Nortel Opens Office in Lagos

Nortel in Nigeria? Where were they when the race started in 2000. For them it's too much too little too late...I don't think they can compete. Other vendors with strong hold in Nigeria will eat their lunch and dinner. But then again I could be wrong.

See the natives flock to the Nortel job fair:

http://www.youtube.com/watch?v=aIzptExMRcA

This is a better turn of events than during the Roth/Dunn years whe Lagos opened an office at Nortel. .

France Telecom sees Africa growth despite crisis

http://www.reuters.com/article/rbssTechMediaTelecomNews/idUSLI58178120081118

Or maybe I'm totally wrong. Bergers website was much fancier in the early 90s.

Questions for Observer: Has Berger run its course like Cisco? How have they thus far avoided hiring American managers who don't know (the) culture? Will the global bear kill Berger, too? Whose path into the the global village should Nortel follow?

Good old DMS would be robust enough to survive in Lagos - plus its too big to cart off by hand. But I couldn't imagine an ATCA surviving very long there under even the best conditions.

Simplicity trumps complexity. Fine. I expect keeping a simple yet durable network up and running would take precedent over frilly upgrades and rapid expansion, but wheres the big payoff in that? That would mean serious commitment.
Prestige isn't everything. Cmon, Paris Hilton recently did her share to save Africa by posing with native South Africans in Africa. That puts her in the same stratosphere of nobility as Sean Penn visiting Hugo Chavez if you ask me.

Nortel would do well to crib from 100+ year firm Julius Berger

http://www.julius-berger.com/index.php?id=29

which has been operating in Nigeria forever (by African standards).


To offer innovative... cost effective solutions...conceptual ideas, engineering, design, procurement, construction ..* long term maintenance*.

To sustain... extremely short construction schedules... achieved by a continuously trained and skilled Nigerian workforce *and a fleet of modern... equipment*

To assist in the fight against HIV/AIDS

To be the most capable and trustworthy indigenous multi service construction company in Nigeria all for the benefit of the Nation.

Berger doesn't stand around giving away balloons, marble plaques and cheap pens with "Berger" tampo'd on them.

Not sure what they are smoking...

"I want to thank you for joining me for today's GIS broadcast from Toronto to Nortel sites around the world. This is an important moment for our company. We need to be clear about our purpose and show the world that we have a future and a plan for getting there.
I believe Nortel can be a strong partner for our customers today and for the long-term. We have made very good strides in the past three years. Today, we have leading innovations and solutions ahead of the market and people who know how to deliver the business value our customers need.
To succeed we must execute flawlessly on the plan I laid out during our broadcast. I believe it is the right plan for these times. If we follow this path, we will emerge a stronger and more competitive Nortel in the future.
The roadmap is clear for moving this company forward:
• We are focusing intensely on preserving cash so that we will be able to invest for growth in our future
• We are implementing cost-saving initiatives, including restructuring, that are designed to enhance our efficiency in this marketplace
• We are creating a leaner, more streamlined company that can be agile and responsive to our core customers
I ask you to maintain your focus on our objective. Work to drive down costs and drive up sales. Understand the realities of a tough marketplace, but use them to seize share and have faith that we will succeed in the end. In return, you have my commitment that I will do everything in my power to clear the path ahead as we move into the future.
By building a more cost-effective and productive organization, we give Nortel a chance to succeed. By connecting with our customers and earning their loyalty in tough times, I believe we have more than a chance. Delivering value will win their business -- the key to our future.
We are on the road to that future. We are determined to get there. Let’s show what we can do.
Mike "

If anyone's been out of NA, they would know that Nortel is not well known and that market has been exploited by Europeen companies for many years. Alcatel being one of the biggest suppliers to Africa.

As well, you'll need to put a lot a bucks in corruption as it is all there is there unless you have previous claim (ie French with northern Africa).

This does not mean there isn't opportunity. But NT would have the undercut the likes of Alcatel by quite a margin to be able to win any substantial.

