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February 28, 2001
Nortel Networks Delivers New DSL Offerings to Enable Broader Customer Reach
Expands Universal Edge IMAS Product Portfolio to Address Underserved Markets
BOSTON – Extending its strategy to deliver the high-performance Local Internet, Nortel Networks* [NYSE/TSE: NT] has announced two additions to the Nortel Networks Universal Edge* IMAS product portfolio that will enable broadband and on-site service providers to increase profitability from DSL offerings and to tap new and underserved markets.
These new offerings – Nortel Networks Universal Edge IMAS Remote and Universal Edge IMAS XpressDSL – will enable service providers to address a broader customer base with a robust, scalable platform that can expand DSL networks into office buildings, apartments, hotels and city blocks. Nortel Networks Universal Edge IMAS Remote will allow service providers to deploy DSL beyond the central office to the in-building market, as well as to outside plant environments. Universal Edge IMAS XpressDSL will allow service providers to deploy DSL in high-density locations such as multi-tenant units (MTUs) and multi-dwelling units (MDUs). Consumers, teleworkers and business subscribers served by these products will be able to take advantage of value-added DSL services beyond simple, ‘best effort’ Internet access, including multiple speed/guaranteed bandwidth, multi-destination, and intranet/extranet connectivity. “The worldwide MTU DSLAM market achieved port growth of 140 percent in the fourth quarter of 2000, and both the European and Asia Pacific regions realized MTU DSLAM revenue growth of over 500 percent for the same quarter,” said Jon Cordova, analyst, Infonetics Research. “Deployment of DSL equipment in office and apartment buildings represents a large and profitable market opportunity for service providers looking to meet the insatiable demand for broadband connectivity,” Cordova said. “Nortel Networks is in a strong position to address this growing market demand.” According to the Yankee Group, the home office and small business market is underserved, with 118,000 buildings in the United States that are shared tenant office spaces – home to more than 2.3 million business tenants. Nortel Networks offering will position service providers to capitalize on this promising market. “Nortel Networks Universal Edge IMAS Remote will allow us to offer DSL services to thousands of rural and MTU/MDU consumers who are demanding high speed access,” said Galen Boyd, network manager, Golden West Telecommunications. “We are very excited about the new revenue opportunities this product will open up for us.” Featuring ATM functionality with comprehensive quality of service (QoS), Nortel Networks Universal Edge IMAS Remote is a compact, carrier-class broadband access system, designed for deployment in multi-tenant environments, remote terminals or small central offices that were previously cost-prohibitive for service providers. The remote application enables service providers to grow their subscriber base by deploying DSL beyond the central office environment, when addressing lower line size requirements, or remote deployment conditions. It allows service providers to scale quickly as they add new customers to the network and differentiate their service offerings. “With the addition of the new Universal Edge IMAS products to our DSL offerings, service providers around the world will be able to tap new markets, increasing revenue-generating opportunities,” said Scott West, senior marketing manager, Local Internet, Nortel Networks. “We are continuing to deliver the tools necessary for our customers to stay competitive, while furthering Nortel Networks vision to deliver the high-performance Internet into the hands of end-users.” Nortel Networks Universal Edge IMAS XpressDSL for MTU/MDU applications offers service providers flexible packaging options, including wall and rack mountings for maximum installation flexibility at the customer premise. Supporting multiple DSL transmission types with high-capacity ATM switching in the MTU and MDU space, this application delivers cost-effective services from a single, flexible platform, providing a competitive differentiator for service providers as well as building owners. Nortel Networks Universal Edge IMAS Remote and Universal Edge IMAS XpressDSL will be available in the second quarter of this year. Nortel Networks recently announced enhancement of its Universal Edge IMAS DSLAM product portfolio to support the International Telecommunications Union’s G.shdsl standard. Nortel Networks has also introduced a DS1 interface to Universal Edge IMAS, intended to allow service providers to scale from DS1 to OC3, and to increase flexibility and lower entry-level investment. New DSL programs recently launched by Nortel Networks, including QuickStart DSL, HomeDSL* and WorkDSL*, are designed to increase speed-to-market by eliminating interoperability issues and other deployment challenges. Nortel Networks is a global Internet and communications leader with capabilities spanning Optical, Wireless, Local, Personal Internet and eBusiness. The Company had 2000 U.S. GAAP revenues of US$30.3 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. 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; the ability to obtain timely, adequate and reasonably priced component parts from suppliers and internal manufacturing capacity; 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. *Nortel Networks, the Nortel Networks logo, the Globemark, Universal Edge, HomeDSL and WorkDSL are trademarks of Nortel Networks.Contact for Press and Analysts:
Carrie McGranahan
Nortel Networks
770-708-7282
cbmcgranahan@nortel.com
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