Nortel Powers Up China's Electric Power Industry with Leading-Edge Optical, Data Solutions
Further Consolidates Leadership Position in Country's Power Sector with Six New Customer Deployments
BEIJING –Six power companies and plants across North, Central and East China are deploying reliable and secure optical and data solutions from Nortel* [NYSE/TSX: NT] to deliver cost-effective, advanced communication services like real-time power control data management, high-speed Internet access and multimedia applications. The deployments further consolidate Nortel's leadership position in China's power industry.
These new customer deployments include Central China Power Group (CCPG); Jiangxi Power Company, Jiangxi Province; Hangzhou Power Company, Zhejiang Province; Baoding Power Company; Tangshan Power Company; and Tangshan Power Plant, Hebei Province.
"Over the years, we have been supporting China's power industry in addressing market challenges by offering the bandwidth, reliability and security required for protecting the most critical information," said Stephen Tsui, president, Enterprise Networks, Greater China, Nortel. "These deployments are yet another clear demonstration of our data and optical networking capabilities meeting the stringent needs of the power industry."
China's power industry has become increasingly competitive over the past three years as a result of government-initiated structural reforms and China's entry into the World Trade Organization (WTO). Power companies, faced with the pressure of competition, are looking to transform their communications infrastructure to boost efficiency and productivity, which has created a significant demand for high-performance, cost-effective networking solutions.
Using Nortel's Optical Metro 3500 Multiservice Platforms with Resilient Packet Ring (RPR) technology and Optical Metro 4150 STM-4 SDH solutions, CCPG has built the largest RPR-enabled optical transport network in the country's power sector to converge TDM private line and IP broadband data services onto a single infrastructure. The network, to be shared between all CCPG substations in Central China, plays a key role in supporting the transmission of mission-critical voice and data traffic for power grid operation.
Nortel has supplied the leading-edge Optical Multiservice Edge (OME) 6500 to Jiangxi Power to expand its backbone transmission network. Nortel's optical convergence platform, the OME 6500, effectively enables Jiangxi Power to simplify its network and drive down deployment costs, while providing it with the scalability and flexibility to support a broad mix of voice and data services today and into the future.
Hangzhou Power selected Nortel's Optical Metro 4000 series to expand its transmission backbone. The expansion, once completed, is expected to position the company to launch new, high-bandwidth applications to improve employee collaboration and information sharing in a cost-effective manner.
In Hebei Province, the Baoding and Tangshan Power Companies have each selected Nortel Passport* 8600 Routing Switches to upgrade their local area networks (LAN). In addition, Nortel has expanded the wide area network (WAN) of Tangshan Power Plant with Nortel Passport 7400 Multiservice Switches to provide a secure and reliable platform for multiple services, including voice, real-time power control and monitoring applications, office automation, and management information systems (MIS).
Nortel is a leading provider of utility and energy solutions worldwide, leveraging expertise in new technologies like IP telephony, Optical Ethernet, and advanced multiservice switching. In China, Nortel has a long and proud history of providing enterprise information networking across a broad range of industries. In addition to utilities and energy, Nortel has been supplying secure and reliable solutions to educational, financial and government institutions.
Nortel was the leader in the overall optical transport equipment market for five consecutive years as of February 2004, according to the Dell'Oro Group. Nortel was also #1 in worldwide market share for Ethernet Metro WDM and #1 in Ethernet Multi Service Provisioning Platforms in 2003, according to IDC.
Nortel has been the global revenue market share leader in multiservice switching for 10 consecutive quarters as of fourth quarter 2003, according to the Dell'Oro Group. With more than 40,000 systems deployed in 1,500 customer networks globally, Nortel's Passport family of multiservice switches has proven field experience in delivering reliability.
About Nortel
Nortel is a recognized leader in delivering communications capabilities that enhance the human experience, ignite and power global commerce, and secure and protect the world's most critical information. Serving both service provider and enterprise customers, Nortel delivers innovative technology solutions encompassing end-to-end broadband, Voice over IP, multimedia services and applications, and wireless broadband designed to help people solve the world's greatest challenges. Nortel does business in more than 150 countries. For more information, visit Nortel on the Web at www.nortel.com. For the latest Nortel news, visit www.nortel.com/news.
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 outcome of Nortel’s independent review and planned restatement or revisions of its previously announced or filed financial results; the resolution of the accounting issues announced on November 11, 2004, including the outcome of discussions with the United States Securities and Exchange Commission (SEC); the impact of the management changes announced on April 28, 2004 and August 19, 2004; the impact of the inability to meet Nortel’s filing obligations on support facilities and public debt obligations; any potential delisting or suspension of the Company’s or NNL’s securities; the adverse resolution of litigation, investigations, intellectual property disputes and similar matters; the sufficiency of Nortel’s restructuring activities, including the work plan announced on August 19, 2004 as updated on September 30, 2004, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions; cautious or reduced spending by Nortel’s customers; fluctuations in Nortel’s operating results and general industry, economic and market conditions and growth rates; the communication by Nortel’s auditors of the existence of material weaknesses in internal controls; Nortel’s ability to recruit and retain qualified employees; fluctuations in Nortel’s cash flow, level of outstanding debt and current debt ratings; the use of cash collateral to support Nortel’s normal course business activities; the dependence on Nortel’s subsidiaries for funding; the impact of Nortel’s defined benefit plans and deferred tax assets on results of operations and Nortel’s cash flows; Nortel’s dependence on new product development and its ability to predict market demand for particular products; Nortel’s ability to integrate the operations and technologies of acquired businesses in an effective manner; the impact of rapid technological and market change; the impact of price and product competition; barriers to international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; the impact of rationalization in the telecommunications industry; changes in regulation of the Internet; the impact of the credit risks of Nortel’s customers and the impact of customer financing and commitments; stock market volatility generally and as a result of acceleration of the settlement date or early settlement of Nortel’s purchase contracts; the impact of Nortel’s supply and outsourcing contracts that contain delivery and installation provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; and the future success of Nortel’s strategic alliances. For additional information with respect to certain of these and other factors, see the most recent Form 10-Q/A and Form 10-K/A filed by Nortel 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.
*Nortel, the Nortel logo, the Globemark and Passport are trademarks of Nortel Networks.
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Nortel
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