Nortel has announced optical networking hardware, which it says is the first example of communications equipment capable of delivering both 40Gbit/s and 100Gbit/s data transfer from the same system.

Nortel has called the system, the 40G/100G Adaptive Optical Engine (AOE), and says that service providers can move data at 40Gbit/s over their existing 10GbE optical fibre networks through the use of simple plug-and-play technology components.

Nortel's AOE uses Dual Polarisation Quadrature Phase Shift Keying modulation with coherent detection, and some advanced digital signal processing to achieve 40Gbit/s data transfer speeds operation over 10Gbit/s optical fibre networks.

Touting bandwidth heavy applications like high definition TV and internet video as being a driver for data transfer speeds well in excess of 10Gbit/s, Nortel's president for Metro Ethernet networks Philippe Morin said, “We are seeing significant demands for bandwidth as a result of business-to-business VPNs and the conversion from analog to high-definition video delivery over the desktop. In addition, every operator’s plan is to deliver new revenue-generating services such as IPTV."