Tom Sweeney

It's a coming of age tale….

Posts Tagged ‘Nortel’

UPDATE: Google bids $900M for Nortel’s patent portfolio

Posted by sweens on April 6, 2011

Published on April 4, 2011
Elizabeth Howell

Google Inc. will be the stalking horse bidder for Nortel Network Corp.’s patent portfolio, the last piece of lucrative business standing after the former Ottawa telecom titan went bankrupt in 2009.

The sale, should it pass the muster of United States and Canadian regulatory authorities, would involve around 6,000 patents and patent applications spanning wired, wireless and digital communication technologies, Nortel stated in a release.

“This is an unprecedented opportunity to acquire one of the most extensive and compelling patent portfolios to ever come on the market,” stated George Riedel, Nortel’s chief strategy officer and president of business units. 

The bid will go through both the Ontario Superior Court of Justice and the United States Bankruptcy Court for the District of Delaware along with a request to let other “qualified bidders” submit their offers, Nortel stated. The firm aims to hold the auction in June.

When reached by OBJ, Ottawa patent portfolio firms Wi-LAN Inc. and MOSAID separately said they would not comment on whether they would submit bids.

BlackBerry maker Research In Motion, which has 900 employees in Ottawa, is also pegged as a potential bidder. The Waterloo-based firm did not immediately respond to a query from OBJ.

In a statement on its official blog, Google said that patent lawsuits, an exploding business of late, may “stifle innovation” without reform. The California search-engine firm has already been named in several patent infringement lawsuits in the past year, including from firms Gemalto, NTP Inc. and Oracle.

As such, Google is looking to acquire Nortel’s portfolio to guard against such action in the future. 

“If successful, we hope this portfolio will not only create a disincentive for others to sue Google, but also help us, our partners and the open source community — which is integrally involved in projects like Android and Chrome — continue to innovate,” stated Kent Walker, Google’s senior vice-president and general counsel.

“In the absence of meaningful reform, we believe it’s the best long-term solution for Google, our users and our partners.”

A few weeks ago, Microsoft Corp. picked up around 666,000 web addresses from Nortel that use the now-defunct IPv4 technology.

The $7.5-million deal will allow Microsoft to use these addresses without needing to upgrade to the new standard, IPv6.

The Ottawa tech giant, formerly known as Bell Northern Research, once made up the bulk of the Toronto Stock Exchange at the height of its powers, with a $366-billion market capitalization in 2000.

From that dizzying high, the 95,000-employee firm fell hard from the tech boom as the demand for traditional telecommunications products fell, and several accounting scandals shook Nortel’s reputation.

Nortel filed for creditor protection in January 2009 when its stock price, once trading for $1,600 a share, was at a nickel. Its stock was delisted immediately afterwards.

It has been selling off pieces of its business, as well as its former Carling Avenue property, ever since.

NORTEL SALES

Other major asset sales of Nortel in the past two years:

– March 2009: Israel’s Radware picks up Nortel’s data-switching division for $17.7 million.

– July 2009: Nortel sells its wireless assets to Ericsson for $1.13 billion, and its enterprise solutions business to Avaya Inc. for US$475 million.

– October 2009: Hitachi Corp. buys Nortel’s next-generation packet core network component assets for US$10 million.

– November 2009: Nortel sells its GSM business to Ericsson and Kapsch for US$103 million, and its optical unit to Ciena for $769 million.

– December 2010: Ericsson buys Nortel’s Chinese joint venture for US$50 million.

– February 2010: Nortel directly sells its carrier business to GENBAND for $182 million.

– April 2010: LM Ericsson buys Nortel’s share of its Korean joint venture with LG Electronics for US$242 million.

– September 2010: Swedish wireless giant Ericsson buys Nortel’s multi-switch business for US$65 million. Avaya purchases Nortel’s enterprise solutions unit for US$915 million.

– October 2010: Public Works buys the 370-acre Nortel campus for $208 million.

