By Alex Scroxton

4 August 2008

Nortel and LG's comms and networking JV, LG-Nortel, has successfully closed the acquisition of fibre-optic access solutions developer Novera Optics as it attempts to simplify its delivery of carrier class Ethernet fibre-to-the-node/home services to its channel.

LG-Nortel forked out $16m in cash for Novera, with a potential extra $10m in the kitty based on future performance.

The jointly-owned unit has ambitious plans to help carriers role out new fibre services that are capable of carrying growing amounts of data as demand for bandwidth continues to boom in both business and consumer environments. It intends to integrate Novera's own Wavelength Division Multiplexing Passive Optical Networking (WDM-PON) technology into its own fibre offering.

"Nortel's strong technology base and extensive distribution channels will ensure that service providers around the world can use our WDM-PON technology to more easily deliver high-speed services to their customers," said Novera CEO John Barton.