It’s interesting to see the pragmatic – if somewhat unenthusiastic reaction – among analyst to Nortel’s $2-billion deal with Verizon Wireless, which was announced yesterday. It’s almost like no one is willing to jump back on the bandwagon even though Nortel appears to have gained some momentum with a key customer. A good example is Sanford C. Bernstein analyst Paul Sagawa, who told the Globe & Mail that Nortel will be getting about $400-million of business year from Verizon, which is close to what it’s already been selling to the largest wireless carrier in the U.S. “Nortel’s got some 20-per-cent share of the Verizon network, and they’re going to [continue to] get that unless they do something really egregious to lose it,” he said. “Basically it’s an expansion and upgrade to an installed base that’s already there.” Nortel shares climbed 3.1%, or 75 cents, yesterday to $24.50 in New York.
Analysts Pragmatic About Verizon Contract
It’s interesting to see the pragmatic – if somewhat unenthusiastic reaction – among analyst to Nortel’s $2-billion deal with Verizon Wireless, which was announced yesterday. It’s almost like no one is willing to jump back on the bandwagon even though Nortel appears to have gained some momentum with a key customer. A good example is Sanford C. Bernstein analyst Paul Sagawa, who told the Globe & Mail that Nortel will be getting about $400-million of business year from Verizon, which is close to what it’s already been selling to the largest wireless carrier in the U.S. “Nortel’s got some 20-per-cent share of the Verizon network, and they’re going to [continue to] get that unless they do something really egregious to lose it,” he said. “Basically it’s an expansion and upgrade to an installed base that’s already there.” Nortel shares climbed 3.1%, or 75 cents, yesterday to $24.50 in New York.
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