PLDT, SMART Select Nortel for Major Network Expansions
Increased Capacity, Bandwidth to Meet Demand for Voice, Data Services
MANILA, Philippines – Philippines Long Distance Telephone Company (PLDT), the country's leading telecommunications provider, and its subsidiary Smart Communications (SMART), the Philippines' top mobile operator, have selected Nortel* [NYSE/TSX:NT] to implement network expansions to meet demand for voice and data services.
PLDT is undertaking the sixth expansion of its 10 Gigabit dense wavelength division multiplexing (DWDM) Domestic Fiber Optic Network (DFON) using Nortel optical solutions. This latest expansion in DFON's transport infrastructure will further increase capacity and bandwidth to carry accelerating data and voice traffic. A significant portion of this capacity will be allocated to SMART to meet its growing transport needs.
In a separate project designed to address the evolving capacity requirements of SMART's rapidly increasing Global System for Mobile Communications (GSM) subscriber base, Nortel will also expand the wireless operator's optical infrastructure to upgrade the Loop6 portion of its metro Manila network.
"We have chosen our incumbent optical equipment provider, Nortel, to implement this latest DFON expansion," said George Lim, senior vice president, PLDT. "Since DFON is based on Nortel's DWDM optical technology, the company can deliver faster implementation, provide a single network management system, and enable reduced operational costs, since our operations personnel are already familiar with Nortel equipment."
"We are very pleased with this vote of confidence in our optical portfolio by PLDT and SMART," said Tony Pio de Roda, managing director, Nortel Philippines. "This continuing selection of Nortel to implement expansion projects is a strong endorsement of the quality and reliability of our high-performance optical network solutions, and of our ability to provide ongoing upgrades to keep pace with growing market demands."
Under the sixth expansion, PLDT is deploying Nortel Optical Long Haul 1600 and Optical Cross Connect DX systems to light up another wavelength of 10G capacity in its DFON network. In addition, PLDT is deploying a number of Optical Metro 4100/4200 systems in different parts of the country. For its metro Manila optical network expansion, SMART is deploying a Nortel Optical Multiservice Edge (OME) 6500 solution complemented by Optical Metro 4150 multiplexers.
The Nortel Optical Multiservice Edge 6500 packet-optical architecture allows multiple services and network layers to be converged onto a single platform. The platform supports both next generation packet and traditional optical services, whether on a new or existing network. The OME 6500 can deliver up to a 40 percent savings in capital and operational expenses for service providers, based on Nortel estimates.
Nortel Optical Metro 4150/4200 systems are the next generation of SDH equipment. Their flexibility allows them to be used at the network core, hub and edge. They also ensure a scalable evolutionary path to increase capacity as further wavelengths are added.
Nortel Optical Long Haul 1600 is a 10G platform that uses DWDM to optimize optical fiber capacity by merging as many as 160 channels of different wavelengths onto a single fiber for transmission. This enables up to 28 million simultaneous Internet connections on a single strand of fiber, and increases by 640 times the Internet's backbone speed and capacity to carry data, video and voice services.
Nortel Optical Cross Connect DX optical switch is a multiservice global platform that cost-effectively delivers optical and data services, and supports a variety of configurations with capacities including Gigabit Ethernet. The PLDT DFON uses Optical Long Haul 1600 and Connect DX in most of its coverage areas.
Nortel was the leader in the optical transport equipment market for five consecutive years as of February 2004, according to the Dell'Oro Group. In addition, more than 1,000 service providers and enterprises in 45 countries – including 18 of the top 20 metropolitan service areas in the world – have deployed Nortel metro optical solutions.
About PLDT
The Philippines Long Distance Telephone Company (PLDT) was founded in 1928 and is the leading telecommunications provider in the Philippines. Through its three principal business groups – fixed line, wireless, and information and communication technology – PLDT offers the largest and most diversified range of telecommunications services across the Philippines' most extensive fiber optic backbone and fixed line, cellular and satellite networks. More information on PDLT is available on the Web at www.pldt.com.ph.** Smart Communications was launched in 1999 and, with 17 million subscribers, is the country's leading mobile phone operator. SMART offers services in both GSM 800 and 1800 frequencies. Additional information is available at www.smart.com.ph.**
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 and the Globemark are trademarks of Nortel Networks.
**This is a 3rd party link as described in our Web linking practices.
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