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Nortel to Focus on Next-Gen Metro Ethernet Networks
[May 17, 2006]

Nortel to Focus on Next-Gen Metro Ethernet Networks


Associate Editor
 
In an era of rapidly increasing technology and the simultaneous desire for increased performance and access to products and services — especially with the evolution of IP Multimedia Subsystem (News - Alert) and IPTV (News - Alert) technologies — service providers are up against tremendous challenges in meeting bandwidth requirements to deliver these next-generation services.


 
Naturally, in addition to satisfying subscriber demands for new and more personalized real-time services, service provides also stand to benefit from the addition of IMS-enabled services and video applications, which serve to create new revenue streams, increase presence in a competitive landscape, and increase customer retention.

 
To address that specific need, Nortel (News - Alert) President and CEO Mike Zafirovski announced the company’s new strategic focus on driving market share in Ethernet networks essential to handling the impending increase in bandwidth-intensive applications, especially video services.  The initiative — Metro Ethernet Networks — is designed to provide innovative Ethernet solutions for delivering quality, reliability, and security.
 
“Nortel’s future depends on our continued leadership in innovation and, with our new Metro Ethernet Networks, we’re bringing our best technologies together, backed by an initial incremental investment in R&D,” said Zafirovski.
 
Nortel’s Metro Ethernet Networks business strategy is based on the increasing reliance on Ethernet as the standard protocol for both LAN and WAN communications to break the bandwidth bottleneck between high-speed fiber-optic networks and metro networks serving consumers and business.  In addition, Nortel’s Metro Ethernet Networks will focus on wireless capabilities, using its Metro Ethernet solution to ensure such applications as high-bandwidth video provide real-time speed and quality to mobile devices.
 
Nortel already has a proven focus packet optical network convergence, through which it is enhancing provider networks to improve consistence in delivery of voice, video, and data service.  

Numerous entities already depend on Nortel’s converged packet optical solutions for driving commerce globally and supporting corporate security measures — including 18 of the world’s 20 largest banks and the  and the world’s busiest trading floor.  More than 200,000 students in some 250 buildings in the Philadelphia School District see the benefits of Nortel’s solution.  In addition more than 50 service providers have launched services using Nortel optical solutions to ensure consistent and efficient delivery of applications and services to their customers. 
 
The Metro Ethernet Networks program is to be spearheaded by Philippe Morin, who, “in his previous position as general manager, Optical, grew [that] business approximately 24 percent last year to, US$1.2 billion,” added Zafirovski.  “I have every confidence he will build on that leadership and momentum through Metro Ethernet Networks.”
 
Erik Linask is Associate Editor of INTERNET TELEPHONY. Most recently, he was Managing Editor at Global Custodian, an international securities services publication. To see more of his articles, please visit Erik Linask’s columnist page.

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