Comments on: $1-billion, Please

By: soundslikesourgrapes

soundslikesourgrapes — Sat, 13 Jun 2009 06:03:22 +0000

Debt.
What are you talking about.
They don't have debt.
Remember the word bankruptcy protection.

By: yes4aapl

yes4aapl — Sat, 13 Jun 2009 05:41:27 +0000

Asset_Number_XXX
re
You are right in general sense of free market economy. That's the idea but the world is not the ideal one. Nortel failed in part because the fierce competition and direct ZTE and Huawei attack. Are the mentioned companies using fair play? I don't think so. As long as there is no fair play in the market you can write books about your ideas.
I say
There is a need for political solution to Nortel's problems! .
Someone has to clean the mess and start it again.
Nortel will have to die in the form in which it is now but can be born again in another form or shape.
btw
The group is not seeking a government loan, as was previously reported. Ian Craig stressed,

"A group led by former Nortel president Robert Ferchat is hoping to raise $1 billion to keep the company in Canadian hands and is asking the government to delay the sale of its assets"
the article says..
Is Nortel veterans' call to save company falling on deaf ears?
By: Nestor E. Arellano and Greg Meckbach
http://www.itworldcanada.com/a/Daily-News/1641d...

By: Asset_Number_XXX

Asset_Number_XXX — Sat, 13 Jun 2009 04:46:09 +0000

“In bailing out failing companies, they are confiscating money from productive members of the economy and giving it to failing ones. By sustaining companies with obsolete or unsustainable business models, the government prevents their resources from being liquidated and made available to other companies that can put them to better, more productive use. An essential element of a healthy free market, is that both success and failure must be permitted to happen when they are earned. But instead with a bailout, the rewards are reversed – the proceeds from successful entities are given to failing ones. How this is supposed to be good for our economy is beyond me…. It won’t work. It can’t work… It is obvious to most Americans that we need to reject corporate cronyism, and allow the natural regulations and incentives of the free market to pick the winners and losers in our economy, not the whims of bureaucrats and politicians.” Ron Paul – Nov 2008

Why buy the parcel of land with the crummy house on it, when the street has plenty of clear ones to build on? It is my belief that employees are jaded beyond resurrection. I mean no offense, don't speak in anyone's name, just share my observations.

By: soundslikesourgrapes

soundslikesourgrapes — Sat, 13 Jun 2009 02:03:22 +0000

Debt.
What are you talking about.
They don't have debt.
Remember the word bankruptcy protection.

By: yes4aapl

yes4aapl — Sat, 13 Jun 2009 01:41:27 +0000

By: Asset_Number_XXX

Asset_Number_XXX — Sat, 13 Jun 2009 00:46:09 +0000

By: TongueInCheek

TongueInCheek — Thu, 11 Jun 2009 22:47:27 +0000

A new article on this topic is available on itworldcanada

http://www.itworldcanada.com/a/Leadership/1641d...

which includes the following statement:

"The former executives are currently approaching financial organizations to help raise $1 billion -- enough cash, they hope, to gain a seat in bargaining table and get a peek at Nortel's most current data to be able to fine-tune their restructuring plans for the company. The group is not, Craig stressed, seeking a government loan, as was previously reported."

By: Nortelian

Nortelian — Thu, 11 Jun 2009 13:55:26 +0000

Those installed DMS machines are all targets for CS2K & CS1500. Not all will transform but many will. There is certainly no money in the TDM hardware business but there still is in SW & services associated with those machines. I get orders all of the time. That base does continue to generate revenue, albeit not like it used to because of the decline in telco wireline access lines from wireless, cable, and CLEC competition.

Agreed that AcN & UE9K were dogs. Too complex & expensive (in typical Nortel fashion). The WDM PON product though is ahead of the competition and as of right now, there is not a single vendor out there with comparable technology. It is the only access product that Nortel has and the business is not just the ONT's. The OLT's and PON blades are a vital part of that business.

Lastly, product cost has been an issue for Nortel as long as I've been with them. If they would do away with the ridiculously lengthy & complex WIN form process and move to a quicker. simpler, approval process for pricing, quotations, and other administrative functions in general, the LC's could begin to cut cost from their products. Everyone is too focused on the trees to see the forest.

But again, I see no reason to just throw this all away. Check out AlcaLu's recent numbers. They're worse than Nortel's. NT is not the only vendor experiencing these problems at the moment. Just the one with the most debt.

By: vvvv

vvvv — Thu, 11 Jun 2009 12:56:44 +0000

Problem is, those installed DMS machines aren't generating revenue for Nortel anymore. Most carriers have frozen the software loads and have taken the switches off hardware maintenance. With declining TDM traffic, the carriers have more than enough spare parts to service the switches themselves indefinitely. Besides, Nortel and its CMs can't manufacture most of the DMS packs anymore.

JR did get Nortel out of the access business. Can't second-guess him on that; the portfolio of AccessNode, UE 9000, UE IMAS, etc was a loser. Ironically, access turned out to be a hot market. Maybe LGN can sell ONTs, but that's only part of the opportunity. In any event, LGN would be better off alone -- just like Arris, who did splendidly after they completely broke away from Nortel.

There is definitely demand for softswitching. If Nortel had their product cost under control, maybe they could monetize the demand. But product cost is a killer in many (most?) Nortel businesses.

By: Nortelian

Nortelian — Thu, 11 Jun 2009 12:54:09 +0000

You can believe what you want. I've been in Nortel sales for over two decades. Telecom in general for almost four decades. I'm not a spring chicken. I've been through the Roy Merrills and Des Hudson days. I've seen Paul Stern nearly destroy this company & watched Jean Monty revive it.

Optical strengths: WDM PON, OME6500. MEN: ERS8600. All are very strong and are market leaders in their respective segments. The Fed Govt & military both use ERS8600 extensively and the army just executed another large contract installing hundreds more. Only exception being WDM PON which is still new in the space, but well ahead of the competition. The CVAS portfolio, #1 worldwide. Don't take my word for it, Dell 'Oro just reported it this week.

If you believe everything the analysts say, I have a bridge you might want to buy. The fact that you believe analysts any more than Nortel's fraudulent execs tells me something about your beliefs. How many of those same analysts have been correct (or even close) over the past decade of market prognostication.

Short of giving you my employee ID, I'd have no way to prove my Nortel sales credentials. I prefer my anonymity because I do still need a paycheck. And what do caps have to do with this? Seriously. You must be someone who has been hurt by Nortel, so am I. I won't elaborate so as to maintain my anonymity. You are painting all of Nortel with the same brush and that's just not appropriate. Don't blame me or any other rank & file worker bees for the fraud at Nortel. I have been equally disgusted by it. Letting that blind you to the value that does exist though is shortsighted at best. Since 2000, Nortel exec management has been intent on killing the goose that laid the golden egg to put more money in their pockets. None of them ever addressed the $12B in debt accumulated prior to the bursting of the internet bubble. So now we all pay the price for that.

I DO (caps intended for emphasis) talk with customers every day. Nearly all ILEC's have pulled back and it's not because they dislike Nortel. It's because they are under severe competitive and market pressures. They are losing access lines & revenues and are struggling to make ends meet. I have customers whose revenues are down by 25%. Certainly not their choice, but many of them have never had to seriously compete before and are at a loss to respond. A drop like this does affect spending.

I agree that the fraud at Nortel is overwhelming, but those of us at my level, continue to work hard, focusing on keeping our customers. You seem to be more intent on cursing the darkness that is Nortel's position these days. I prefer to light a candle and work through it.