– March 2011: Nortel sells around 666,000 iPv4 web addresses to Microsoft for US$7.5 million.

http://www.obj.ca/Technology/2011-04-04/article-2398768/UPDATE-Google-bids-900M-for-Nortels-patent-portfolio/1

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Nortel to Sell Ottawa Carling Campus to Public Works and Government Services Canada

Posted by sweens on October 19, 2010

October 19, 2010

TORONTO – Nortel Networks Corporation announced that as part of its focus on maximizing value for its stakeholders, its principal operating subsidiary Nortel Networks Limited and Nortel Networks Technology Corporation (together, Nortel) have entered into a sale agreement with Public Works and Government Services Canada (PWGSC) for the sale of Nortel’s Ottawa Carling Campus, for a cash purchase price of CDN$208 million. The sale, targeted to close at end of year, is subject to customary closing conditions as well as approval of certain governmental authorities and of the Ontario Superior Court of Justice.

The Ottawa Carling Campus is located on 370 acres of land in Ottawa’s National Capital Commission greenbelt, and is comprised of 11 interconnected buildings totaling over 2 million square feet.

The sale agreement provides for Nortel to continue to occupy parts of the Campus for varying periods of time to facilitate Nortel’s continuing work on its global restructuring including work under the transition services agreements with the various buyers of Nortel’s sold businesses. All other existing leases will be assumed by PWGSC, including leases with buyers of Nortel’s businesses. With respect to the lease with Ciena, the purchaser of the Optical Networking and Carrier Ethernet (MEN) business, Nortel is directed by PWGSC under the sale agreement to exercise, on closing, Nortel’s early termination rights under the lease, shortening the lease from 10 years to 5 years. This will result, pursuant to the lease with Ciena, in the repayment to Ciena of US$33.5 million from the escrowed sale proceeds from the MEN sale.

The sale agreement further provides that at closing title will be delivered free and clear of all encumbrances, including the charge in favour of Nortel Networks Inc. with respect to an intercompany loan agreement, under which US$75 million is outstanding as previously announced and reported.

As previously announced, Nortel does not expect that the Company’s common shareholders or the NNL preferred shareholders will receive any value from the creditor protection proceedings and expects that the proceedings will result in the cancellation of these equity interests.

http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100269828&locale=en-US&lcid=-1

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Nortel wraps up sale of CVAS business to GENBAND; almost 400 Ottawa jobs preserved

Posted by sweens on May 31, 2010

GENBAND has completed its acquisition of the Nortel’s carrier voice-over-Internet protocol and application solutions business, one of the last major pieces of the fallen telecom giant to be sold.

Plano, Texas-based GENBAND, which announced the US $182-million deal in February, said Friday that it’s now wrapped up planning for the integration process and has finalized its executive management team, reporting structure and product roadmaps.

As well, nearly 100 per cent of the 400 employment offers extended to Nortel’s former employees in the division have been accepted, the company said. There will be approximately 500 people in total working for GENBAND in Canada.

 “We are pleased to further our vision of fuelling next-generation network migration and IP multimedia services deploymehnt through our successful acquisition of Nortel CVAS technology and talent,” said GENBAND chief executive Charles Vogt in a statement. “By creating one of the most comprehensive, standards-based, interoperable switching portfolios in the world, we will facilitate the industry’s massive and ongoing efforts to modernize networks, maximize existing investments and converge fixed and mobile infrastructures across disparate networks.”

GENBAND has acquired Nortel’s softswitches, media gateways and application platforms and will combine the technology with its own media, session and security gateways, the company said.

The deal means GENBAND will now have strategic product and support facilities in Ottawa, North Carolina, Massachusetts, Maidenhead, Shanghai and Beijing, as well as strategic partners in India and Turkey.

GENBAND paid US$282 million, with balance sheet and other adjustments reducing the net purchase price to $182 million.

The company noted it bought the CVAS business with the help of existing shareholder One Equity Partners, a private equity firm.

