atcomsystems.ca/forum Forums General Telecom News Nortel to Liquidate Assets.

Story here .

Link doesn't work.

-Hal

I clicked on the link to make sure it copied correctly and it worked fine for me.

So, what does that mean for all the Nortel Dealers?

Now it worked for me too. Must have been them.

So yeah, what does this mean for Nortel dealers as well as customers?

-Hal

It is the beginning of the end. A fire of a once 350 billion dollar company.

What it means for those of us who sell them... think Pontiac dealer. There will be a lot of service work for years. I expect either Avaya or Alcatel/Lucent will buy the Enterprise division. There is also talk of a local consortium made up of former Nortel employees, lead by a former Nortel CEO who actually what keep it going.

Nortel is currently before the Canadian government begging for a bailout; like the ones many others have received.

Are Avaya and Alcatel/Lucent on solid enough footing to even consider absorbing the respective parts of Nortel :confused:

I'm sure both Avaya and Alcatel/Lucent are keeping an eye on the Nortel situation.

Let us not forget that LG and Nortel are in bed with several large investments, one with a name beginning with a "V". LG has lots and lots of money to spend and they've been showing up at parties holding hands quite a bit lately. Don't be surprised if you see LG taking over the meat of Nortel. Being a Korean company, they have loads of money, but they don't boast it as much as their neighbors.

Avaya may have a strong footing with regard to sales and share of the premise systems market, but we are talking about billions upon billions of dollars to even take a bite of Nortel's value. That is a bit much for a privately-held company to accomplish. They would need the help of several outside investors to come up with the kind of cash it would take to pick up Nortel.

Alcatel/Lucent might want a piece of Nortel's central office switching market, but if for no other reason than for the French to own the North American market. It would be a move to snub their noses at us, but probably wouldn't last long.

"The New at&t" might try to pick up some of Nortel, but they can't spend too much since they are too busy trying to show that they aren't making money. It would be in their best interests to try to get some of the DMS manufacturing/support since BellSouth and Ameritech bought so much DMS hardware over the past 25 years.

Siemens is probably the strongest contender in my book. They have already shown that they want Nortel's share of the wireless market and will probably get it. They also have lots of money to throw around for entertainment.

Sadly, I see some Chinese conglomerate coming in and purchasing Nortel. It is happening everywhere you look, so why would a North American icon such as Nortel be any different? They are picking up huge chunks of our markets for pennies on the dollar these days and laughing at us.

Consider the rather unknown bunch from China that bought the Hummer product line. Do you really think they bought it to put H2s on the streets of China? Of course not. They did it to show us that they can and that we were vulnerable enough to sell off an American icon.

While on the subject of American icons, take a look at professional baseball. Once they get their mitts on hot dogs and apple pie, we are done.

The company that has our Nortel account just picked up Avaya as a product. I think they saw the writing on the wall when Nortel went into bankruptcy.

We are a Nortel Enterprise Partner and I have questions just like everyone else. We must remember, though, that the Nortel Enterprise Solutions line is not going to go anywhere no matter who picks them up. There is alot of "stuff" out there on the internet that is just propaganda from the competitors.

They are selling the divisions in order to keep as many jobs as possible.

Companies will not spend millions on these assest just to squash them.

Let things play out and dont panic.

Don't ever think any of these companies are doing this to save as many jobs as possible. If it made financial sense to them to sell off all of the pieces and parts with out saving any jobs they would do it in a heart beat.

Financially motivated? YES.
Do they have a heart? NO

Mike

I agree with you spuds... Keep just one people enough to get the job done, and cut the rest of them. Survival of the fittest..

One question I have is: There maybe a lot of "stuff" on the internet, but where would you get any key-codes if Nortel goes out ?

Buying equipment on the internet is one thing.
Buying key codes may be another issue.
Hope I am wrong.

[[/qb][/QUOTE]One question I have is: There maybe a lot of "stuff" on the internet, but where would you get any key-codes if Nortel goes out ?

Buying equipment on the internet is one thing.
Buying key codes may be another issue.
Hope I am wrong. [/QB][/QUOTE]

I understand that there are alot of questions. I have many as well. The BCM product is too wide spread for someone to discard it. There will be support for it because someone will make money from it. My hopes is that someone like Avaya buys Enterprise Solutions.

The site must be down. My connection is timing out even when I try to access the main page. :shrug:

Works everytime on this end............ :shrug:

Even trying to see a cached version via Google is timing out. :scratch:

It works OK for me.

I'll try again tomorrow on my work computer.

