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Silk Telecom Uses PBT

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MELBOURNE, Australia -- Silk telecom will deliver carrier-grade security, resilience and quality to its business and government customers at cost-effective Ethernet prices with Australia's first Metro Ethernet network based on Nortel* [NYSE/TSX: NT] technology.

The Silk network, valued in excess of US$1million, will feature Nortel's breakthrough Provider Backbone Bridging (PBB) and Provider Backbone Transport (PBT) technology, which uses industry standard Ethernet to drive a radical change in the economics of carrier networks. PBT makes it simple for service providers like Silk to use Ethernet - a transmission technology originally used to connect PCs in local area networks - as the fundamental carrier-grade transport technology. This allows Silk to deliver high-bandwidth services such as mission-critical business applications and full-streaming video at new levels of quality, savings and operational simplicity.

"Last year we built a new DWDM optical backbone network using Nortel's innovative Common Photonic Layer (CPL) technology to support a wide range of high-speed managed services for customers in both metro and rural areas," said Simon Perkins, chief executive officer, Silk telecom. "Nortel's PBB/PBT enabled Metro Ethernet solution works seamlessly with our CPL backbone providing a fully integrated solution at a reduced level of cost and complexity when compared to other technologies. As a result, we are able to differentiate ourselves in the marketplace by providing more cost-effective services to our customers."

"Previously, service providers had no choice but to use complex and costly transport technology to be able to offer high-bandwidth services to their customers," said Mark Stevens, managing director, Australia and New Zealand, Nortel. "The Metro Ethernet solution Nortel is providing Silk addresses these challenges and delivers on Nortel's promise of Business Made Simple. BT's decision to deploy PBT in its 21st Century Network demonstrates that other service providers are following our lead by moving to Ethernet for their metro networks."

Nortel Networks Ltd.

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