NT_e_2000,

You think there is no corruption with NA channels and customers? Obviously you have never visited “Warehouse 51”; a mysterious location in the industrial area of Denver within two miles of Qwest HQ. I understand a certain, high-powered Valley VC of Indian decent was a frequent visitor. Just follow the money…--bb

When you need to specify a location, that means it isn't too bad. I'm not saying there is no corruption in the world except Africa. Let's be realistic. But Africa as a whole continent is corrupt... EVERYWHERE. I tried starting a small startup in northern Africa.... the overhead of corruption alone made me stop.

You missed my point...--bb

:) I thought wharehouse 51 was in RTP where they kept moving inventory back and forth across the county lines to avoid paying property taxes

That was 'warehouse 52' :)..--bb

You got my point......many

There will be no real growth in 2009 anywhere in the world. This is a global synchronized recession.

China's interest in Africa is driven by its desparate need for natural resources. Countries in Africa are typically short of money but they are blessed with these. So, they are very open to deals that accept natural resources as payment. As they are often so low developed, that they could not even explore their treasures in soil, a partner that would even unearth them on its own is very attractive, And this is the Chinese business model. Chinese mining companies are often even given permission to unearth the respective resources under their own control. In Sudan and Angola, it is oil, in Angola copper and cobalt, in Zimbabwe, platine, South Africa, iron ore and coal... and it goes on and on.

As their reward, China offers investments into infrastructure like power plants, road construction, railway and last but not least telecommunication. Typically 70% of all contracts need to be awarded to Chines companies.
In particular in Nigeria, China has committed to spend 4 billion dollars to repair the countires ramshakled infrastrukture, offering complete all-in-one solutions, financing, construction, training to the locals...
And, not to be underestimated, China gives a shit on political correct and transparent governance and like to call democratic change an "internal affair..." Well, after all not their favorite subject anyways...
China did nothing to stop the genocide in Darfur, even they are known to have a big influence on the Sudan government....

Long story short, unless you can't offer a creative win-win deal, a "bigger" contract might be tough to close. Delivering your product and simply asking for money thereafter may not be attractive ....

If you work in Africa, you pay bribes to top people in government. The China has no problem with this, but can a company like NT do this and not have Mike Z go to jail?

