See Discovery Semiconductors http://www.chipsat.com/products/coherentsystems…

(this is 10gbaud DP-QPSK, so it scales to 40gbit)

See Discovery Semiconductors http://www.chipsat.com/products/coherentsystems…

(this is 10gbaud DP-QPSK, so it scales to 40gbit)

Never mind China where they buy lionshare in their own backyard and most of NT's business is in North America.

http://www.theglobeandmail.com/servlet/story/RT…

Analyst George Notter at Jefferies & Company Inc. in San Francisco calculated that Nortel's wireless business produced operating profit last year of $911-million (U.S.). The main driver was its gear for a digital cellphone technology known as CDMA (code division multiple access), which generated between $746-million and $774-million in operating profitability.

Even if Nortel is first to get LTE to market, the technology is unlikely to match CDMA for profitability. Mr. Notter describes Nortel's CDMA business as a “gravy train,”

http://www.cbc.ca/money/moneytalks/2008/04/andr…

“Nortel growing its revenue stream in the single-digits in 2008 and 2009, but will see the disproportionate amount of profit coming from CDMA, an area that should experience declining revenues over the next few years.”

“even potential customers, to question whether the company will be around five years from now.”

Nortel’s revenue and profit come almost entirely from sales of wireless software and equipment based on an aging technology known as C.D.M.A.

CDMA is generating nearly 200 per cent of Nortel's operating income

Unfortunately for Nortel, this cash cow is going out to pasture within the next few years.

the company forecast its CDMA revenues to decline at 4% per year between 2007 and 2011.
But in the second quarter the CDMA business fell 10% year over year. In other words, in 12 months it fell almost as far as Nortel had expected it to fall over 2.5 years

No one knows for certain when because insolvency has not formally forecast by traditionally optimistic Nortel yet. They are trying to sell another key division. We see increased red flags like Moody's warning, Altzman score is outrageously high, increasingly commentary towards this end after struggling so long losing money selling asssets and printing paper to live another day, reflected in the stock price which is now half when they last neared folding, etc..

I would guess by Christmas and I fear their Q3 results will not do them no favors either, especially if they come in even wore than they forecast. Not that they have a great forecasting track record calling $20 a buy just last Aug/07. They also have a poor track record with acquisitions buying revenues. As they sell UMTS, or try to MENs revenues if they are lucky enough to get a buyer which I doubted from inception contrary to popular belief at that time.

Also, I would like to take this opportunity to state for the record I most certainly do not wish any ill will towards their good employees as Clit accuses here, that's fabricated slander and just outright mean spirited. Quite the contrary, I do not like the ongoing layoffs the endless suffering induced by this company on so many lives. Their endless contradictions are sure to foster and fuel staunch criticism. I take no great pleasure personifying the company as a turd and not their good employees.

This company has displayed an endless comedy of error, or some real bad luck since even heads prevailed, with endless aspirations failing, and now time has run out selling assets and printing paper to live yet another day to prolong the inevitable to now catalyzing their death spiral to zero now.

Now, cash cow gravy train CDMA accounting for almost all their earnings has commenced steep decline after already losing money for a decade where I believe this has become past the point of return. I hope I am wrong but I have not been so far.

So, I believe we will get their making front page for the final time, besides the fraud trials, sometime this year as they eagerly try to sell MENS for much needed cash to put more coal in their employees stockings with layoffs. We'll see, this Canadian saga is beyond interesting stuff, it is outright unbelievable. I think a lot more would have been better off if they folded at 43 cents presplit. This 3 to 5 year plan doesn't seem like it is doing ongoing terminated employees shareholders 90% later any favors let alone customers who just might go on strike all at once. It's a car wreck, perhaps worth more in parts than whole, but who wants even parts of them now?

However, keeping the heads isn't going to solve anything, either. This is the proverbial rock and a hard place.

Replacing “Z” does one huge thing: psychologically it represents an acknowledgement his plan is not in Nortel's best interest and that a change is coming. At that point, the next step becomes crucial and must be done quickly and efficiently: replace him with a known, competent industry CEO, easier said than done.

There are only two replacements that need to occur immediately: Hackney and Roese. Again, if competent replacements are put in place then the turnaround can begin in earnest. No wholesale replacements; it's unnecessary and would be tremendously destabilizing rather than helpful.

Optimum? Not by a long shot, but better than the alternative if Nortel hopes to continue as a major player in the telecomm industry.

Optical to Huawei, Cisco or Fujitsu. Likely latter two.
Enterprise to IBM.
Wireless CDMA to Ericsson.
Services will be broken up tied to products. NOCs etc will be sold off to India BPOs

This will bring in enough to retire debt, pay out exec severances and shareholders to end the business.

-Transportation (moving [of] products that is not actually required to perform the processing)
-Inventory (all components, work-in-progress and finished product not being processed)
-Motion (people or equipment moving or walking more than is required to perform the processing)
-Waiting (waiting for the next production step)
-Overproduction (production ahead of demand)
-Over Processing (due to poor tool or product design creating activity)
-Defects (the effort involved in inspecting for and fixing defects)”

When and where I worked at Nortel this boiled down to CYA via countless e-mails, and further e-mail verfications thereof, then cut-and-pasted into myriad documents and action logs at every step, so each these neatly recorded tasks could be e-mailed on up the pipe and analysed.

E-mail is “green” as it generates no paper waste. Duly noted. But it didn't seem to improve customer satisfaction. Neither did removing office light bulbs to save everyone money.