Hmm. Not sure how much better off that's going to make them. I think Siemens might be a stronger choice, but it's not like Nortel actually has a choice.

Justin

If they get bought out by Avaya, you can bet your bottom dollar they will disband the company and get rid of the competition. If Siemens buys them, they can replace their crappy systems with a less crappy system.

If Avaya or anyone else does buy out Nortel and does as you think, they'll be making a HUGE mistake.

Nortel equipment is Rock Solid and still maintains a MAJOR market share in Canada at least.

If I was an end user of Nortel equipment and your scenario came to pass, you could bet your bottom dollar that whoever pulled that crapola would be the VERY LAST company that I would replace my Nortel with.

Most logical buyer (at least of patents) would be Cisco; they would get a place of choice with the big boys in NA.

Cisco is too proud to do something like that..

Cisco would do the same thing as Avaya would do, buy Nortel and piece by piece dismantle the Nortel name.

I don't necessarily see Avay doing that. I do see Cisco doing that, but they won't because they believe they are doing that already. Cisco doesn't believe in TDM, so they probably have very little interest in buying "legacy" product lines and patents.

Justin

I think there is too much of Nortel equipment on ebay for an Avaya or Cisco to even consider buying Nortel. Nortel tech guys did it to themselves. Hope there is enough work to keep them busy in this tough times though.

Time will tell..

Vit,

Just curious, but how did the Nortel techs do "it to themselves"?

The likelihood of the Nortel brand fading into the sunset is about as doubtful as the GM brand doing the same. Sure, there will be some major restructuring and sell-offs of divisions, but the overall name and core products aren't going anywhere anytime soon. They can't.

Look at how many names the 5ESS and Parnter systems have had over the years. Same great products with new brand names. I consider this transition to be the equivalent of a woman getting married and divorced several times, taking a new name each time.

Yes,please do tell.

One of my contacts was a Nortel Direct Sales Manager. This was discussed about 8 month ago so its no longer a secret.
He said that everyone buying non authentic equipment and it causes "doing it to themselves" type of scenario.
Nortel couldnt survive because everyone buys from Metro or other flacky dealer.

Members of this forum dont like to discuss Gray Market and I dont want to put anyone on a chip.
Hope I satisfied your inquiry.
Happy 4 th of July!!!!

Well thats not a Nortel Tech/Engineers fault.That was a upper level management Issue.
I was told They would sell to oversea's suppliers and the boats would literally turn arround and be unloaded for grey market suppliers.Nortel knew it was happening and did nothing to stop it.

Buying "non authentic equipment" ?
You mean Nortel did not manufacture it?
That is a lot of work to manufacture an exact copy of a Norstar so no one could tell the difference.

Jim, I assume he means those that buy "Gray Market" as opposed to buying new.

I for one do often buy "Gray Market" for the clients that want or need to save a buck or two due to budget, etc. It's their choice & their money. Am I not supposed to at least offer these clients an alternative to buying some other brand? Top that off with the world's infatuation of going "green" and recycling. Why would anyone throw out perfectly good equipment if it's still in it's infancy of a lifespan?

That being said, the flip side of that is that these same clients are using used Nortel equipment in lieu of some other brand. Once the client has been exposed to a certain brand of system, I believe they seldom change brands.

Another bonus is that it proves to the world how resilient these systems really are and their "longevity" power. I have systems in this area that have been in service with the same client or subsequent clients since the Norstar line came out. Some with still the 1st software.

Is that really hurting Nortel? Not likely. Nortel's financial problems are the same as most big businesses these days. Too large salaries, bonuses, and pay-offs to higher echelon execs and topped off with financial mismanagement. In that sense, they have no one to blame but themselves.

The trouble now is that having laid off so many employees and closing so many divisions, it's going to be tough, if not impossible to maintain their "world leader in telecommunications" reputation.

[/qb][/QUOTE] You mean Nortel did not manufacture it? [/QB][/QUOTE]

That was a tongue in cheek remark.
And that was my point.
Nortel still had to mfg it.
Customers are still buying Nortel line of equip.
We still get to service it.

AND
we may get to upgrade it down the road with new equipment as the customer grows.
Sure I would rather they buy new from the get-go.
But I would rather they buy old Nortel than some other brand.

You are right Dave.
Nortel hurt themselves.
It started in the 1990's maybe earlier.
They would go around and buy up "crap" companies they had no business buying and pay beyond top dollar for them. It was ridiculous. I said it was wrong back then, now they are finding out how stupid they were.

No, vit, it is not the tech's fault.