More Carriers Upgrading Long-Haul Networks

Today Nortel named two of the customers deploying its new 40G optical long-haul network equipment; Bell Canada is widening the lanes of its network between Montreal, Toronto and New York, and Alaska Communications Systems is beefing up the potential bandwidth between Alaska and Oregon.

Once big reason for the upgrades at the core is the increase in fiber and other fat pipes closer to the consumers — in some cases directly to the home. Philippe Morin, president for Metro Ethernet Networks at Nortel, points out that those links are driving innovation and services such as HD video, which are prompting providers to upgrade their core networks.

Bell Canada and Alaska Communications join 21 other carriers that have taken up Nortel’s 40 G equipment since it was launched in April. Nortel competitors Ciena and Cisco are also gaining customers for long-haul equipment, but despite a brighter outlook for such sales, the low margins associated with the products won’t help Nortel’s troubled financials. Wall Street certainly isn’t impressed — Nortel’s stock has been trading below its $3.1 billion in cash (as of the end of June) several times in the last month.