Nortel Networks unveils new platform, transforming optical networking to speed delivery of value-rich services.

Building on its leadership in delivering next generation optical networking technology, Nortel Networks (NYSE:NT)(TSX:NT) today introduced the Common Photonic Layer, a new DWDM (dense wavelength division multiplexing) optical transport platform that is designed to transform and converge networks across service provider, enterprise and cable MSO (multiservice operators) markets. This transformation will enable customers to minimize operational and capital costs, sustain profitability and accelerate the delivery of value-rich services.

"Nortel Networks has long been a leading global supplier of DWDM systems," said Sterling Perrin, senior research analyst, Optical Networks, IDC. "With Common Photonic Layer, Nortel Networks is taking DWDM technology to the next level of modularity and flexibility. This new solution should appeal to cable MSOs, service providers and enterprises globally, where network simplicity coupled with low-cost capacity can be a competitive advantage."

SURFnet, a world-leading education and research network organization based in the Netherlands, selected Nortel Networks Common Photonic Layer to simplify its network and achieve dramatic cost savings.

"To build SURFnet6, the next generation educational and research network in The Netherlands, we selected Nortel Networks technology, including Nortel Networks Common Photonic Layer solution, because it allows us to switch lightpaths in a flexible and dynamic way," said Kees Neggers, managing director, SURFnet. "This technology transforms a patchwork of fibers into a state-of-the-art optical network with a wealth of intelligent features."

Several service provider and cable MSO customers are trialing this platform with planned field deployments starting in the summer of 2004.

Backed by its extensive experience and leadership in DWDM technology, Nortel Networks developed the Common Photonic Layer to deliver significant simplification of DWDM optical line systems by eliminating the need for expensive circuitry found in today's line systems. Common Photonic Layer also delivers automation and intelligence in the optical line system in order to accelerate new system and service turn-up of reliable bandwidth needed for value rich services like next generation voice over IP (Internet Protocol), residential video, and optical broadband services.

The Common Photonic Layer simplifies network planning, engineering, configuration and deployment of metropolitan, regional and long-haul network applications by leveraging a series of modular building blocks designed on a common platform. As a result of these efficiencies, Nortel Networks internal business cases show that customers can realize significant savings, including up to 50 percent savings in footprint and power, up to 40 percent time savings on system activation, and up to 93 percent savings in system optimization.

"Nortel Networks developed the Common Photonic Layer to drive growth throughout our customers' businesses and enable them to accommodate the rollout of new profitable services," said Philippe Morin, general manager, Optical Networks, Nortel Networks. "By using the Common Photonic Layer in conjunction with our broad optical networks portfolio, our customers can evolve their networks to keep pace with increased bandwidth demands worldwide."

According to Dell'Oro Group (February 2004), the DWDM market will experience steady growth through 2007. Nortel Networks holds the #1 position in the global metro and long haul DWDM market for 2003, according to Dell'Oro.