Nortel Wins Another 40G Deal

Alaska Communications is selected Nortel to provide a 40G optical network that will be part of an undersea fiber-optic cable from Alaska to Oregon. The new network will let ACS deliver services to corporate and residential consumers between Alaska and the lower 48 states.

“Like consumers all over the world, ACS customers want to run bandwidth-intensive applications like Internet video, social networking sites, and advanced business services,” Philippe Morin, president of Nortel’s Metro Ethernet Networks, said in a statement. “Nortel’s 40G/100G solution allows ACS to cost-effectively deliver the capacity to meet these needs in a unique geographic environment, over various qualities of fiber and across long distances.”

Last week, Nortel unveiled a deal to provide 40G optical technology to Bell Canada.

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  • Slapped

    I am more and more bearish on NT… RBC cut it's target from $8 to $6 this morning. As for the rumor posted on this blog about IBM taking over NT, I have doubts about this happening… I would have seen a telco such as Telus or Bell, or even a US one, taking over NT. Or even a software company. IBM ? Hmmm…
    As for it's deal with Bell, I don't think they'll make a lot of money out of it… me thinks that since Bell used to be NT's motherco, they might have the right to some rebate. As for the Alaska deal… bah… that's not enoug… We should have heard about more such deals at this point. I'm starting to believe those who are bearish about NT

  • Steve

    Aren't undersea cables expensive? Did no one tell Alaska Comm that theres a big piece of land called Canada connecting Alaska to the lower 48?

  • jokerr

    Undersea is expensive, and it's been opening up new market opportunities for NT

  • FD

    Does anyone have an estimate on what the top line and bottom line are for this deal?

  • Steve

    I don't understand: if undersea is expensive, why would ACS choose an undersea route for its cable when they could just run it over land?

  • jokerr

    A lot of fibers are deployed beside railroads, otherwise going through the rocky mountains will be tough. Also they'll need permission from railroad and government, it's really hard to say since we don't know when the fiber was put in the ground.

    Undersea fibers usually have more amplifiers (less distance between amplifiers) to maintain better overall link OSNR. Nortel's 40g coherent transceiver has the best performance and can propagate longer distances than the competition, I think that's why it is making an inroad in the undersea market.

  • jokerr

    A lot of fibers are deployed beside railroads, otherwise going through the rocky mountains will be tough. Also they'll need permission from railroad and government, it's really hard to say since we don't know when the fiber was put in the ground.

    Undersea fibers usually have more amplifiers (less distance between amplifiers) to maintain better overall link OSNR. Nortel's 40g coherent transceiver has the best performance and can propagate longer distances than the competition, I think that's why it is making an inroad in the undersea market.

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