MELBOURNE, Australia -- Nortel Networks* [NYSE/TSE: NT}today announced the deployment of its 100th Passport* multiservice switch into Telstra's national Switched Data Network (SDN).

The Passport-based Telstra SDN currently carries more than 40 terabytes of data per month, hosts more than 40,000 access subscribers, and services more than 40 percent of Australia's domestic Frame Relay market.

Graham Shepherd, Telstra's executive general manager, Network Products, said Nortel Networks' Passport switches play a central part in Telstra's existing data network and will have a key role in the future consolidation of data and Internet Protocol (IP) networks.

"The Switched Data Network, which is built around Passport switches and transmission infrastructure, has provided the basis for Telstra's highly successful Accelerate Frame Relay and Accelerate ATM (asynchronous transfer mode) products," Shepherd said.

"Through the Data Mode of Operation (DMO) project, the network will be extended with new-generation Passport switches to meet the growth of existing products and provide the backbone for carriage of IP traffic," Shepherd added.

Kevin Dearsley, general manager of the Telstra account for Nortel Networks, said, "The deployment of this 100th Passport switch marks an important milestone in the evolution of data networking in Australia. As strategic supplier to Telstra's core SDN, Nortel Networks has been actively involved in the evolution of this national data network for over a decade. Today, we continue to play a significant role in supporting Telstra's commitment to meeting the increasing demand for Frame Relay and the growing ATM switched data services market."

Nortel Networks delivered its first data switch, the DPN-100, to Telstra in 1989 - when the SDN was known as AUSTPAC and the key transmission application was X.25. In late 1994, as part of its multibillion-dollar Future Mode of Operation (FMO) program, Telstra embarked upon a major modernisation program to ready this electronic data network for the information superhighway of the late 1990s, and selected Passport as its switching platform for the future. Frame Relay services were successfully launched in 1996 - and in 1997 Nortel Networks and Telstra introduced Telstra Accelerate ATM, the world's first implementation of Frame Relay/ATM interworking.

Nortel Networks' Passport product portfolio of multiservice switches leads the worldwide ATM and Frame Relay markets. Recently, International Data Corporation (IDC), The Dell'Oro Group, In-Stat, Dataquest and Vertical Systems Group (VSG) separately ranked Nortel Networks number one in global market share in the multiservice wide area network (WAN), ATM, Frame Relay equipment and Frame Relay Access Device (FRAD) categories.

In addition, the Passport 7480 switch was named a top performer in April 1999 lab tests conducted by Data Communications, receiving a "Tester's Choice" award in an evaluation of Frame Relay-to-ATM switches from leading vendors.

"The Passport 7480 is primarily utilised as a vehicle for Frame Relay service and ATM adaptation, and 12,000 switches have been shipped to leading national and international Frame Relay service providers all over the world," said Reg Bird, President, Nortel Networks Asia South Pacific. "The Passport 7480 is a flagship product, and we continue to invest in increasing platform performance, as well as developing higher port densities and features to optimise the carriage of Internet traffic."

As a key component of Telstra's core SDN, the 100th Passport switch will also be making a notable contribution to the next-generation DMO infrastructure that Telstra is implementing. Recently, as part of Telstra's DMO tender, Nortel Networks was selected to provide advanced IP networking solutions as well as support services. Currently, Nortel Networks is also building Telstra's national CDMA wireless network, and trialing high-speed Wireless Internet services.

Nortel Networks delivers value to customers around the world through Unified Networks* solutions, spanning mission-critical telephony and IP-optimized networks. Customers include: public and private enterprises and institutions, Internet service providers; local, long-distance, cellular and PCS communications companies; cable television carriers; and utilities.

Nortel Networks' common shares are listed on the New York, Toronto, Montreal and London stock exchanges. Nortel Networks had 1998 revenues of US$17.6 billion and has approximately 76,000 employees worldwide.