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Nortel to Bow Out of Indian Contract
By Mark Evans | February 15, 2006
CIBC analyst Steve Kamman believes Nortel is out of the running for the next phase of BSNL’s multi-billion dollar wireless expansion. It appears the business will go to Ericsson, Nokia, Motorola and/or Siemens. This is probably good news for Nortel, which posted a loss of about $200-million on a $500-million contract with BSNL - a deal that ex-CE0 Bill Owens supported while ex-COO Gary Daichendt opposed it. Nortel unhappily discovered the pain of deal with local suppliers in India, particularly non-telecom equipment makers involved in thing such as putting up towers. CIBC believes the eventual winners of the new BSNL contract could have negative margins. Here’s a Reuters story on Kamman’s note.
Topics: Analyst Coverage, Contract Wins, Wireless |