$1 billion contract takes the high (speed) road
Aerie Networks, Nortel sign contract for 20,000-mile national network for service providers.
Aerie Networks will spend $1 billion with Nortel Networks over the next four years to optical networking gear in its 20,000-mile, high-capacity fiber-optic network in the U.S.
Aerie, based in Denver, is linking 194 U.S. cities with rights-of-way belonging to 12 energy and communications companies who are among the company's investors. Instead of selling services directly to consumers and businesses, Aerie plans to make money by carrying Internet traffic for emerging service providers.
Nortel is providing financing to Aerie for as much as 50 percent of the value of the contract. Corning Inc. is providing the fiber for the project.