RealTime IT News

CoreExpress, Nortel Networks Ink $100 Million Deal

Extranet provider CoreExpress Thursday secured an equipment and services deal worth $100 million from Nortel Networks.

CoreExpress also has the option to purchase additional Nortel Networks optical solutions as network expansion demands, bringing the potential estimated contract value close to $300 million.

CoreExpress will use Nortel's package to support initial deployment of a 22,000-mile, coast-to-coast, IP-backbone network, which makes up the the foundation of CoreExpress' Internet Data Exchange System (iDES), its platform for a multi-ISP extranet service.

The CoreExpress network will feature the Nortel Networks OPTera Long Haul 1600 Optical Line System, a data-optimized, 10 gigabits per second platform that can be scaled to 1.6 terabits per second of capacity.

This will allow CoreExpress to provide businesses with a comprehensive fusion of Net access and a private network.

"Nortel Networks is enabling CoreExpress to deliver a leading- edge extranet service that allows companies to conduct transactions, send sensitive data and share mission-critical applications with business partners seamlessly and reliably over the Internet," said Mike Gaddis, chief executive officer, CoreExpress.

With Thursday's deal, Canada-based Nortel is scrambling to gain ground on networking rival Lucent Technologies Inc. in equipment and service deals as the two have spent the past year securing such plays from new economy firms across the board.

Last week, Lucent scored a major coup when Leap Wireless International agreed to triple the amount of wireless phone equipment and services it will buy from Lucent in a deal now worth $900 million. Leap had previously licensed $330 million in supplies and services from Lucent last September.