In a move to further expand its rapid growth plans, Nortel Networks has announced it will invest an additional $US260 million in its optical-networking and components business.
The investment will come with the creation of 3400 new jobs globally, Nortel president and chief executive officer, John Roth, announced at a press conference. "The investment comes because we've seen increased demand for our product," Roth said.
Of the total investment, $186 million will be spent in Canada, where Nortel's headquarters are based, and $64 million will be spent in England and Northern Ireland, with the final $10 million to be disbursed among it other global operations, reported Roth.
This cash outlay comes on top of a $400 million investment in fiber-optical networking that Nortel announced last November, which created 5000 jobs within the company.
"This is a 30 per cent expansion over and above the expansion announced in November. Our expansion is very, very important as everything moves towards the optical Internet," Roth said.
Nortel has also signed a patent cross-licensing agreement with network equipment vendor Tellabs Operations, giving the companies rights to each other's patent portfolios, including optical-networking patents, Roth said.
Nortel declined to disclose the financial details of the agreement except to say that Nortel will receive royalties.
Nortel will enter into cross-licensing agreements with other companies in the future, Roth said.