Nortel Networks Extends Market Lead in North American Optical Internet,RHK Says
Industry Researcher Raises Market Forecast, Predicts Strong Optical
Growth Through 2004
BOSTON, Oct. 30 /PRNewswire/ - Nortel Networks (NYSE/TSE: NT) continues to expand its industry leadership position and share of the North American optical transport market according to the latest figures released by RHK, a leading telecommunications market research and consulting firm.
RHK ranks Nortel Networks number one in the estimated US$20.6 billion optical transport market in North America - including DWDM, SONET/SDH and digital cross connects - with a total market share of 38 percent, up from 29 percent in 1999. This includes a 57 percent market share in DWDM solutions, an increase of 20 percent in a market RHK expects to grow 126 percent year over year.
RHK has also increased its optical transport market growth forecast. RHK now expects a compound annual growth rate of 35.1 percent between 1999 and 2003, compared with the previous forecast of 31.9 percent. RHK forecasts growth of 42.2 percent next year as the optical transport market increases to a record US$29.3 billion.
The RHK numbers are based on actual revenues through the third quarter of this year and RHK's projections for the balance of the year. RHK will present its report on the North American optical transport market this week at the RHK STARTRAX2000 conference in Palm Springs, Calif.
"As indicated in our forecast, we see no signs of a slow down in the optical transport market, and we expect carriers and service providers to continue spending on high-capacity optical transport equipment for their networks," said Brian Van Steen, a senior analyst at RHK. "In fact, we have increased our forecasts from last year. Nortel Networks leadership of the DWDM and SONET markets is apparent in this year's forecast, and we predict that Nortel
Networks will continue to benefit from this burgeoning demand for optical networking gear."
"Nortel Networks has experienced record growth in high-performance Optical Internet solutions and continues to gain market share," said Don Smith, president, Optical Internet, Nortel Networks. "We've increased our overall optical transport and DWDM market share by nine percent and 20 percent respectively. The RHK rankings support what we hear from customers every day - that our Optical Internet solutions are the most reliable and robust in the
industry."
RHK also predicts that the market for optical transport equipment will reach US$45.4 billion by 2004, and that spending on DWDM equipment will overtake spending on SONET equipment in 2002.
Nortel Networks has announced this year major optical networking deals collectively valued at an estimated US$7.5 billion with Global Crossing, British Telecom, WorldCom, Williams Communications and Aerie Networks.
Nortel Networks is a global Internet and communications leader with capabilities spanning Optical, Wireless, Local Internet and eBusiness. The Company had 1999 U.S. GAAP revenues of US$21.3 billion and serves carrier, service provider and enterprise customers globally. Today, Nortel Networks is creating a high-performance Internet that is more reliable and faster than ever before. It is redefining the economics and quality of networking and the
Internet, promising a new era of collaboration, communications and commerce. Visit us at www.nortelnetworks.com.
Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include, among other things: the impact of price and product competition; the dependence on new product development; the impact of rapid
technological and market change; the ability of Nortel Networks to make acquisitions and/or integrate the operations and technologies of acquired businesses in an effective manner; general industry and market conditions and growth rates; international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; the impact of consolidations in the telecommunications
industry, the uncertainties of the Internet; stock market volatility; the ability of Nortel Networks to recruit and retain qualified employees; and the impact of increased provision of customer financing by Nortel Networks. For additional information with respect to certain of these and other factors, see the reports filed by Nortel Networks with the United States Securities and Exchange Commission. Nortel Networks disclaims any intention or
obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE Nortel Networks Corporation
CO: Nortel Networks Corporation
ST: Massachusetts
IN: TLS MLM
SU:
10/30/2000 08:02 EST prnewswire.com |
