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Nortel Networks to Build Broadband Network for Star One

European broadband service provider Star One announced Monday it will spend $224 million on turnkey infrastructure in Germany, in a deal with Nortel Networks.

Under the terms of the agreement, Nortel Networks will build and test the network, then transfer it to Star One, using its Reunion broadband wireless access solution, Preside network management and Shasta 5000 broadband service node.

Christian Golaszewski, chief operating officer at Star One, said that, until now, monopoly by the national telecoms operator has kept access costs high, limiting broadband access in the last mile in Germany.

"We believe huge potential has been unleashed with liberalization of the local loop, and we are striking early to ensure that business customers can enjoy high-capacity data and Internet services at low cost," said Golaszewski.

Recently, Star One secured a 3,000-kilometer fiber backbone, and says it expects to invest over $490 million in Germany by the end of 2002.

Star One is also a senior partner in the SkyPoint S.A. consortium, which this year gained a national 26 GHz point-to-multiple point wireless local loop license in Spain. SkyPoint is said to be targeting other European markets as well.

Pascal Debon, president, Service Provider Solutions for Nortel Networks, said that broadband wireless networks are beginning to take off across Europe because more countries are granting operator licenses.

"We can quickly equip service providers like Star One to roll out a broadband wireless network in a cost-effective manner, thus empowering them to become key players in an increasingly competitive marketplace," said Debon.

Josef Ellmauer, chief executive officer, Nortel Dasa, commented that the Star One network would be another milestone in bringing the high-performance Internet to Germany.

"Nortel Networks' Reunion enables operators to deliver services to new and existing customers without long lead times, high costs or complicated deployments, allowing timely return on investments," said Ellmauer.

Last year, Nortel Networks (NT) had U.S. GAAP revenues of $21.3 billion.



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