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More Deets on Mike Z.’s Big Plan
By Mark Evans | May 23, 2006
There wasn't anything earth-shattering to come out of Nortel CEO Mike Zafirovski's fireside chat yesterday at J.P. Morgan's annual technology conference. Among the more interesting comments included Zafirovski's belief it will take three to five years to fix the company; the wireless equipment industry needs to consolidate - something that would be good for the industry and customers; Nortel has enough market share in CDMA to compete but it does not have that luxury in GMS/UMTS and that discussions to address this situation are taking place; and that by 2008, investors should have a pretty good about Nortel's direction. What makes Zafirovski so credible is not only his track record but how he compares with his predecessors (John Roth, Frank Dunn, Bill Owens). Regardless of whether you believe Nortel can rebound, Zafirovski instills some faith things will get better because he's comes across as a straight-shooter. He has put together a senior management team with little, if any, push-back from the analyst community, formulated a strategic plan and made a few moves to change the Titanic's direction. The wild-card is the competition and the industry landscape, which Zafirovski and Nortel have no control over. If consolidation gains momentum, Nortel may have no choice but to run into the arms of a suitor (Siemens?). If the Chinese suppliers (Huawei, et al) start gaining market share, Nortel may have slash costs and get rid of some business units. If the telecom carriers scale back spending….Well, you get the idea. Nevertheless, Mike Z. is saying all the right things. To hear more of them, check out his presentation today at the Lehman Brothers Worldwide Wireless, Wireline and Media conference.
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Topics: Financials |
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