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Are You Caught in the Internet Traffic Jam?


Experience 40G with Nortel’s New Online Demo

TORONTO – Ever tried to watch a video on the Internet and had it look more like a Technicolor snowstorm than the sports highlight, movie trailer or video of your best friend’s baby that you were expecting? If so, you have been the victim of packet loss. Want to stop being a victim? Check out Experience 40G , a virtual demonstration by Nortel* [NYSE/TSX: NT ], to see what video looks like when packet loss occurs and what it looks like over 40G , a solution that helps makes packet loss a thing of the past.

* Packet Loss can occur when there is simply too much data being passed over the Internet at one time. The network congestion slows down response times and causes packets of information to take longer to get to you or to be dropped off the Internet completely. Since a video is essentially a series of packets, when some packets get delayed or lost to network congestion, it leads to a viewing experience that’s anything from a little bit choppy to downright unwatchable. This also affects the interactive aspect of VoIP calls making them more like walkie-talkies – where only one person can talk at a time – than telephone conversations.

* One Answer to Packet Loss is to update today’s fiber-optic networks – the majority of which are running at 10G – to 40G with an optical networking solution invented within Nortel’s Metro Ethernet Networks business. With 40G packet loss due to congestion would no longer be a significant problem at current traffic levels. A 40G solution can handle four times more Internet traffic than today’s 10G networks. This means crystal clear video and audio.

* Experience 40G shows Internet traffic statistics from around the world and how it affects the quality of streaming video. For example, you can see how annoying it would have been to try to watch your favorite YouTube video if you were experiencing packet loss of just 2 percent, which was the average packet loss in North America on September 15, 2008, or a more severe loss of 9 percent which was the average loss in Asia during the same time period. You can then check out how different the experience would have been over 40G.

Here’s what Philippe Morin , president of Metro Ethernet Networks at Nortel, says about the video bandwidth hog and its packet loss victims:

“The irony of our obsession with online video is that video itself is the bandwidth hog that leads to network congestion and packet loss that affects video quality. In a sense, online video is its own worst enemy because watching more video leads to degradation in the quality of the video we are able to watch because of the incredible load they put on networks. Nortel’s 40G solution breaks this vicious circle by quadrupling network capacity. Quadrupling capacity leads to less congestion, faster Internet transactions, and higher quality video.”

“Our intense interest in online video is coupled with an increasing trend towards HD broadcasting which requires five to nine times the bandwidth of regular video. To meet this demand for content and desire for quality, networks must be adapted to support more traffic. 40G allows service providers to make this upgrade in the most cost-effective way possible because it uses the same fiber that their networks currently run on, just more efficiently. This means fewer victims of packet loss.”

About Nortel

Nortel is a recognized leader in delivering communications capabilities that make the promise of Business Made Simple a reality for our customers. Our next-generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel’s technologies are designed to help eliminate today’s barriers to efficiency, speed and performance by simplifying networks and connecting people to the information they need, when they need it. Nortel does business in more than 150 countries around the world. For more information, visit Nortel on the Web at . For the latest Nortel news, visit .

Certain statements in this press release may contain words such as “could”, “expects”, “may”, “anticipates”, “believes”, “intends”, “estimates”, “targets”, “envisions”, “seeks” and other similar language and are considered forward-looking statements or information under applicable securities legislation. These statements are based on Nortel’s current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which Nortel operates. These statements are subject to important assumptions, risks and uncertainties, which are difficult to predict and the actual outcome may be materially different from those contemplated in forward-looking statements. For additional information with respect to certain of these and other factors, see Nortel’s Annual Report on Form10-K, Quarterly Reports on Form 10-Q and other securities filings 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.

*Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks.


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