Nortel Networks Accelerates Leadership in Service Provider,Optical Markets
New RHK Study, Credit Suisse First Boston Report Highlight Momentum
BOSTON, Mass., Dec. 7 /PRNewswire/ - According to a recent RHK study and a report from Credit Suisse First Boston, Nortel Networks (NYSE/TSE: NT) is continuing to build its leadership position and take market share in the global service provider and optical networking markets, providing new evidence that Nortel Networks strategy for building the high-performance Internet is winning support from customers worldwide.
A new RHK study of the European optical networking market indicates that Nortel Networks has surpassed Ciena as the market leader in WDM (wavelength division multiplexing). RHK expects Nortel Networks share in the European WDM segment to be 37 percent at year-end, up from 23 percent in 1999. The RHK study also estimates an increase in market share for Nortel Networks in the European SDH (synchronous digital hierarchy) equipment market to 17 percent in 2000, up from 13 percent in 1999.
"As indicated in our report, we see no signs of a slowdown in the optical communications market and expect carriers and service providers to continue spending on high-capacity transport systems," said Stephane Teral, director, European optical transport, RHK. "In fact we have slightly increased our forecasts. Nortel Networks expansion within the WDM and SDH markets is greatly apparent in this year's report, and we predict that it will continue."
Nortel Networks is building market share in Europe as growing use of the Internet drives demand for faster, wider, smarter optical networks. Nortel Networks Optical Internet solutions offer the speed, performance, and reliability required to cope with massive increases in Internet traffic, which continues to grow at double- and triple-digit rates worldwide.
Last month, RHK forecast that demand for bandwidth from global networks could soar "300 fold" in the next eight to 10 years, driven by increased levels of high-speed Internet access from homes and businesses, and by new interactive, multimedia applications. The study illustrates the need to build a high-performance Internet that can handle this projected boom in bandwidth demand.
In a report entitled "Breaking the Bottleneck: A Wireline Weekly," Credit Suisse First Boston states that Nortel Networks "is on the verge of attaining the number one position globally in terms of market share in carrier networking equipment." The report attributes Nortel Networks gains to the company's performance in its next generation optics, access and wireless businesses.
"We are committed to developing and creating solutions that will position service providers to succeed and profit in today's highly competitive market," said John Roth, president and chief executive officer, Nortel Networks. "These reports send a very clear signal that Nortel Networks is not only taking market share away from our competitors in high growth segments of the market, but also successfully executing its multiple growth engine strategy for the high-performance Internet."
"Our strong growth in high-performance Optical Internet solutions shows that we have the solutions customers want," said Pascal Debon, president, EMEA, Nortel Networks. "There is only one company breaking away in the service provider, optical and wireless markets, and that is Nortel Networks."
RHK Inc. is the leading firm specialising in the analysis of advanced technologies for the public telecommunications network. The company provides subscription services and custom consulting to technology vendors, service providers, and the investment community in North America, Europe, and the Asia Pacific region. RHK's areas of expertise include: Access Networks, Core and Edge Switching and Routing, Emerging Network Architectures, New Voice Infrastructure, Optical Components, Telcom OS, SONET/SDH, WDM and Optical Networks, and other emerging technologies. RHK is based in South San Francisco, Calif. For more information, please go to www.rhk.com. |
