disputes and similar matters; Nortel’s dependence on new product development and its ability to predict market demand for particular products; Nortel’s ability to integrate the operations and technologies of acquired businesses in an effective manner; the impact of rapid technological and market change; the impact of price and product competition; barriers to international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; the impact of rationalization and consolidation in the telecommunications industry; changes in regulation of the Internet; the impact of the credit risks of Nortel’s customers and the impact of customer financing and commitments; stock market volatility generally and as a result of acceleration of the settlement date or early settlement, which is currently not available, of Nortel’s forward purchase contracts; negative developments associated with Nortel’s supply contracts and contract manufacturing agreements, including as a result of using a sole supplier for a key component of certain Optical Networks solutions; the impact of Nortel’s supply and outsourcing contracts that contain delivery and installation provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; and the future success of Nortel’s strategic alliances. For additional information with respect to certain of these and other factors, see the most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed by Nortel with the SEC. Unless otherwise required by applicable securities laws, Nortel disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.</p>
<p>*Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks.</p>
<p>** Based on a Nortel network planning study conducted using actual customer data for a five year carrier network build. Business case represents potential results based on certain assumptions.</p>
<p>For further information:</p>
<p>Elizabeth Lovett
Nortel
Tel: +612 8870 5625
elovett@nortel.com</p>
<p>Guy Lerner
Watterson Marketing Communications
Tel: +612 9437 6122
guy.lerner@watterson.com.au</p>

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