Although last Wednesday's press release from Nortel was anticipated in the telecom community for quite sometime now, it made a huge uproar in the general media.
"This is the way, this is Nortel" used to be punch-line of this telco giant. But it seems that it has lost its way around. It's evident that Nortel's strategy to sell off its key assets such as 3G might have paid off in the short-term by pleasing the stock markets, but it has lead to its debacle on the long run.
As I mentioned in this previous article, telecom vendor industry is not a profitable one. One mechanism players use to increase/retain profits is through merging or acquiring competitors.
Having said that, Nortel still has significant market share in enterprise networks & MEN and has enough funds to burn cash for few more months. If the courts provide ample protection against debtors, Nortel still has a fighting chance to stage a come back. But the question is who has the competence to orchestrate its revival? Will its competitors who want a piece of its lucrative businesses allow a come-back?
The Great Balkan Tour
2 years ago
2 comments:
having worked for Nortel..I know where I stand though it enhanced my knowledge,nothing fits better than cisco in ur resume :-)
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