Nortel Wins Next-Gen Neos Contract

LONDON -- Neos Networks is delivering the nationwide network capacity to meet customer demand for increasingly advanced applications, such as Internet video and new business communication services, thanks to a 40G-ready optical solution from Nortel(1) (TSX: NT)(NYSE: NT). With its new optical network in the UK, Neos customers can select exactly how much bandwidth they need, when they need it on the network.

The optical solution for Neos will use Nortel´s powerful new 40G/100G Adaptive Optical Engine, introduced today (see companion announcement, Nortel Meets Bandwidth Explosion with New, Revolutionary 40G to 100G Optical Solution). Neos is initially deploying a 10G live network, which provides the foundation of the 40G network, and will be trialing the 40G network elements next month.

Neos Networks´ portfolio of bandwidth services, running over the new optical network, includes a product called Liquid Bandwidth which enables customized networking solutions with the flexibility to increase or decrease bandwidth seamlessly and quickly when required. Neos Networks, the telecommunications business owned by Scottish and Southern Energy plc, is one of the UK´s leading network operators and offers a porfolio of reliable and flexible connectivity services, including fast-growing Ethernet services, to meet the commercial needs of UK businesses and wholesale customers.

"Our customers depend on us to deliver reliable, high-speed, very high-bandwidth services on-demand," said Adrian Pike, managing director of Neos Networks. "Our Liquid Bandwidth product enables us to deliver dynamic Ethernet connectivity to suit their day-to-day business requirements. We chose the Nortel solution for our nationwide optical network because we needed a proven, flexible and scalable platform to support our Liquid Bandwidth offering. The Nortel platform also allows us to deliver cost-effective point-to-point Gigabit Ethernet 2.5G and 10G services today and enables us to scale to 40G services simply and cost-effectively while providing the most promising migration path to 100G - all with the same network and operational simplicity, this was a critical factor in our selection process."

In a separate release:

COPENHAGEN -- High-bandwidth consumer applications like Internet video, the increase in the international popularity of social networking sites like Facebook and My Space, combined with new, advanced business services are creating increasing demands that are stressing network capacity worldwide. TDC, Denmark´s leading provider of communications solutions, has selected Nortel(1)(TSX: NT)(NYSE: NT) to deliver a 40G-ready, next-generation optical network across Europe that will provide four times the bandwidth of their current network to meet these escalating demands and provides a technology path to deliver tomorrow´s networking speeds of 100G.

TDC is deploying its new adaptive all optical solution (see companion announcement, Nortel Meets Bandwidth Explosion with New, Revolutionary 40G to 100G Optical Solution) initially to carry TDC European network traffic across the United Kingdom, the Netherlands and Germany. With this solution TDC can support industry-standard 10G services today as well as next-generation 40G services using Nortel 40G/100G Adaptive Optical Engine technology. TDC will be testing 40G products and services with the intent of launching 40G services in late 2008 due to a strong market demand. At the same time, the deployment provides TDC with a clear technology path to 100G.

"The 40G capability preserves our investment in our fibre plant that enables us to meet increasing bandwidth needs easily and also helps us meet the needs of our customers," said Morten Bangsgaard, vice president, TDC Fixnet Nordic. "Nortel´s solution will allow us to leverage adaptive optical technologies to save both capital and operational expenses and to easily expand our services across Europe."

Nortel Networks Ltd.