Comments on: Nortel’s Dance Partners http://www.allaboutnortel.com/2006/04/19/nortels-dance-partners/ All the News about Nortel Networks Thu, 09 Feb 2012 03:34:00 +0000 hourly 1 By: nortel http://www.allaboutnortel.com/2006/04/19/nortels-dance-partners/comment-page-1/#comment-103 nortel Thu, 20 Apr 2006 19:20:41 +0000 http://allaboutnortel.com/?p=130#comment-103 1.5 sales would equal $23-billion. 1.5 sales would equal $23-billion.

]]> By: Darwin http://www.allaboutnortel.com/2006/04/19/nortels-dance-partners/comment-page-1/#comment-102 Darwin Thu, 20 Apr 2006 14:26:48 +0000 http://allaboutnortel.com/?p=130#comment-102 From a UMTS perspective a Siemens -Nortel combo could be profitable. Siemens has several contracts that are fulfilled on the base station side with product from NEC. Cutting out NEC would result in much greater volume for the Nortel RAN. Of course, in the process you would expect that some competitors would take advantage of the situation to poach customers. If the SI-NT combo means changing product, why stick with the vendor? On the GSM side, the benefits are more difficult to discern. This is a mature market, with large deployed networks, without new customers, and a sharply declining cost curve. Combining the two product lines would be very difficult. The most likely scenario would be capping one product line and ensuring that all extensions go to the survivor. Again this is a recipe to open the acquired customer base to the competition. In any scenario, I would watch Huawei in particular. They are the cost leaders, they are hungry, and their growth targets could definitely use the opportunities opened by messing with incumbent vendors' product lines. From a UMTS perspective a Siemens -Nortel combo could be profitable. Siemens has several contracts that are fulfilled on the base station side with product from NEC. Cutting out NEC would result in much greater volume for the Nortel RAN. Of course, in the process you would expect that some competitors would take advantage of the situation to poach customers. If the SI-NT combo means changing product, why stick with the vendor?

On the GSM side, the benefits are more difficult to discern. This is a mature market, with large deployed networks, without new customers, and a sharply declining cost curve. Combining the two product lines would be very difficult. The most likely scenario would be capping one product line and ensuring that all extensions go to the survivor. Again this is a recipe to open the acquired customer base to the competition.

In any scenario, I would watch Huawei in particular. They are the cost leaders, they are hungry, and their growth targets could definitely use the opportunities opened by messing with incumbent vendors’ product lines.

]]> By: Me http://www.allaboutnortel.com/2006/04/19/nortels-dance-partners/comment-page-1/#comment-101 Me Wed, 19 Apr 2006 21:33:32 +0000 http://allaboutnortel.com/?p=130#comment-101 Interesting if Nortel go for Siemens mobile. Any idea what 1.5 sales is in a dollar value Mark? Interesting if Nortel go for Siemens mobile. Any idea what 1.5 sales is in a dollar value Mark?

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