“Today’s announcement represents another successful milestone while preserving Nortel’s carrier VoIP technology innovation and base of highly skilled employees,” said Nortel’s chief strategy officer George Riedel. “The sale of our CVAS business to GENBAND enables our global service provider customers to continue to benefit from Nortel’s industry-leading carrier VoIP and telephony expertise and long-standing track record in transitioning time-division multiplexing networks to VoIP.”

GENBAND was originally supposed to be the initial bidder in an auction of the CVAS business, but in February Nortel said it would instead sell the division directly to the U.S. company.

http://www.obj.ca/Technology/2010-05-28/article-1183291/Nortel-wraps-up-sale-of-CVAS-business-to-GENBAND%3B-almost-400-Ottawa-jobs-preserved/1

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Nortel sells its joint venture with LG Electronics for US$242M

Posted by sweens on April 29, 2010

Another piece of the former Nortel Networks empire has been sold, with the Canadian company’s interest in a Korean operation going to LM Ericsson for US$242 million.

Nortel announced the sale of its 50 per cent plus one share interest in LG-Nortel Co. Ltd., the company’s joint Korean venture with LG Electronics Inc., late Tuesday.

The agreement marks the sale of one of only a few remaining assets of Nortel, formerly Canada’s biggest information technology company and once a leading global vendor of telecommunications equipment.

Still remaining are a variety of patents and Nortel’s Passport division, which provides non-optical equipment and was a piece of the Metro Ethernet Networks division that did not sell to Ciena Corp. in a US$521-million transaction last year.

A spokeswoman for Nortel said it’s still unclear what will happen to the remaining assets, which would also include potential tax-loss recoveries that could be used by a profitable company.

“Nortel will assess other restructuring alternatives for its remaining businesses in the event it is unable to maximize value through sales,” said Nortel representative Jamie Moody in an email.

LG-Nortel was established in 2005 to provide telecommunications equipment and network solutions to customers in Korea and around the world.

The sale is subject to approval of the Ontario Superior Court of Justice and must meet certain regulatory conditions.

Earlier this month the financially battered Nortel received another extension to its creditor protection to the end of July, in order to give the fallen Canadian technology company more time to complete a court-supervised restructuring.

The company filed for court protection in the United States, Canada and other jurisdictions in January 2009, and has since sold most of its major operations to former rivals.

At its peak during the 1999-2000 technology boom, Nortel was Canada’s most valuable company after the telecom equipment maker went through several years of rapid expansion and diversification funded by debt and stock sales.

But starting in 2001 Nortel suffered a precipitous decline in sales, due to a combination of factors including the merger or demise of many of its customers, economic slowdowns and an accounting scandal.

 http://www.obj.ca/Technology/2010-04-21/article-1032689/Nortel-sells-its-joint-venture-with-LG-Electronics-for-US%24242M/1

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The end of an era…

Posted by sweens on March 31, 2010

Yesterday marked the end of an era for me. I rushed out of work in order to get to my hockey game on time. I took the usual drive down Carling Avenue and made the right hand turn onto Moodie Drive so I could catch the 417. Traffic seemed slower then normal though on Moodie and as I slowly moved up the road I saw what the hold up was. A large utility truck was parked on the right side with a crane adjusting the old Nortel sign.

Unfortunately they were not performing repairs on this sign. They were taking it down. The sign which for so many years has said Nortel was no longer there. It has been replaced by several smaller signs representing the companies that have bought divisions of Nortel like Ericsson and Avaya.

This to me was truly a symbolic end to the once upon a time Telecomm giant; a building, campus and culture known to many in the Ottawa area as a significant landmark in the city’s West end.

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UPDATE: Nortel opts out of auction for carrier business, works on $182M direct sale to GENBAND

Posted by sweens on March 2, 2010

Published on February 24th, 2010
Krystle Chow
Ottawa Business Journal

Nortel Networks Corp. has decided not to auction off its carrier voice-over-Internet protocol and application solutions business and is instead selling the division directly to Texas-based GENBAND Inc. for US$182 million, with more than three-quarters of the division’s staff expected to keep their jobs.

