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Vermont Electric Power Company Deploys Optical Ethernet Solution from Nortel Networks

Posted on: Wednesday, 5 November 2003, 06:00 CST

OTTAWA--(BUSINESS WIRE)--Nov. 5, 2003--Vermont Electric Power Company (VELCO), the Rutland-based transmission company owned by 22 distribution utilities in Vermont, has completed statewide deployment of Optical Ethernet solutions from Nortel Networks (NYSE:NT)(TSX:NT).

Using Nortel Networks OPTera Metro 3500 Multiservice Platforms with Resilient Packet Ring (RPR) technology, VELCO has converged data and voice services over the same infrastructure. By leveraging the reliability and high-bandwidth of SONET with the simplicity and low-cost of Ethernet, VELCO's Optical Ethernet deployment is expected to enhance day-to-day operations while helping VELCO to drive high reliability and resiliency for mission-critical power services.

Additionally, the broadband connections now available at each utility substation give VELCO the ability to support new, high-bandwidth applications to enhance employee productivity, reduce time-to-service, improve information sharing and make better use of network assets.

"With the increased bandwidth available through our Optical Ethernet network, we have increased our ability to gather information and understand business -- without impacting the performance of our critical systems," said Dan Nelson, head of Information Systems and Telecommunications, VELCO. "As a result, we have improved our ability to share information, reduced the risk of service impacting outages, and improved the efficiency of our network."

With OPTera Metro 3500 Multiservice Platforms distributed throughout Vermont, the network is organized into two interconnected OC-48 rings. With this configuration, the infrastructure can be shared between all VELCO substations with no single point of failure.

VELCO's optical network marks one of the largest enterprise deployments of Nortel Networks RPR technology. This technology enables efficient use of network resources by supporting flexible bandwidth sharing between devices on the ring. For example, VELCO can dedicate part of the ring to support system control and monitoring applications like SCADA (Supervisory Control and Data Acquisition), while using the excess capacity for other, performance-enhancing and cost-saving applications.

Delivering power services throughout the state, VELCO's interest is to help service its community members. With the network that has been put in place, VELCO also has the opportunity to further improve the quality of life for Vermont residents by making broadband services available and affordable to state agencies like police and public safety organizations.

"Optical Ethernet solutions are giving utility companies like VELCO the opportunity to leverage their network assets to support new applications and explore new service offerings -- all while driving reduced costs and reduced network complexity," said Marco Pagani, president, Optical Ethernet and Storage Solutions, Nortel Networks. "With the Optical Ethernet solution in place, VELCO will see an increase of available bandwidth, allowing them to improve on traditional utility functions while offering new services like Internet access, video surveillance, high-speed remote access and digital image transfer, just to name a few."

As part of Nortel Networks enterprise technology vision, "One Network. A World of Choice," Nortel Networks optical solutions for the enterprise offer an unmatched scalable, simple and resilient infrastructure to increase the competitiveness of enterprises as they seek a profitable and responsive business model for serving their clients and customers.

Nortel Networks provides a complete set of simple, scalable and secure Optical Enterprise solutions to assist the utility sector in maximizing their networking investment by increasing bandwidth, improving network resiliency and providing new service opportunities. By implementing these solutions, utilities can achieve reduced network complexity and improved total cost of ownership by converging multiple disparate networks over a common infrastructure. Additionally, they can leverage their assets to generate new revenue opportunities through delivery of next generation Optical Broadband Services including Optical Ethernet and storage connectivity.

Nortel Networks comprehensive Optical Ethernet portfolio enables delivery of Ethernet services across service provider and enterprise networks. Nortel Networks is the only vendor that provides a complete set of Ethernet services via Ethernet over fiber, Ethernet over SONET/SDH and Ethernet over WDM. Nortel Networks was #1 worldwide in market share for the Ethernet DWDM and SONET MSPP segments of the Optical Ethernet market for 2002, according to IDC.

Nortel Networks is an industry leader and innovator focused on transforming how the world communicates and exchanges information. The Company is supplying its service provider and enterprise customers with communications technology and infrastructure to enable value-added IP data, voice and multimedia services spanning Wireless Networks, Wireline Networks, Enterprise Networks, and Optical Networks. As a global company, Nortel Networks does business in more than 150 countries. More information about Nortel Networks can be found on the Web at www.nortelnetworks.com.

Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include, among other things: the completion of the comprehensive review and the release of financial results and issuance of restated financial statements for 2000, 2001 and 2002 and the first and second quarters of 2003; the severity and duration of the industry adjustment and the continued reductions in spending by our customers; the sufficiency of our restructuring activities, including the potential for higher actual costs to be incurred in connection with restructuring actions compared to the estimated costs of such actions; fluctuations in operating results and general industry, economic and market conditions and growth rates; negative impacts on our gross margins; the ability to recruit and retain qualified employees; fluctuations in cash flow, the level of outstanding debt and our current debt ratings; the ability to meet the financial covenant in our credit facilities; the use of cash collateral to support our normal course business activities; the dependence on our subsidiaries for funding; the impact of our defined benefit plans and our deferred tax assets on our results of operations, cash flows and compliance with our financial covenant; the ability to integrate the operations and technologies of acquired businesses in an effective manner; the impact of rapid technological and market change; the impact of price and product competition; barriers to international growth and global economic conditions, particularly in emerging markets and including interest rate and currency exchange rate fluctuations; the impact of rationalization in the telecommunications industry; the dependence on new product development and our ability to predict market demand for particular products; the uncertainties of the Internet; the impact of the credit risks of our customers and the impact of customer financing and commitments; stock market volatility generally and as a result of acceleration of the settlement date or early settlement of our purchase contracts; the impact of the New York Stock Exchange minimum listing requirements and the proposed consolidation of our common shares; the impact of supply and outsourcing contracts that contain delivery and installation provisions, which, if not met, could result in the payment of substantial penalties or liquidated damages; the ability to obtain timely, adequate and reasonably priced component parts from suppliers and internal manufacturing capacity; the future success of our strategic alliances; and the adverse resolution of litigation and intellectual property disputes. For additional information with respect to certain of these and other factors, see the most recent Form 10-Q and Form 10-K filed by Nortel Networks with the United States Securities and Exchange Commission. Unless otherwise required by applicable securities laws, Nortel Networks disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Nortel Networks, the Nortel Networks logo, the Globemark, Business Without Boundaries and OPTera are trademarks of Nortel Networks.

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