186k, the recently formed telecoms business of Lattice Group, today announced its selection of Nortel Networks as its strategic supplier of optical and network transmission technology for its IP backbone network in the UK, in a contract worth initially £67m over two years. The move will see the two companies working together to build one of the UK’s most advanced end-to-end all-optical IP networks, due to be completed by Q4 2001.

'By leveraging Nortel Networks’:: expertise, 186k will provide one of the most advanced IP networks in the UK. This allows us to meet the needs of an increasingly demanding marketplace for high-bandwidth, value-added IP applications and rigorous service levels,' explains Lawrie Haynes, CEO of 186k. 'We will be ideally placed to power the broadband communications revolution, being driven by local loop unbundling, Internet and 3G mobile services. Early target customers will include other communications operators, ISPs, ASPs and mobile operators.'

Nortel Networks will supply the Dense Wave Division Multiplexing (DWDM) technology that will power the network as well as a range of network transmission products including optical line systems, IP and SDH transmission systems, network management, Packet Voice Gateways, and IP routers.

Commenting on the deal, Malcolm Collins, President Next Generation Service Providers, Nortel Networks said: 'Using Nortel Networks’:: solutions, 186k will be able to offer its customers some of the most technically advanced communications services unifying voice, multimedia and data traffic across its end-to-end national IP network. This relationship will create a major new force in the UK communications industry.'

186k has already employed NACAP, the UK subsidiary of Dutch construction firm Koop, to assist with the physical build of its national fibre-optic network in a contract worth an estimated £131m.

186k is creating a £332 million, national fibre-optic network infrastructure which will provide transmission, managed data services and IP (Internet Protocol) services across the UK.

About Lattice Group

Lattice Group is the holding company for the group of businesses recently demerged from BG Group plc. Lattice Group comprises Transco, the owner, operator and developer of the substantial majority of Great Britain’::s gas transportation system, and other businesses, including telecommunications. Our website is http://www.lattice-group.com

About Nortel Networks

Nortel Networks is a global Internet and communications leader with capabilities spanning Optical, Wireless, Local Internet and eBusiness. The Company had 1999 U.S. GAAP revenues of US$21.3 billion and serves carrier, service provider and enterprise customers globally. Today, Nortel Networks is creating a high-performance Internet that is more reliable and faster than ever before. It is redefining the economics and quality of networking and the Internet, promising a new era of collaboration, communications and commerce. Visit us at http://www.nortelnetworks.com