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Nortel Unveils Industry’s First Commercially Available 100G Optical Solution


Verizon First Service Provider to Deploy 100G for Live In-Service Customer Network

TORONTO - Nortel* [OTC: NRTLQ] today unveiled the industry’s first commercially available 100G solution and announced that Verizon has deployed the solution in their live customer network in Europe.

Nortel’s 100G solution uses unique technology that allows service providers to increase the bandwidth of today’s typical 10G infrastructure by ten times without the need to rip and replace major parts of the network. This removes a significant cost barrier for today’s service providers with constrained CAPEX budgets.

Analyst firm Ovum estimates that global demand for 100G line side DWDM transponders will grow rapidly over the next five years, reaching US$455 million by 2014.

“Nortel’s 100G optical solution uses groundbreaking technology that allows service providers to meet the demands that high bandwidth applications like HD video on demand, online gaming and cloud computing are putting on their network,” said Philippe Morin, president, Metro Ethernet Networks, Nortel. “Our 100G solution is the result of years of dedicated research and development into this cutting-edge technology, and builds on two decades of innovation leadership in the optical industry.”

Using Nortel’s solution, Verizon has today become the world’s first service provider to deploy 100G technology in a live commercial network. Using its existing network, Verizon is carrying live enterprise customer Private IP traffic over a 100G wavelength on an 893km link between Paris and Frankfurt. Even more impressive is the fact that the 100G wavelength was simply added alongside in-service 10G wavelengths in the same fiber.

“This 100G accomplishment is a milestone for the communications and optical industries, and is the result of leveraging the strengths of Verizon and Nortel,” said Mark Wegleitner, senior vice president of technology at Verizon. “This type of cooperation and vision results in innovative and progressive solutions and will continue to be a requirement to successfully meet the increasing bandwidth demands of the future.”

Nortel’s 100G solution is based on technologies such as coherent detection, DP QPSK modulation, and advanced electronic digital signal processing techniques, all of which Nortel is the first and only vendor to successfully commercialize to date. More than 50 service providers and operators worldwide already rely on these technologies in live deployments of Nortel’s 40G solution, which has been generally available since May 2008. In addition to Verizon’s industry-first live 100G deployment, Nortel has previously conducted eight successful trials of its 100G solution with service providers around the world.

“While other vendors rush to develop advanced 100G optical transport technologies, Nortel’s 100G solution has been tested and proven with some of the world’s largest service providers, including Verizon,” said Ron Kline, principal analyst, Network Infrastructure, Ovum. “Nortel continues to push the envelope with 100G optical transmission, keeping its technology edge in high-capacity transport.”

Nortel’s 100G solution is part of its 40G/100G Adaptive Optical Engine family of products, with two compact 100G cards elegantly streamlined within Nortel’s flagship Optical Multiservice Edge 6500 platform . Nortel’s Common Photonic Layer line system can also be used as part of the 100G solution for in-line amplification and wavelength switching.

True 100G transmission

Nortel’s 100G solution provides for true 100G transmission in a format that can coexist over the same fiber infrastructure with today’s 10G and 40G networks. A Nortel 100G line card transmits the full 112Gbps payload within a single ITU ** standard 50GHz-spaced channel, allowing for a full 88 wavelengths over a single fiber.

Deployable on any fiber, reaching distances of 1,000km+

Optical transmission rates above 10G significantly increase signal distortion caused by fiber impairments, greatly reducing transmission distances possible before the need to regenerate the signal. To solve this problem, Nortel’s 100G solution uses Dual Polarization Quadrature Phase Shift Keying (DP QPSK) with coherent optical frequency division multiplexing. DP QPSK is a modulation format that effectively sends four times as much information as traditional optical transmission of the same speed. When paired with a coherent receiver that can detect this modulation format, the optical transmission rate can be slowed, reducing the effects of signal distortion such as Chromatic Dispersion (CD) and Polarization Mode Dispersion (PMD). Any remaining signal distortion due to dispersion is eliminated by integrated electronic dispersion compensation technology that adjusts for this distortion at the receiver side of the transmission.

By using these advanced signal processing technologies, Nortel’s solution can transmit a 100G signal, even over impaired fiber that can not be used for 10G transmission, without the need for separate optical CD and PMD compensators.

A simple and cost-effective evolution from 10G and 40G to 100G

Nortel’s 100G solution provides significant economic benefits through the reduction or elimination of a variety of network equipment such as amplifiers, regenerators, and dispersion and PMD compensators. This reduces the cost and complexity of deployment and creates the true value of Nortel’s 100G solution by allowing for a simple “plug and play” installation over existing 10G and 40G fiber networks with little or no need for network re-engineering. In addition, service providers with existing 10G networks from other vendors can increase network capacity to 100G by “bookending” their existing 10G optical infrastructure with Nortel’s 100G solution. This unique application has been tested in a live network trial for Nortel’s 100G solution and deployed by multiple service providers for Nortel’s 40G solution.

About Nortel

Nortel Metro Ethernet Networks (MEN) delivers communications solutions that help service providers and enterprises worldwide meet the ever-growing demand for bandwidth and interconnectivity. Our innovative technologies improve efficiency and performance by simplifying networks and increasing their capacity. MEN’s intelligent packet optical solutions offer graceful migration to a next-generation packet optimized network that converges multiple services over a common optical core to increase agility, reduce costs and streamline service delivery. Our industry-leading adaptive optical solutions enable high-capacity 40G and 100G transmission over existing fiber without complex network reengineering, expensive overlays or added compensation equipment. Today, Nortel Metro Ethernet Networks solutions are deployed in more than 1,000 customer networks in over 65 countries. 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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