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Nortel Offers New Ethernet Access Solution to Support Bandwidth-Hungry Users by Preventing Network Traffic Jams


Solution Provides Ultra High-Speed Internet for Homes and Businesses

TORONTO – Nortel * [NYSE/TSX: NT ] and LG-Nortel are introducing a new Ethernet Access solution to help service providers prevent bandwidth bottlenecks in the critical “first mile” of their networks. This will allow for faster and more reliable delivery of data between high-speed core networks and individual user access points. The Ethernet Access technology was developed by LG-Nortel, a joint venture of LG Electronics and Nortel.

Designed to clear up first mile network traffic jams, caused by bandwidth-hungry applications such as HD video, Nortel’s Ethernet Access solution is one of the industry’s first to use Wave Division Multiplexing Passive Optical Network (WDM-PON) architecture. This technology makes it possible to divide a single optical fiber into multiple wavelengths, each capable of carrying the same bandwidth that previously required an entire fiber. The approach powers the Internet to ultra-fast speeds to the first mile by giving each user their own wavelength delivering dedicated bandwidth straight to their home or business.

The dedicated bandwidth in Nortel’s Ethernet Access solution provides network users with more security over connections which are always available, and never stalled or slowed down by other traffic on the network. The solution also offers service provider future benefits with a foundation for moving forward, starting with speeds of 100 Mbps and easily scalable to add more bandwidth for future needs without having to change the infrastructure.

In the hyperconnected world, where the number and types of devices connected to networks is outpacing the number of people using them, consumers want to access such bandwidth-hungry services as HD video on demand quickly, without waiting hours for a download to complete. Today’s networks often fall short in supporting these major demands for bandwidth because the first mile connection from the network core to a user’s home or business is shared among many different users, causing network traffic jams, security issues and serious slowing of upload and download speeds, especially at certain times of day when Internet traffic is heavy.

“Think of the network’s bandwidth traffic as millions of cars on an ultra-fast highway,” said Peter MacKinnon , president and chairman, LG-Nortel. “Today, many ’cars’ get stuck in traffic jams on access ramps as they travel that first mile to enter the highway or as they travel to their final destination. Nortel’s Ethernet Access solution gives each car its own off and on ramp by dedicating a single wavelength for each user. The solution is fast and secure because it is not shared with anyone else.”

“Service providers are seeking more utility out of their deep-fiber access networks,” said Michael Howard, Infonetics Research. “PON systems can do this, however, today’s PON systems share bandwidth among many users and thus have painful bandwidth constrictions, whereas a WDM-PON can serve up 10 to 20 times the capacity with a dedicated wavelength to each destination, whether to home, building, or DSLAM. Consumers want a super-fast broadband network that can download music in seconds and movies in minutes, and carriers want backhaul facilities to carry residential and business traffic. Service providers can solve these problems with a simple, point-to-point Ethernet WDM-PON to meet the ever-growing demands for bandwidth from their customers.”

Nortel’s WDM-PON Ethernet Access solution offers operators a competitive edge over those using other PON technologies by allowing them to accelerate the deployment of fiber-to-the-home and fiber-to-the-building with a simple engineering and deployment model. The network performance is also symmetrical meaning that both the upload and download speeds are the same so it can effectively support multimedia applications like video-calling. This allows operators to broaden their portfolios and offer innovative new services that could result in increased Average Revenue Per User and greater customer loyalty.

Also announced today, Netherlands based service provider, UNET is using Nortel’s Ethernet Access solution to deliver fiber to homes and businesses across the country to support bandwidth hogging applications such as IPTV – particularly HDTV – and emerging applications such as multimedia conferencing, and even online karaoke sessions.

The new solution will be demonstrated at this year’s Broadband World Forum ** in Belgium from September 29 to October 1 in Nortel’s booth at 474.

About LG-Nortel

LG-Nortel is a joint venture of LG Electronics and Nortel. Established in 2005, LG-Nortel provides leading edge telecommunications equipment and network solutions, spanning wired and wireless technologies, to service provider and enterprise customers in Korea and around the world. LG-Nortel is also actively developing next generation solutions for global markets, with over 1,000 skilled R&D engineers currently focused on wireless broadband technology evolution and the development of powerful new product lines. For more information on LG-Nortel, visit **.

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.

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