BT has selected Nortel Networks as a strategic supplier for the upgrade of its core national network to a data and Internet Protocol (IP) architecture based on Optical Internet solutions. Subject to execution of a definitive agreement, Nortel Networks estimates that this could be worth as much as US$2 billion over five years.
BT will be one of the first European operators to undertake a major core network migration to meet the demand for bandwidth and Internet services. Construction is scheduled to begin in September, and the network is expected to be operational by April of next year.
Nortel Networks expects to supply BT with an optical internet solution that can dramatically increase network capacity, reliability and functionality. This will position BT to reduce operating costs, enhance competitiveness and speed time-to-market for new services to capture additional revenues and enhance long-term profitability.
Under terms of the planned agreement, BT will be able to upgrade the transport layer of its core network using 10-gigabit optical solutions from Nortel Networks. BT will also be able to use Nortel Networks Preside network and service management solution. The optical equipment to be deployed will be manufactured in the UK, primarily in Nortel Networks’ facilities at Monkstown, Northern Ireland and Paignton, Devon.
The news comes just one day after Nortel Networks announced a $1.9 Billion Investment to more than double its global optical systems & components production capacity To meet the demand for networks, systems and components, creating 9,600 new jobs in North America, Europe and Australia.