Makes absolute sense from a Chinese perspective. Natural Resources in exchange for jobs, infrastructure etc. This will play out well until China implodes, which it surely will. The burgeoning population, disparity between rich and poor, brutal pollution standards, skyrocketing human illnesses and corruption at the highest levels will take their toll. Just a question of when.
Again from a chinese point of view like huaweii or zte, this makes absolute sense, not to mention how those two companies fit right into the African mindset scheme of Corruption, Cheap Quality, Slave labour. Basically damaged, dangerous goods at a fraction of the cost. I think the two were made for each other. All under the watchful and helpful pockets of the chinese emperoristic communist party.
Now however looking at it from Nortels View, and a North American view what
sense does it make? I will tell you. NONE.
Another strategic blunder in a long lineage of strategic blundering decisions by mike and the board. Surely this first office is a step towards trying to emulate their heroes at Huaweii and ZTE. They are setting their ducks up again.
Good God!!!
But you see, it ain't gonna work.
We have Nortel that gets absolutely no relief or help from its mother government. We have Nortel head officed in North America. The richest continent in the world. Canada does not need natural resources and the only thing the africans can offer in return are more cheap, useless dangerous goods like we get from the chinese, not to mention a grossly incompetent telecomm standard in any shape or form. Canada has what, 30 milion people? Hardly enough consumers to gain anything from this venture. And please please tell me what does Nortel gain by establishing a bigger foothold there?
Surely you can't be thinking about 2013 at this stage of the game?
It is kind of ironic isn't it. On the one hand you have the Chinese government pushing their folks (huaweii etc) to set up shop in Africa in exchange for Natural Resources. They are getting something for it and helping the Chinese in their own country in countless ways. On the other hand you have Nortel running around making poor decisions because the Canadian Government has no interest and it looks like Nortel have nothing to contribute to the Canadian economy besides jobs. In effect Canadians are losing their jobs and there is no gain whatsoever back in Canuckistan. . So in one instance you have the government persuading the chinese execs and on the other hand you have the canadian execs running away from the government. But can you blame them? Greed and Reality of how Canada takes care of its own take precedence. Even Canadian companies buy from Huaweii etc. Witness the Bell Canada deal signed recently.
No wonder the Chinese are taking over the world!!!
So folks let me ask you this.
Where is the most pitiful, unstable, corrupt, unintelligent, cheap labour source on the face of the earth?
Answer is quite easy. It is Africa.
Now NT with all their current problems comes out and announces they are setting up shop in Nigeria of all places.
Let's look at Nigeria. Corruption is rampant.
I am sure more than a few of you are quite familiar with the nigerian internet scam con artists from that hole perpertrate. They make a living or attempt to make one in North America and Europe with their counterfeit proposal about how mister X won X amount of money. The nigerians are the most corrupt fraudsters on the face of the earth. They actually takes course on it in grade school to learn how to live with no conscience. They have to because they all are desperate to get out of their own country. Talk to a Nigerian about what it is like to live in Nigeria. So now NT plans to move there in a small capacity, with bigger plans in mind. What is next? How about "Work for food" or they'll have armed gunmen protecting them from the warlords so long as they work for NT.
The NT saga just gets sicker and sicker.
Who is running the show? Jim Lahey, Sybil, beavis and butthead, Lucy and Ricky Ricardo?
All I can say is WOW and all I can do is drink another 40.
Keep up the master plan Mike and BOD.
You are doing a breathtaking, "groundbreaking" job.
The hole gets deeper by the day. I guess they believe you can dig through to China if you go deep enough?
By the Way. This is for you Mister China. If you ever think you are going to get that 500 billion loan you gave Uncle Sam back, think again. The Canadian government would pay you back with interest and rewards. Not the Americans. You can kiss that money goodbye. They'll let you buy real estate and then say you are a security risk and have you deported. The jokes on you.

Sounds like you only want to sit there and wait for help from somebody. Nortel now is so ugly just because the people like you are all siting there and crying "mam~~~~"

Wrong Turd.
NT is so ugly because of....
Bad Management
Too many executives, admin and managers.
Terrible Board of Directors.
Terrible successive CEO's.
Terrible support from the Canadian Government. No incentive to stay in Canada unless the dollar stays low.
Bad strategic decisions.
Outsourcing.

Continue crying. Nortel is going to be eliminated.....

Then you'll feel vindicated cause you were eliminated by them?

I practically begged them to spread into Africa; with FIFA’s 2010 World Cup being held in South Africa the entire world will be focused on this huge and hugely neglected market. Huawei and ZTE didn’t miss that calling; Nortel is now 3 years too little and too late…--bb

me too. execs only laughed it off.

Nortel already has two offices in South Africa - J'burg and Cape Town.

abc,

Having two offices there means jack $#!T! I have two offices in South Africa and I am start-up guy. Results and accountability. Oh, I forgot; not important at NT...--bb

Too late Nortel!
Competitors have already been there for years.
If you are thinking to move all NT to low-cost development center it can be a bit meaningful.

But is this move will survive NT?

Nortel is late bird, Huawai has been in Africa for long time.

They got a letter saying that the Prime Minister of Nigeria (His Esteemed Eminence Mboko Ngwana) wanted them to open an office, but first he needed to get $3M out of the country and could Nortel help? It was a strange letter as it was full of spelling errors and big words. So Nortel is opening an office and sending $1M as an advance to Mboko in cash and then they will get half of his $3M.

Hah, that was great. Exactly what I was thinking :)

i just got the same letter.. must be a mass mailing to nortel

Opportunity... From one of my favorite web sites

http://www.despair.com/opportunity.html

Update: Mike Z has finished his GIS and has jumped on the plane with the briefcase full of cash. Mboko will meet him at Lagos Airport but has asked that Mike meet him alone due to the confidentiality of the situation. Mike's last words at his GIS today were "we are pursuing novel methods to raise cash and are applying 6-Smegma to these methods".

for sure africa isn't a market that gets as much spotlight as china or india but still a market worth diving into. 200 million new users in 5 years certainly would make it a worthwhile investment and i think its a good move for them to show commitment to their customers and potential customers in the area.

