Comments on: Nortel-BSNL: Round II

By: Apple

Apple — Wed, 09 Jul 2008 02:44:48 +0000

You're right, it is a moving target. The most accurate number that I've seen suggests Nortel lost $308 million on revenue of $248-million in 2004/2005 from the BSNL contract, which was originally worth $500-million before Nortel moved to scale it back. This information comes from Nortels 2005 annual report.
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re
Mark, if what you said were true it would be even worse than loss/revenue ratio I present...

Your ratio shows much more than $1 loss on $1 revenue.
I remember NT reported about $340 mill in revenue from that deal /and the loss was $327 mill at that moment... probably end of 2006/
Do you know that Nortel reported another loss in Q1 2008 on BSNL? I think it was around $30 mill.
I have no time to dig it now.... anyone can comment on the Nortel's losses on BSNL deal? The Owens BSNL deals...

By: Apple

Apple — Tue, 08 Jul 2008 22:44:48 +0000

By: Mark Evans

Mark Evans — Tue, 08 Jul 2008 11:13:39 +0000

You're right, it is a moving target. The most accurate number that I've seen suggests Nortel lost $308 million on revenue of $248-million in 2004/2005 from the BSNL contract, which was originally worth $500-million before Nortel moved to scale it back. This information comes from Nortels 2005 annual report.

Here's how Nortel explained the losses:

"The losses are primarily driven by the existing contractual terms negotiated in response to pricing pressures as a result of the competitive nature of India’s telecommunications market and an increase in project implementation costs. The time limit within which BSNL could exercise its 50% business expansion option under the contract has passed and we will not supply BSNL with products or services for this expansion."

For what it's worth, the departure of Gary Kunis as COO was much to do with the India contract. Kunis did not think it was a good idea and fought tooth and nail to get away from the deal. Owens, however, was adamant about Nortel doing business in China.

By: Apple

Apple — Tue, 08 Jul 2008 00:24:21 +0000

Apple,

The loss seems like a bit of a moving target – different places cite different figures – but I will do some digging and come back with an accurate number.

Mark
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Mark, did you do the digging?

By: Apple

Apple — Sat, 31 May 2008 14:42:21 +0000

http://www.telegraphindia.com/1080531/jsp/jhark...

Jamshedpur, May 30: The BSNL mobile subscribers are facing a harrowing time in Jamshedpur for the past one month.

Disruption in connectivity has now made subscribers consider the BSNL mobile service as a “B-grade” service provider. The poor connectivity would continue for two more weeks.

Basic electronic equipment is being replaced in all the 101 BSNL towers set up across Jamshedpur. According to a highly placed source in BSNL’s Jamshedpur secondary switching area, BSNL was earlier using Nortel equipment, but now the department is using Ericsson equipment.

“We are replacing Nortel machinery with Ericsson equipment since the past one month. We expect the work to be over by mid-June,” said R.K. Mishra, the general manager, BSNL, Jamshedpur.

Sources said the replacement work is being carried out in full force and the disruption in connectivity was fallout of this work.

The department has to suspend the functioning of the BSNL mobile tower to carry out the work.

“The mobile service is found disrupted for hours at a stretch. The poor connectivity will cause similar inconvenience for at least a fortnight,” said the officer.

There is a total of 1,69,376 BSNL mobile users in Jamshedpur. BSNL mobiles are preferred by businessmen and professionals since it is both cost-effective and has coverage even in remote areas in the district. But over the past month, the BSNL service has deteriorated.

“The recent trouble is not only hampering business to a great extent, but has also made me realise that only depending on BSNL mobile would not help,” said a leading transporter N.K. Jha.

Jha said till recently he subscribed to BSNL mobile only, but the recent disruption has forced him to subscribe to another service provider. “Now I have more faith in Reliance mobile than in BSNL. Though it does not have vast infrastructure, Reliance service is as good as any other private service provider,” added Jha.

“The earthing system in BSNL mobile towers is flawed. Contractors assigned to install the earthing system do their job without maintaining the required standards. Consequently, electronic equipment fitted in the towers get damaged during thunderstorms, causing disruption in mobile phone services,” said Mishra.

Over the past one month, BSNL mobile service has been disrupted at least 13 times.
question
Who will cover the bill
...
We know that ERICs charges around $100 a line to replace..

By: Apple

Apple — Fri, 04 Apr 2008 19:17:32 +0000

I am still waiting for someone to explain it to me how NT will make money on $40 /line deal from BSNL.
Is it too much top ask all the bulls on NT?
Does NT have magic formula to to be profitable at $40 when Erics is not sure of profits at $100/line?
What is that formula, please?

By: Apple

Apple — Mon, 31 Mar 2008 23:49:24 +0000

When I come here and see how an information can be presented & transformed, I really have the impression to be in Paris in 1942.
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re
BBC
Why don't you say what you mean?
It's not ww2 anymore
You can speak your mind.
Do you find unstrung article misleading?
It's most reputable source I know.
Tell us your ideas!
What's propaganda in your opinion?
I was never wrong about bsnl_nt $500 mill deal.
In my calculation NT should ask $1,3 bill for the deal but the deal was signed for $500 mill only!
$800 below the market price!

By: bbc

bbc — Mon, 31 Mar 2008 22:17:48 +0000

During world war II the BBC was involved in the propaganda war against occupied France and the Nazi-controlled Radio-Paris, announcing periodically “Radio Paris ment, Radio Paris ment, Radio Paris est allemand” (Radio Paris is lying, Radio Paris is lying, Radio Paris is German). When I come here and see how an information can be presented & transformed, I really have the impression to be in Paris in 1942.

By: Apple

Apple — Thu, 27 Mar 2008 22:51:48 +0000

Apple, there are no public facts related to the Total Contract Value, Total Number of Lines,
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re
What you are talking about?
Did you read Unstrung article?
There is everything there what I need to know and ask my questions_speculation. If you can't add to the topic, why don't you just stfu and wait for someone with IQ to comment.
If we see 13 mill lines and $1.3 bill deal bsnl_erics everyone knows it is $100 a line!
If we see $200 mill deal equally divided to 2 vendors for 5 mill lines we know it is $40 /line deal for NT.
You don't have to come to this blog to stop our speculations, do you?
Is speculating on blogs about companies_deals_stocks permitted in USA?
Yes it is.
What about Canada?

By: Nortel_will_survive

Nortel_will_survive — Thu, 27 Mar 2008 16:11:05 +0000

Apple, there are no public facts related to the Total Contract Value, Total Number of Lines, Gross Margin in the deal, if this is for new Base Stations or Card Upgrades to exisiting Base Stations. All of this information is being held private between Nortel and BSNL which is their right.

You however are posting fabricated and misleading information with no basis in fact simply because you hate Nortel and want to see them destroyed.

You may be Mark's biggest fan, but most of us are getting sick and tired of your false and misleading information.

Good to see that Bo Gowan has come forward with some additional information.