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Yankee Group: Nortel Handles Half of European Net Traffic

According to a new report issued by Yankee Group, 50 percent of all Internet traffic in Europe now travels over optical Internet equipment from Nortel Networks.

"The massive Internet growth we are seeing in Europe -- estimated at 200 million users by 2005 -- is only possible with the optical backbone networks to support it," said Chris Lewis, managing director, research and consulting at the Yankee Group in Europe.

According to the Yankee Group, in the The Optical Internet in Europe: Ending the Bottleneck, availability of pan-European bandwidth is beginning to highlight the lack of capacity in national and access networks. This growing local bottleneck inhibits growth and is prompting several pan-European bandwidth providers to build national and city fiber networks.

"This report confirms Nortel Networks' substantial impact on Europe's Internet backbone," said Matt Desch, president, Service Provider Solutions, Nortel Networks (NT).

Desch added that with the Metromedia Fiber Network agreement, Nortel Networks is supplying more than 75 percent of all pan-European optical networks.

Nortels multi-million dollar deal with Metromedia Fiber Network (MFNX) for equipment to connect major cities throughout Europe follows a $250 million contract announced in February for deployment of Nortel Networks' Optical Internet solutions in North America.

"We remain uniquely positioned to support Yankee Group's continued expectations for growth," Desch said. "Our operations are structured to keep us ahead of the self-perpetuating demand cycle by doubling capacity and halving bandwidth costs every nine months."