Nortel to buy Qtera for $3.25bn

NEWS Nortel Networks has spent up to $3.25bn in stock on Qtera Corporation, a privately-held start-up whose technology improves the transmission of optical signals over long distances. Nortel said the deal is a further step towards an all-optical Internet. Qtera's products operate at speeds of up to 10Gbps. Qtera will become a Nortel subsidiary. The company's CEO, Fahri Diner, will report to MikeUnger, president, Optical Networks, Nortel. The price is dependent on Qtera meeting business targets. Next-generation telco, Qwest Communications - a Nortel customer - has trialled Qtera's technology.