Acquisition takes Nortel toward LAN-speed MANs

NEWS Nortel Networks' spending spree has continued with the $300m acquisition of fellow Canadian company, Cambrian Systems. Cambrian, a provider of dense-wavelength division multiplexing (DWDM) for metropolitan area networks (MAN), will be integrated into Nortel's Optical Business Applications division. However, the Cambrian brand will remain. Due to be completed within 30 days, the deal will give Nortel access to Cambrian's Optera technology, which splits fibre optic cables into separate wavelengths. The ultimate aim is to bring faster, more reliable connections to MANs. Jean-Louis Seguineau, programme director at the Meta Group, said: "The future of the MAN is dependent on it having the same speeds as a campus network or LAN (local area network). Anything that can bring LAN speeds is good." Seguineau added: "It's a good buy for Nortel." According to Nortel VP, Masood Tariq: "The demand for bandwidth is constantly on the increase and this move will deal with that problem while also preventing any bottlenecks that may occur on the network." Tariq said the total market was worth $250m.