Nortel Buys Network Startup for $3.25 Billion
Page 1 of 1
Nortel (NT) expects that the new optical technology will greatly enhance Internet performance, with a network capable of sending signals as far as 2,500 miles (4,000 kilometers) in optical form. The Qtera technology operates at 10 gigabits per second and Nortel believes it will cut costs and offer scalability to its long-range networks.
Qtera boasts that its disruptive technology cuts as much as 75 percent of optical-electrical-optical conversions in data transmission, conversions which were considered necessary to keep the signal from fading over distance. Nortel is expected to get six times the signal distance travelled from the improved network.
The new solution was already trialed last month by Nortel client Qwest Communications (QWST), a test that represented the longest unregenerated transmission at OC-192 over a service provider's existing fiber plant. Beta trials using live traffic are in the works.
In order to win the maximum acquisition figure, Qtera must meet certain goals. The deal is expected to close in the first quarter of next year.