Prism Communication Services Inc. Announces $19 Million Contract with Nortel Networks

Strategic Insights -

Prism Communication Services Inc., a subsidiary of Comdisco, Inc., has entered into a significant contract with Nortel Networks, a leading provider of telephony, data, and wireless solutions. According to the agreement, Prism will utilize Nortel Networks' next-generation optical networking equipment to enhance its high-speed Internet traffic infrastructure. The deployment of Nortel Networks' OPTeraLH backbone system with 32 wavelength Dense-Wavelength Division Multiplexing (D-WDM) will enable Prism to serve its customers with reliable and high-speed integrated data, voice, and other communications solutions.

Key Takeaways:

  • The contract worth an estimated $19 million between Prism Communication Services Inc. and Nortel Networks will provide Prism with next-generation optical networking equipment to enhance its high-speed Internet traffic infrastructure.
  • Prism plans to deploy Nortel Networks' OPTeraLH backbone system with 32 wavelength Dense-Wavelength Division Multiplexing (D-WDM) to carry high-speed Internet traffic between its business centers in Chicago, Cleveland, New York City, Washington D.C., and Atlanta.
  • Prism's network currently uses Nortel Networks' Internet Telephony solutions to serve residential and business customers, based on a $460 million contract signed in October 1999.
  • The optical portfolio selected by Prism enables scalability to terabit speeds and will provide its customers with powerful network solutions that enable reliable high-speed integrated data, voice, and other communications solutions.
  • Nortel Networks' OPTera solution will allow Prism to easily scale the backbone as its customer base grows.
  • In 1999, Nortel Networks set new standards for speed with its OPTera technology demonstrating an 80 Gbps platform and in bandwidth with the OPTera 1600G, which transmits 160 colors of light each capable of carrying 10 Gbps of traffic, for total capacity of 1.6 Tbps.

Statistics:

  • Estimated contract value: $19 million
  • Number of wavelength Dense-Wavelength Division Multiplexing (D-WDM): 32
  • Number of business centers involved in the contract: 6 (Chicago, Cleveland, New York City, Washington D.C., and Atlanta)
  • Capacity of Nortel Networks' OPTera 1600G: 1.6 Tbps
  • Gbps platform demonstrated by Nortel Networks' OPTera technology in 1999: 80 Gbps
  • Revenues of Nortel Networks in 1999: $21.3 billion

Sources:

  • PR Newswire
  • PR Newswire, Feb. 3, 2000
  • Comdisco, Inc.
  • Nortel Networks
  • Nortel Networks, www.nortelnetworks.com