The former telecom giant, which is currently working through bankruptcy proceedings, said Wednesday that it’s working toward a second-quarter closing for the sale of the telecom carrier technology business’s assets, which include its softswitching, gateways, session initiation protocol – or SIP – applications and time-division multiplexing products and services.

 “Uniting our two businesses will create one of the industry’s strongest carrier VoIP players, in terms of market share, customer base and portfolio,” said Samih Elhage, president of the carrier business, in a statement. “Joining forces with GENBAND will allow us to continue to provide a highly reliable solution and service offering to service providers and enterprises across the globe.”

 Mr. Elhage added that “a significant majority” of the division’s employees would be offered jobs at GENBAND. The company noted that group will include certain employees in some jurisdictions in the Europe, Middle East and Africa region that will transfer automatically to GENBAND by operation of law.

 A company spokesperson noted in an e-mail that about 1,638 of the division’s staff, or 78 per cent, will have the opportunity to continue working with GENBAND, although the latter won’t be able to extend offers until it’s received court approval for the deal.

 The business employs approximately 2,100 people in total, with 80 per cent of that number located in North America. Thirty per cent of the North American staff are in Canada, the company said in an earlier interview with OBJ.

 GENBAND, which has teamed up with private equity firm One Equity Partners and other existing shareholders to secure the carrier division’s assets, had initially offered US$282 million. However, Nortel has agreed to make balance sheet and other adjustments to reduce the purchase price by US$100 million.

 Nortel first announced in December that GENBAND had put in a bid that was supposed to kick off a competitive bidding process, culminating in an auction that would have started on Thursday.

 At the time, Mr. Elhage told OBJ that the sale would represent one of the final steps in its insolvency proceedings.

 The Toronto-based company had sold off a number of its businesses through the auction process, including its wireless division, enterprise unit and optical business.

However, company spokesperson Jamie Moody said Nortel chose not to go with the auction route for the carrier business as it didn’t receive any other qualified bids, despite interest from other parties.

 When asked if Mr. Elhage would continue on at GENBAND following the completion of the deal, Ms. Moody reiterated the fact that GENBAND isn’t allowed to enter into discussions or extend offers to any employees until the transaction is finalized.

 The sale will now await U.S. and Canadian court approvals at a joint hearing on March 3.

http://www.obj.ca/Technology/2010-02-24/article-814537/UPDATE%3A-Nortel-opts-out-of-auction-for-carrier-business%2C-works-on-%24182M-direct-sale-to-GENBAND/1

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LG-Nortel launches joint venture for voice and data network

Posted by sweens on January 28, 2010

Published on January 28th, 2010
Canadian Press

The joint venture formed by Nortel Networks Corp. and LG Electronics of South Korea plans to tackle the U.S. business equipment market by mid-February with a new Taiwanese partner.

LG-Nortel said Thursday that it will pair with Accton Group to roll out a voice and data network for businesses operating under the name Edgecore Networks Inc.

LG-Nortel will hold a 60 per cent share in Edgecore while Accton will have the remaining 40 per cent.

The two companies will split responsibilities such as research and development, manufacturing, and marketing.

“This partnership will provide significant new opportunities to reinforce our brand, increasing our global competitiveness and helping our customers embrace the future opportunities and challenges of the converged communications market,” said LG-Nortel chief executive Jae Ryung Lee in a release.

Nortel holds a majority stake in the LG-Nortel joint venture, one of the few remaining pieces of the company that hasn’t been sold.

