Newbridge Dominates the Standards-Based DSL Market in Canada with 90 percent of Market Share
MAY 2, 2000 TORONTO, DSLCON CANADA (BOOTH 205)--Newbridge Networks (NYSE: NN; TSE: NNC) today reinforced its lead position in the Canadian standards-based digital subscriber line (DSL) market with the announcement that by its own estimates it currently owns 90 percent of the deployed emerging market. The Newbridge footprint in Canada now exceeds 140,000 ports including national deployment by incumbent local exchange carriers (ILECs) and competitive local exchange carriers (CLECs) as well as the introduction of innovative new services by growth oriented regionally-based providers. The breadth of service and market deployment reflects the strength and flexibility available from the Newbridge DSL solution.
The Canadian broadband access market has been aggressively targeted by cable companies. In a recent report by the Yankee Group, Canada claims 27 percent of the North American market for cable modems, a relative penetration rate three times greater than that of the entire North American market. This pressure has caused decisive action from service providers to make available a full suite of DSL services. Newbridge has played an active role in the development of this market by creating service oriented DSL solutions to give service providers a key competitive edge.
"Our DSL strategy enables our service provider partners to roll out competitive, high volume DSL-enabled services that are critical to complete against cable companies and other local exchange carriers. Offering additional access technologies allows our Canadian and global customers to extend the reach of their broadband networks to a large and bandwidth-hungry customer base," said Kevin Rankin, vice president of broadband copper, Newbridge Networks. "We're taking a service oriented approach to the broadband space and in doing so, Newbridge gives service providers new revenue-generating opportunities that allow them to compete and establish a more loyal customer base."
While strong in Canada, the Newbridge footprint extends beyond Canadian boundaries to reach 1.7 million xDSL subscribers worldwide including the United States, United Kingdom, Western Europe and Asia Pacific.
Newbridge DSL Customers
TELUS, Canada's second largest national incumbent carrier, is the market leader in DSL service deployment. Over the past two years TELUS has been deploying the Newbridge DSL solution because it provides the managed flexibility necessary to deliver high speed internet services to both residential customers and the more demanding business market. Value added business services include corporate remote access, local area network (LAN) interconnect and business Internet applications. TELUS is currently expanding its service area outside the Western provinces into Quebec and Ontario.
Aliant, a regionally-based incumbent carrier, extended its fibre backbone using Newbridge DSL. This allows them to offer viewers a full slate of TV channels, pay-per-view programming and video on demand, access to interactive multimedia applications, including high speed Internet access and e-mail -- all over copper lines. This innovative service essentially lessens the boundary between television and computers.
Newbridge is also establishing its presence in the business sector as a premier DSL supplier. AT&T Canada, the country's largest facilities-based competitive provider, has purchased Newbridge DSL to offer high speed Internet and corporate network access to businesses in Canada.
About the Newbridge DSL Solution
Newbridge first introduced DSL technology in May 1998. Responding to customer needs and overall market direction, Newbridge recently introduced a family of high density DSL line cards. These line cards include the 24-port ADSL card, the 32-port IDSL card and the 48-port MultiDSL card that allows remote soft provisioning to support 2B1Q SDSL, HDSL-2 and G.SHDSL symmetrical services. By taking advantage of the Newbridge 350 Integrated Versatile Services Node (IVSN) access platform, service providers can offer a rich selection of value-added services such as LAN interconnect, virtual private networks (VPNs), 56 kb/s and T1 replacement, and a series of legacy services without compromising quality of service.
About Newbridge Networks
Newbridge Networks designs, manufactures, markets and services wide area networking solutions for service providers in more than 100 countries. On February 23, 2000, Newbridge entered into a definitive agreement to be acquired by Alcatel, a world leader in end-to-end voice and data communications solutions systems. Alcatel's leadership in broadband access combined with the Newbridge leadership in ATM/MPLS/IP switched routing will make it one of the top players in the next-generation networking market with complete, end-to-end communication solutions. Current Newbridge customers include the world's 350 largest telecommunications service providers. The Company employs more than 6,000 people on six continents. News and information are available at www.newbridge.com.
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