TORONTO, May 24 -- Nortel Networks bought the remaining two-thirds of Photonic Technologies for approximately $35.5 million (US) in cash. Nortel acquires the Australian company after an initial investment for a third of the company two years earlier. According to Nortel the move will strengthen its position as the industry moves from 10-Gb/sec. systems to 40- and 80-Gb/sec. systems. Photonic Technologies develops optical components that control the polarization of light. Its circulators and dynamic gain flattening filters are important components in high-speed optical networks and Dense Wavelength Division Multiplexing (D-WDM) networks. This acquisition brings to Nortel Networks another disruptive technology which will enable us to push the frontiers of optical networks and deliver a high-performance Internet with the speed, reliability, performance, and economics needed by our customers and the millions of businesses and consumers using the Internet for commerce, collaboration, and communication, said Greg Mumford, president of Nortel Networks Optical Networks.