Toronto-based Nortel, formerly a giant of the global telecom equipment industry, filed for bankruptcy protection last year and has since been auctioning off its assets in an attempt to pay back debtholders.

http://www.obj.ca/Technology/2010-01-28/article-585270/LG-Nortel-launches-joint-venture-for-voice-and-data-network/1

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LOOK AHEAD 2010: Technology in the year 2010

Posted by sweens on January 14, 2010

Published on January 11th, 2010
Jim Donnelly

OBJ asks six industry leaders what’s in store for the future

What are high technology’s prospects in 2010? We recently sat down with a clutch of high-powered paragons of the scene to find out what’s in store for Ottawa, for their respective markets, and for their companies. Here’s what they had to say:

DEBBIE WEINSTEIN, partner at Labarge Weinstein

We had a very busy 2009 for mergers and acquisitions and some public company financing, and this will continue in 2010. There are some very good companies in Ottawa that have quietly grown into industry-leading enterprises. We’ll see some IPOs and M&As from those entities. Venture capital activity will be sporadic at best in Ottawa; we’ll see it peppered over traditional IT as well as clean tech and life sciences – these latter two areas are due for a breakthrough, and there are some companies in these sectors that are possibilities to really shine in 2010. We will also see Ottawa grow in the digital and multimedia sectors.

With the permanent lack of new private venture capital, startups will be hard-pressed to find appropriate capital, outside of a few. The Ontario government has a fund which may help on some matching, but the lead must come from private sources – angel or VC funds. That being said, the city will continue to see lots of small, fledgling startups employing fewer than 10 people with no outside money. But this will not propel the next big one, which is what this city needs.

The newer public companies have done well in 2009 and this will bode well for a couple of others that we may see go public in 2010, if the public market stays healthy. With the selloff of Nortel practically complete, while all acquirers downsized as part of the integration post-closing, I’m confident we’ll see growth in employment from those businesses. Our workforce is exceedingly strong and competitive, as demonstrated by the increasing presence of foreign-run operations in Ottawa. Canadian companies like RIM and Open Text continue to see employment growth in the capital.

So, I believe Ottawa is well-insulated for employment growth but not necessarily stemming from well-funded, VC-backed companies.

KEVIN FORD, CEO of Parliant Corp.

In the iPhone application market, we’re pretty much saturated with stand-alone games in the (App Store by Apple). So I think the store will begin to focus on helping people find things they need. There are also some very elaborate applications we’re seeing emerge that tie into shipping, billing, and inventory systems that run on an iPod Touch, which is a $180 device. And (these applications) allow employees to update all these systems at the touch of a button. That’s the kind of application the press will never hear about, but what we’re going to see a lot of in the next 12 months.

In terms of Parliant, we have more people pounding down our door to write iPhone apps than we can handle. We average three to five requests per day. So I guess those numbers say that if we wanted to focus just on that market we could, and also hire a lot of programmers to do it. But we’re not going to do that, because this conference automation software we have seems to have stirred up a real hornet’s nest. It looks like there’s a lot of low-lying fruit we can pick up with it, so we’re going to do that. Because it’s highly visible, and it feeds back to our strengths.

So in 2010, we’re going to be focusing on selling our Phone Valet products, because they keep the money rolling in, while also continuing to develop other revenue streams.

JOHN REID, president and CEO of CATAAlliance

Last year was very much a “suspension year,” so you’ve got some pent-up demand that we’re going to see. We’re seeing some restoration of confidence, and that will flow into Ottawa.

One area to watch will be information security and public safety; that’s a big market. And through the expansion of networks, there’s a bit of a data deluge going on – there’s a tremendous amount of data being created right now – so there are storage searching issues as well. So those are some of the drivers, along with the consumer element with smartbooks and iPhones, etc., that we’ll see in 2010.

The cloud is now taking hold, where you have all these applications that allow companies to utilize resources in a more efficient way and also to be more agile. Because of this you’re going to see a new generation of leaders and spokespeople for the industry, and that marks a transition, and I think a very positive one. One thing that’s also grabbing hold is the utilization of social networks and how those can help brand a company.