More pumping statements from the most dedicated pumper of them all, again with no facts (yes I know that word makes you cry) to back them up.

The news article could say "Nortel investing in Unicorn and Magical Fairy Dust" and we would get much the same comment from notafan.

funny you should question the validity of my comment. first, its just an opinion. second, i'm simply restating what was said above and in the original article. (it was a trap, you see?) and it shows your motif for responding to my comments. but i've knocked you down several times before i knocked you out, twice. you need to step up to my weight class before you challenge again.

and i see you're working hard at nortel. and there you are blaming the management for its failures.

No. You are wrong again. While you joke about violence and restate lies, I am working my best at this company for which I am loyal to.

Funny how you blame me entirely for its failures while turning a blind eye to the various missteps this management has made. And I also find it weird that yesterday you claimed that all negative news about Nortel was lies, yet here you are admitting it has made failures.

No sir, you are the one who bends the truth to suit your needs, not I.

for someone who embraces "the truth", you rely too much on your assumptions:

1. when did i claim negative news on aan was lies? quote me on that
2. when did i deny that nortel is failing? quote me on that
3. when did i blame you 'entirely' for nortel's failures? quote me on that. i thought i made it clear that i was blaming you along with all other obvious reasons. it appears that nortel is obviously paying you to bash them

you continue to convince me that you're rubbish when it comes to reasoning. but indeed i must thank you for entertaining me. yes4aapl has taught you well

If you do indeed work at Nortel, then how hard could you possibly be working? You seem to spend more time on this freakin board than anybody else, so just when do you have time to "work"? Adding to that, you hardly sound loyal to the company either. I'm truly not trying to slam you here, but more just trying to understand where you're coming from. You seem to be very negative about Nortel overall (which is not totally undeserved) and rather rude to those that want to find some positives, even if they're grasping at straws sometimes. So when do you actually do work? Is this the kind of quality and dedication my clients can expect from your company?

You're right. How dare Nortel open an office to support their customers when they're supposed to die ... right...!

New ultra-low cost development center! We'll outsource PV/Test/CR work there!

Financing is key for infra deployment in these regions. Huawei has been doing a good job in financing these networks in Africa. NT won't be in any condition to win any of these businesses over there.

LAGOS, NIGERIA, Jun 25 (MARKET WIRE) --
Multi-Links Telecommunications Ltd., one of Nigeria's leading service
providers, has entered into a three-year frame contract with Nortel(1)
(TSX: NT)(NYSE: NT)to expand and upgrade its wireless network.

The initial phase of the contract has been awarded and is valued at US
$45 million. The enhanced network will use Nortel's CDMA 1xEV-DO Rev A
solution to bring high-speed mobile broadband services to Multi-Links'
growing subscriber base in the metropolitan region of Lagos, the prime
economic center of the country.

Lagos is the most populous urban area in Africa with more than eight
million people and Nigeria is the most populous country in Africa with a
population of over 140 million. However, even with large numbers of
potential subscribers, the country has an Internet penetration of only
6.75 percent, according to International Telecommunications Union
statistics. Nigeria is listed by Goldman Sachs as one of the "Next
Eleven(2)" economies with high growth potential, and is one of the
fastest growing in the world according to the International Monetary Fund.

http://www.reuters.com/article/pressRelease/idUS69692+25-Jun-2008+MW20080625

This will save NT's future ;-)

I worked construcion in Nigeria in the late 80s thanks to a spike in oil revenues. Noble leaders Babangida, Dasuki, etc. finally built their capital city, modern Abuja, but also spared no expense designing their private digs -
much like Nortel did in the late 90's.

Passing through there a few years later, I saw much of what we built had been pillaged, vandalised, neglected, shut down.

So whats Nortel looking like? Kinda like Nigeria.