Joel Hackney Talks About Wireless Sale

By Mark Evans | Published: July 26, 2009

Joel Hackney, who heads up Nortel’s enterprise business, provides his thoughts about the sales of the CDMA and LTE R&D units to Ericsson.

What’s particularly interesting is a FAQ that includes this question about what Ericsson bought:

Substantially all of Nortel’s CDMA business, which is the second largest supplier of CDMA infrastructure in the world, and Nortel’s LTE Access assets giving it a strong technology leadership position in next generation wireless networks. The deal also includes some intellectual property rights but excludes a small number of 4G wireless patents.

Here’s the e-mail to enterprise employees:

Team,

As you saw in today’s press release and Zmail, Nortel has concluded a successful auction of substantially all of Nortel’s CDMA Business and LTE Access assets, with Ericsson emerging with the winning purchase price of US$1.13 billion.

Please join me in congratulating our carrier wireless colleagues and wishing them well as they strive to close this transaction as quickly as possible.

In order to ensure our Enterprise sales teams are prepared to address any customer questions that may arise, we have created a reference sheet that contains the key messages and a focused FAQ about today’s announcement.

In Enterprise, we remain committed to our own Stalking Horse process, which was announced earlier this week. Our auction date has not yet been determined, but I will continue to provide you updated information as it becomes available.

In the interim, I urge all of you to continue to be ambassadors for the Enterprise business and focus on our customers, ensuring their service and support needs are our top priority. As we have seen with the result of today’s auction, Nortel’s assets continue to be of significant value in our marketplace, and our job is to carry that message forward in the coming weeks as decisions are made about our own business.

Thank you all again for your commitment to moving through this auction with the same passion and professionalism you always bring to the table.

Joel Hackney

President Enterprise Solutions


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  • GoProto

    You mean that guy that always looked like he just sucked (and he did).. on a lemon? he was one piece of work, eh?

  • GoProto

    “Makes you wonder if there is a case for this? After all were not these special perks okayed by the courts for the purpose of restructuring. Since restructuring was never done (just a selloff) why were these incentives given out”
    ———————————————————————————————–
    re
    Excellent Point!!
    don't you think this was just another part of Z and BoD's Master Plan?
    Instead of a restructuring plan, they had a “Keep the Dough Rolling” Plan-into their pockets.
    Nice try, I guess they thought no one would ever pick up on this.
    But, now that it's out on the table-what can really be done?

    Anyone have any ideas on this?

  • sick_n_tired

    “Please join me in congratulating our carrier wireless colleagues”……..
    ====================================================

    WTF.. this guy has a gal to make this statement. No remorse, no heads hanging in shame that they were paid millions to turn around this ship and instead, they did everything possible to drown it .. and now they are congratulating the employees for getting sold.. the same employees who had hoped against hope and did the best they could to keep Nortel afloat.. they same employees who had been around in Nortel and more loyal than these GE Junkies.

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  • NTblinker

    Magnus Mandersson, currently head of Ericsson Northern Europe, has been named President of Ericsson CDMA operations, and Richard Lowe of Nortel the chief operating officer.

    Will R. Lowe be the COO of E/// or Nortel? if E/// then Does he preserve his other responsibilities(Nortel's GSM, IMS, VOIP, MCS) in Nortel's exec team?

  • mtvessel

    Perhaps he should ask the Nortel shareholders to join in his congratulations.

    Maybe these employees and executives should return the bonus money that they received this year. I can't see how anyone could accept it. This is money that belongs to the creditors.

  • tiredofitall

    Z and Hack sound surprised and pleased. Does this indicate what was sold doesn't merit this price or went for a premium.

    ==================================================

    Indicates they didn't have a clue about it's value. I wouldn't let these clowns manage my garage sale.

  • less

    http://www.newsobserver.com/104/story/448348.html

    2006

    For Hackney and the other members of the management team, Nortel represents a calculated gamble with a huge potential payoff. The company has been a whirling turnstile for corporate executives who begin with optimistic talk of ethical reform and end with an ungraceful exit. A successful recovery for Nortel would mint Zafirovski and his team as turnaround rock stars.

    “This is a once-in-a-lifetime opportunity where you can write your business case,” Hackney said. “I really think if we can make it happen in three to five years, we'll be on the cover of Fortune and every business magazine — all of us will.”

    Hackney said he left GE because he wanted the opportunity to work with Zafirovski again and to play a role in restoring Nortel's reputation. The downside, as he saw it, was that analysts and investors would demand instant results, whereas he and Zafirovski realized the recovery would take three to five years.

    Still, Hackney does not show a hint of doubt about his move.

    “If you look at my life, it's as if it was being built for this [Nortel] job,” he said

  • OffTheChains

    Uh, we left already.