ROB LANE, CEO and co-founder of Overlay.tv

In (the online video application) space, we’re now moving from what I call early adoption into mass adoption. What I see is that in the retail space, the big retailers aren’t just thinking about whether they should do something with video anymore – they’re actively doing something in that space. They think video provides a better experience for their customers, and there’s some evidence that it does convert into somewhat higher sales. And I’m seeing that globally. I spent a couple of weeks in Europe before Christmas, and it very much reflected what I’m seeing here. What I’m seeing from people is that they’re saying, “Absolutely, we’re moving on this.”

Our challenge over the next year is difficult, because we’re into scale now – last year we delivered the product, which was video overlay for retail, and for now it’s all about scaling that into multiple channels, both indirect and direct. So it’s about market expansion and sales expansion. And our two biggest geographies are the U.S. and the U.K.; we opened an office in the U.K. last quarter.

It feels like the timing is right in the market with the product we’ve got, and that means we’ve got an opportunity. Twelve months from now, I’ll tell you if it all worked out.

MIKE DARCH, executive director of OCRI Global Marketing

I think (Ottawa) is in a very good position. Certainly, we weathered the financial crisis much better than a lot of other cities – we had to handle the double whammy of the Nortel bankruptcy and the financial crisis, and for a large part we came out of that very well. Our unemployment rate is still low, and our companies are diversifying in both thrust and markets. And we’re well-positioned to take advantage of that in 2010.

If we look at sectors, certainly the whole mobile world is going to move forward. You’ve got companies like DragonWave that are providing the infrastructure to make that happen, you have companies like Magmic and Fuel Industries that are doing well … so I think in that whole space, we’re well positioned. Certainly, clean tech is also well-positioned. In that space, we’ve got young companies that aren’t that well developed yet, but companies like Clearford and Plasco that are waiting for an opportunity. And certainly another area that’s on the rise is the virtual college and virtual education market, and we have a strong offering there as well.

Geographically, I think we’ll see the U.S. recover soon. Where will that be? Likely the wireless world, digital media, security, clean technology – all the areas where we in Ottawa have strength. So the rebuilding of that market will help us, but I think more importantly the emerging markets will be the strongest centres of growth.

Ottawa has always shown itself to launch a new set of companies during times like this. A lot of big, international companies are expanding here … and Ottawa has a history of using adversity to create opportunity.

ROB ASHE, general manager of analytics and performance management at IBM

The business analytics market we play in is estimated to be a $105-billion opportunity. It continues to be a top priority for CIOs, CFOs and CEOs who want to instantly parse mountains of diverse, disconnected pieces of data to move the business forward and improve performance. For the last four years, business analytics has remained a top priority of CIOs surveyed by industry analyst firm Gartner. In our last survey, 83 per cent of global CIOs polled identified business analytics as a top priority.

In 2010, customers will use our IBM Cognos software portfolio to monitor the effectiveness of stimulus spending across industries like health care, education, energy and social services, among other uses. Analytics are now being infused into the infrastructure of cities as municipalities work to improve the use of finite resources and aging infrastructures.

Businesses will continue to want to know where – and how – they are spending money so they can operate more efficiently. The advantages are not limited to corporations: governments are also looking to analyze statistics and make policy changes.

In 2010, the addition of the predictive element will become increasingly more important for customers as well. They want to be able to not only sense and respond to relevant business data, but also predict and take associated action on that data from any location or device.

http://www.obj.ca/Technology/2010-01-11/article-421592/LOOK-AHEAD-2010%3A-Technology-in-the-year-2010/1

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Nortel wraps up $10M sale of assets to Hitachi, names U.S. bankruptcy monitor

Posted by sweens on December 22, 2009

Published on December 8th, 2009
Krystle Chow
Ottawa Business Journal

Nortel Networks Corp. has completed the US$10-million sale of its next-generation packet core network components business to Hitachi Ltd.

Toronto-based Nortel, which is in the process of selling off most of its assets as part of its insolvency proceedings, said it’s received all approvals and satisfied closing conditions for the sale of the assets to the Japanese firm.

The next-generation packet core assets are part of its carrier networks business, and include technology such as its next-generation serving GPRS support node and other solutions related to the advance telecomputing architecture, or ATCA.

