Sunday, November 15, 2009

How Nortel Optical Networking Sale Will Change The Industry

Nortel may be bankrupt but that doesn't mean it has no value.

The rise and fall of Nortel,

Take, for instance, the company's Metro Ethernet Networks unit that Ciena is looking to buy for more than $500 million. Metro Ethernet Networks, which generated $1.36 billion in revenue for Nortel in 2008, has deployed an estimated 430,000 optical nodes to customers in 65 countries. Additionally, the Dell'Oro Group research firm found that Nortel topped its competitors in shipments of 40Gbps equipment and that it had an estimated 32% market share of 40Gbps equipment at the end of 2008. On top of all this, Nortel has a strategic partnership with AT&T, meaning that anyone who purchases the Metro Ethernet Networks will have access to the second-largest carrier in the United States.

"Nortel is very strong in terms of Layer-1 transport technology for 40G and 100G networking," says Andrew Schmitt, an analyst at Infonetics Research. "I've surveyed carriers and Nortel comes out as the leader in both 40G and 100G technology by a wide margin."

Read on,

No comments: