Nortel Dominates SONET Market with Record Sales

Strategic Insights -

Nortel, a leading telecom equipment supplier, continued its success in the SONET market with a two-year, $9 million volume purchase agreement with Manitoba Telephone System. The deal includes high-end SONET gear such as OC-3, OC-12, and OC-48 TransportNode equipment. With an installed base of 13,000 SONET elements, including 9,000 OC-48 products, Nortel claims to be the number one supplier of high-capacity SONET gear in North America and possibly the world.

Key Takeaways:

  • Nortel has secured a two-year, $9 million volume purchase agreement with Manitoba Telephone System for SONET gear.
  • The agreement includes OC-3, OC-12, OC-48, and OC-192 TransportNode equipment, as well as the S/DMS Network Manager.
  • Nortel has an installed base of 13,000 SONET elements, including 9,000 OC-48 products, which are the fastest SONET products on the market.
  • The company claims to possess 25 percent of the North American SONET market.
  • Nortel is investing heavily in the development of OC-192 products, which would enable them to transport information faster than 10 Gigabits per second.
  • The company plans to be among the leaders with a deployable OC-192 product, but did not provide specific timeframes for rolling out the product.
  • Key features of high-end SONET products include network management and software download capability.

Statistics:

  • $9 million: the value of the two-year volume purchase agreement with Manitoba Telephone System.
  • 13,000: the number of SONET elements installed by Nortel.
  • 9,000: the number of OC-48 products installed by Nortel.
  • 25 percent: Nortel's market share of the North American SONET market.

Sources:

  • "Nortel makes SONET deal with Manitoba Telephone System." No date provided.
  • "DSC Communications-Owned Unit Plans Two New SDH Product Intros." No date provided.
  • Thomas Jensen, an NKT Elektronik product manager.
  • Robert Yapp, Telecom Solutions' marketing director.