The product line supports the transfer of data over existing wireless networks and the next generation of wireless communications technology.

Nortel said the sale, which was first announced in October, includes relevant non-patent intellectual property, equipment and other related tangible assets, as well as a non-exclusive licence of certain relevant patents and other intellectual property.

The assets do not include legacy packet core components for Nortel’s GSM and UMTS businesses.

Nortel also announced it has identified John Ray as its principal officer of the U.S. debtors, who will work with Nortel management, Canadian bankruptcy monitor Ernst & Young, the joint administrators in the U.K. administration proceedings and various retained advisors to provide oversight for the U.S. side of the bankruptcy proceedings.

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Nortel to auction carrier networks division without initial bid

Posted by sweens on September 22, 2009

By Ottawa Business Journal Staff

Tue, Sep 22, 2009 3:00 PM EST

Nortel Networks Corp. has decided to auction off its carrier networks business and, unlike its previous division sales, is doing it without a “stalking horse” bidder this time.

The ailing telecom firm said its principal operating subsidiary, Nortel Networks Ltd. and its U.S. subsidiary Nortel Networks Inc. are planning to sell by auction the assets of its carrier networks division associated with the development of next-generation packet core network components.

The assets consist of software to support the transfer of data over existing wireless networks and the next generation of wireless communications technology, and include relevant non-patent intellectual property, equipment and other related tangible assets, the company said.

The purchaser will likely also get a non-exclusive licence of relevant patent intellectual property, Nortel added in its release.

The announcement marks the third Nortel business to be sold off since the company filed for bankruptcy protection in early 2009. However, this auction process is slightly different from the previous deals as it does not include an initial “stalking horse” bidder with a firm offer.

Bids will be accepted for the carrier networks business until the deadline of Oct. 16, with the auction to take place two weeks later.

The federal government on Sept. 17 gave the green light to the $1.13-billion sale of Nortel’s wireless business to Ericsson, and the company is now awaiting the final approvals for the $900-million sale of its enterprise solutions division to auction winner Avaya, which was also the “stalking horse” bidder for the business.

http://www.ottawabusinessjournal.com/295481941870324.php

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Nortel customers support US$915M Avaya purchase of enterprise solutions unit

Posted by sweens on September 15, 2009

By Ottawa Business Journal Staff

Mon, Sep 14, 2009 12:00 PM EST

A group representing more than 4,000 Nortel customers has praised the selection of Avaya as the winning bidder in Friday’s auction for Nortel’s enterprise solutions business, a deal which makes Avaya Inc. the top provider of unified communications services.

The International Nortel Networks Users Association expressed its support for the US$900-million cash acquisition, which will transfer to Avaya all assets of Nortel’s global enterprise solutions business, as well as the shares of Nortel Government Solutions Inc. and DiamondWare Ltd.

“We are excited to begin working with Avaya, and are ready to turn the focus back on providing our members the great education, user-driven perspectives, and other services they have come to depend on,” said the association’s executive director Victor Bohnert in a statement. “Both Nortel and Avaya have been at the forefront of delivering high-quality, innovative products to the market. With their strengths now combined, we believe the customers of both companies will be the true winners of this deal.”

As part of the deal, Avaya has also agreed to put up $15 million for an employee retention program, following an announcement that it will be hiring 2,500 former Nortel staff worldwide, with roughly 800 of those in Canada and 680 in Ottawa alone.

“This is fantastic news for our customers, as this will empower us to continue to deliver industry-leading solutions and services focused on unlocking the enterprise business potential enabled by unified communications,” said Joel Hackney, president of Nortel’s enterprise business, in a statement.

Avaya’s final bid was almost double its initial “stalking-horse” offer of $475 million, as two other unidentified rivals also entered the fray.

The company must now wait for Canadian and U.S. court approvals of the proposed sale agreement at a joint hearing on Sept. 15, with the sale expected to close late in the fourth quarter of 2009.

The transaction is facing some opposition from competitors and former Nortel partners, including Verizon Communications Inc., which has filed a suit arguing that Avaya’s purchase could leave Verizon customers in the law enforcement, anti-terrorism and national security sectors without communications network support, since Avaya is allegedly refusing to take on Verizon’s support contracts with Nortel.

Earlier media reports also said a group of telecom industry companies has complained to the U.S. Department of Justice that an Avaya-Nortel union would create an unfair “duopoly” controlling nearly 80 per cent of the enterprise market.

Available at – http://www.ottawabusinessjournal.com/295419582173540.php

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News Update: Ericsson dials Nortel auction up with $730M bid

Posted by sweens on July 24, 2009

News Story
Ericsson dials Nortel auction up with $730M bid
By Ottawa Business Journal Staff
Thu, Jul 23, 2009 9:00 AM EST

Swedish telecom giant Ericsson has jumped into the battle for Nortel Networks Corp.’s wireless businesses, topping the high bidder – private equity firm MatlinPatterson – by $5 million.

Ericsson on Tuesday submitted a US$730-million bid for Nortel’s CDMA and LTE, short for code-division multiple access and long-term evolution technology, according to a Globe and Mail report that cited sources familiar with the bidding process.

Besides besting the $725-million proposal earlier announced by MatlinPatterson, which has said it intends to build a stand-alone business based on Nortel’s wireless assets, Ericsson’s offer is also higher than the $650-million “stalking horse” bid made back in June by Nokia Siemens Networks.

Research In Motion Ltd. (TSX:RIM) is also trying to make a play for the wireless division along with other unspecified Nortel businesses, although Nortel earlier rejected its bid as RIM had not submitted the offer along court-approved guidelines.

http://www.ottawabusinessjournal.com/295013184334957.php

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Nortel is back in the news…

Posted by sweens on July 15, 2009

I find this humorous but I was driving by the Nortel buildings on my way to dinner last night and I thought to myself – I have not heard much about Nortel lately.  Well much to my pleasure I see that Nortel is back in the news. 

 CANADA-US-FRANCE-NORTEL-THREATAccording to Yahoo News, French employees of Nortel who are being laid off threatened to blow up the facility if they were unable to secure decent layoff terms.  The employees placed gas cylinders around the plant – but they turned out to be empty.

 I wonder if all employers expect this kind of reaction to a lay-off.

 It is good to hear a lighter side of a Nortel news story for a change.

 Please read the full article at: http://ca.news.finance.yahoo.com/s/15072009/6/finance-french-workers-threaten-blow-nortel-factory.html

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Nortel stocks jump up 80%…

Posted by sweens on March 27, 2009

Shares in Nortel grew by over 80% yesterday as the sale of Nortel’s data-switching division was approved for sale to Israel’s Radware for $17.7 million. While the deal is not finalized, the motion to approve the sale was approved in a U.S. bankruptcy court yesterday. Nortel had originally planned to put the division up for auction on March 23rd but was forced to cancel as it did not receive any additional bids.

To read the full article, please visit:
http://www.ottawabusinessjournal.com/294104676888407.php

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Tough times continue…

Posted by sweens on February 26, 2009

In recent news today, General Motors (GM) posted close to a $10 Billion dollars fourth-quarter loss and was forced to use $6.2 Billion dollars of cash in the last 3 months of 2008.  In 2008, GM is reporting to have lost $30.9 Billion dollars.  GM is reporting that it will need roughly $30 Billion dollars as a bail out in order to avoid Chapter 11 bankruptcy protection in the United States.

 

Read the full article at: http://ca.news.yahoo.com/s/capress/090226/business/general_motors

 

In other news, Nortel announced today that it would be laying off another 3200 employees bringing the total to 5000.  The company will be dismissing its employees over the next few months as part of the restructuring plan under bankruptcy protection.

 

Read the full article at: http://www.ottawabusinessjournal.com/293881415493017.php

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