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Nortel

October 08, 2007 08:11 ET

Sapphire, Nortel Metro Ethernet Bring Reliable, Affordable Internet Communications to Gibraltar

Metro Ethernet Solution Delivers Higher-Bandwidth Applications at Lower Cost to Gibraltar-Based Businesses

GIBRALTAR, SPAIN--(Marketwire - Oct. 8, 2007) - Sapphire, Gibraltar's youngest telecommunications operator, is bringing affordable communications services such as high-bandwidth Internet connectivity to businesses in Gibraltar using a Nortel(1) (TSX:NT)(NYSE:NT) Metro Ethernet Networks solution. Sapphire also plans to add VoIP and multimedia services in the near future.

"Gibraltar's economy is experiencing an upturn with tourism, construction, financial and on-line gaming companies leading the way," said Lawrence Isola, CEO Sapphire Networks. "These dynamic businesses are dependent on real-time communications delivered cost-effectively and we're using our Nortel Metro Ethernet Networks solution to deliver them."

Sapphire is using its Metro Ethernet Networking solution to offer international bandwidth services and data applications to business customers such as global gaming companies, major international law firms, banks and other financial institutions with presence in Gibraltar.

"Nortel Metro Ethernet Networking solutions address the market demand for bandwidth-hungry applications such as Internet video, residential broadcast TV, video on demand and new wireless broadband multimedia," said Philippe Morin, president Metro Ethernet Networks, Nortel. "Helping Sapphire provide services in Gibraltar, where current demand outstrips service capacity, shows how well Nortel's optical and carrier data strengths combine to help alternative operators simplify the delivery of up-to-the-minute, affordable and dependable communications choices."

Located near the southernmost tip of the Iberian peninsula overlooking the Strait of Gibraltar, Gibraltar shares a border with Spain to the north. In order to deliver essential international connectivity, and ensure interoperability with other carriers, Sapphire has deployed an external Point of Presence (PoP) in Madrid, Spain and intends to add another in Barcelona.

Sapphire's solution uses IEEE 802.1ah Provider Backbone Bridges (PBB) to create a core network supporting multiple customers. By using different addressing schemes for the core of the network and the customers, PBB enables Sapphire to deliver secure and scalable Ethernet business services.

The solution for Sapphire comprises the Metro Ethernet Routing Switch 8600 - for reliable, secure and intelligent network routing - leveraging the latest Nortel Carrier Ethernet innovations, including Provider Backbone Bridges (PBB) technology. The solution also includes the Metro Ethernet Services Unit 1800/1850 as a customer premises device, providing Sapphire with access to a range of Ethernet-enabled services including Internet access, video transport and virtual private LAN service.

The backbone connectivity between the Sapphire PoPs is provided with the Optical Metro 4150 compact STM-4 add/drop multiplexer that supplies customer access to traditional TDM services on one compact platform and the Nortel Multiservice Switch 15000 that enables future VoIP implementation by acting as a Media Gateway.

The Nortel Metro Ethernet Networks portfolio includes solutions for optical, carrier Ethernet and multiservice switching. The portfolio enables service providers to address the growth of high-bandwidth video and data applications in their metro networks by deploying Ethernet as the universal transport layer for any service they wish to offer, including next-generation services such as triple and quadruple play, wireless video and data and Ethernet business connectivity.

About Nortel

Nortel is a recognized leader in delivering communications capabilities that make the promise of Business Made Simple a reality for our customers. Our next-generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel's technologies are designed to help eliminate today's barriers to efficiency, speed and performance by simplifying networks and connecting people to the information they need, when they need it. Nortel does business in more than 150 countries around the world. For more information, visit Nortel on the Web at www.nortel.com. For the latest Nortel news, visit www.nortel.com/news.

Certain statements in this press release may contain words such as "could", "expects", "may", "anticipates", "believes", "intends", "estimates", "targets", "envisions", "seeks" and other similar language and are considered forward-looking statements or information under applicable securities legislation. These statements are based on Nortel's current expectations, estimates, forecasts and projections about the operating environment, economies and markets in which Nortel operates. These statements are subject to important assumptions, risks and uncertainties, which are difficult to predict and the actual outcome may be materially different from those contemplated in forward-looking statements. For additional information with respect to certain of these and other factors, see Nortel's Annual Report on Form10-K, Quarterly Reports on Form 10-Q and other securities filings with the SEC. Unless otherwise required by applicable securities laws, Nortel disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

(1)Nortel, the Nortel logo and the Globemark are trademarks of Nortel Networks.

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