Nortel Networks Accelerates Leadership in Service Provider, Optical Markets
New RHK Study, Credit Suisse First Boston Report Highlight Momentum
BOSTON, Mass., Dec. 7 /CNW/ - 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 Stéphane Téral, 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
<http://www.rhk.com>.
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 <http://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. |