  • zeroman

    COO of a new company unit Ericsson CDMA. This is a new entity but not sure if it will be a subsidiary.

  • GoProto

    Like leftbehind said several posts earlier in a different chain- this, for Z especially was all about him- HIS EGO, HIS ACCOMPLISHMENTS, HIS STAGE,HIS THEATRE. Wow- what a lifelong goal to have- to get yer picture on Fortune , um, uh I meant The Rolling Stone.
    Next time you wanna be a rock star, take guitar lessons instead of destroying a 115 year old company.

  • GoProto

    Still, Hackney does not show a hint of doubt about his move.

    “If you look at my life, it's as if it was being built for this [Nortel] job,” he said

    ————————————————————-
    re

    During what stage of your life was your assaulting woman in a parking lot being built HackAttack??
    Sick Loser

  • zeroman

    “This is a once-in-a-lifetime opportunity where you can write your business case,” Hackney said. “I really think if we can make it happen in three to five years, we'll be on the cover of Fortune and every business magazine — all of us will.”

    Fortune and every business magazine for sure. But as Worst Corporate Management.

    Sounds like a high school kid about to embark on a project.

  • zeroman

    all those unsolved cases on Duke campus.

  • GoProto

    Holy crap!! Never thought about that.

  • less

    Still, Joel can't be all wrong, all the time:

    “We all left great careers and huge opportunities to come here.”

    What was his first order of bidness:

    Hackney [distributed] a list of his personal values to all employees. It implicitly hit on many points that have plagued Nortel's corporate culture, chief among them:

    * people who make promises but don't deliver [MIke Z, BoD]
    * political or hidden agendas [get rich by any means necessary]
    * a victim mentality [missing, because above point was achieved

    "[Hackney] spent 20 minutes listening,” McKenna said. “Then he said, 'Come back in six hours. Tell me what we have to do to get to [our goal].'

    Oh, how about (3x) 12-18 months to restructure…

  • GoProto

    * a victim mentality [missing, because above point was achieved
    ————————————————————————————–
    Yeah, but don't forget about the victim(s) he created, one being a young woman in a parking lot…

  • zeroman

    ha ha. in his own words he is less jump more shot now. so he practiced jumping people, now he shoots them.

  • NortelTragedy

    Will employees of E/// CDMA get the same salary and benefits at Nortel? Or will they do like IBM recently did and offer US and CAN based workers jobs in 3rd world countries at local salaries, no ex-pat and no relocation?

  • TongueInCheek

    See page 86 of Docket #1176 for the following statement:

    “For the twelve (12) month period following the Closing Date (or for such shorter period as a Transferring Employee remains employed by Purchaser or a Designated Purchaser), such Transferring Employee, subject to applicable Law, shall be employed on terms and conditions of employment not materially less favorable, in the aggregate, than the terms and conditions of employment provided to such Employees immediately prior to the Closing”.

    Lots of other information on the sale agreement available in that document.

  • NTblinker

    i was previously very concerned about E/// 's purchase of Nortel CDMA NA operations but then as the things beome more clear, i think that it will be a good deal if the followings will be realized;

    - a subsidary generated as E/// Nortel(can also be only E///) operating in NA region.
    - president Magnus Mandersson and second man COO Richard Lowe
    - Richard Lowe also act as the president as Nortel other wireless businesses(except CDMA)
    Mike did a good thing for you NA employees if you think twice!

  • NTblinker

    i think presence of Richard Lowe in the new entity as a second man will also very good for the non NA employees including COE engineers in low cost regions.

  • less

    This means no pay cut until you get axed, which could be immediately

  • zeroman

    does that mean severance. lot of employees happy they will get a package at least if they get out.

  • tiredofitall

    Please don't suggest that these guys pick up the guitar. I couldn't handle it if they wrecked the guitar too.

  • yes4aapl

    I wish L Green would take Nortel head on.
    There is so much publicity because $50 Mill scam in Montreal but $400 bill fraud has no press. It would be interesting to see who lost money on Nortel and who won $400 bill!

  • GoProto

    Don't worry, it won't happen. Too much work , not enough money. They already have a hobby – Monopoly, with Blood Money.

  • protosphere

    So what about after 12 months?

  • tiredofitall

    You're probably right. Besides, learning to play guitar requires a plan…

  • gray1975

    Would someone tell me what this guy Hackney has done for Nortel. He always tries to tell us how passionate he is…..his protege flim flanagan is another beauty with the passionate bs….these guys should be driving taxis.

  • smokeemout

    Who will win the bid for Nortel's enterprise unit?

    you be the judge
    Vote here

    http://www.learnmyself.com/personality.asp?p=ta…

  • 27539

    “these guys should run over by taxis.”

    fixed it for ya

  • 27539

    “these guys should run over by taxis.”

    fixed it for ya

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