Nortel Garage Sale Carries On

By Mark Evans | Published: September 22, 2009

Another day, another part of Nortel to auction off to the highest bidder. This time, the company plans to sell the software assets of its carrier division.

An interesting part of the proposed sale is it includes non-patent intellectual property, equipment and other related assets. Instead, Nortel said in a filing it will a non-exclusive license to “patent intellectual property”.

The deadline for bids is Oct. 16, while Oct. 28 has been set as the day for a hearing to approve the asset sale.

This puts the spotlight on Nortel’s attractive patent portfolio, and what role it could play in Nortel’s future. The scenarios include selling the patents – Research in Motion, for example, would love the LTE patents – or leaving Nortel as a patent-holding entity with no assets.

Source: Reuters

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  • scoop1985

    Is this the CVAS stuff/business unit?

  • Troller

    From the Reuters story, it sounds like software particular to route packets over existing wireless networks. If true, that's not really CVAS, which is predominantly wireline. But at the same time, if it is 3G wireless, I thought all that was in scope for the Ericsson deal. Is this maybe GSM and whatever was left behind in UMTS after the Alcatel deal of a few years ago?

  • zeroman

    Not CVAS. It is a GSM gateway that was halted. No revenue either. Tons of these gateways available so nothing special with this. Not giving the patents away is also a crap deal.

  • unknownPath

    poor M.E.N. oh how sad it is that it has been forgotten it seems by everyone

  • fakenortelinsider

    Ambiguity to the very end… Nortel: Business Made Stupid.

  • Tex_Dude

    Yes, recall that GSM/UMTS split up into 3 divisions (packet core, voice core, and access). I believe the packet core is mostly made up of gateway equipment along with some software.

  • zeroman

    Apparently small pieces being sold due to high costs. Which would beg the question what the hell were they doing in all these dead end businesses.

  • zeroman

    why would a lot of people want to buy a business that only puts in pipes and nothing else.

  • zeroman

    past Stupid. Business Made Senile

  • random123

    CVAS is Carrier Voice and Application Solutions.

    It doesn't just seem to be wireless, but wireline too. Carrier voice over IP. C all Server 2000's primarily, of which there are a LOT out there in operating companies, it seems. And the new A2E engine I guess. And gateways.

    It's soft switches. And at least someone thinks Nortel supplied more than anyone else according to this google-find
    http://www2.nortel.com/go/news_detail.jsp?cat_i…

    Another link: http://www.nortel.com/corporate/investor/collat…
    Note that it's 2008, inaccurate now. Best I could find with another quick Google.

    Check slide 6, breaking out the $6.6B market into its components (including TDM markets not yet converted).

    This is the gear that (some) big operators use to provide carrier hosted services.

    This isn't small.

  • GoProto

    Stretching out time, Collecting Bonuses.

  • joremero

    Yes, it's LTE's and GSM/UMTS's packet core being sold (or attempting to be sold)

  • zeroman

    not CVAS. Read the Reuters article closely.

  • happy2b

    What about poor old MEN, on the market for over a year with no buyers,
    people don't want a business with just a pipe, with bits in, bits out,
    crown jewel in more like dead wood.

  • Lookahead

    Manys on this board had already answered your mis-leading questions, I just repeat them here:

    Nortel put MEN on sale last November, but was interrupted by Chapter 11 filing later on January 2009, at that time, some medias said the potential bidders were more than 10 companies. Since then, not because nobody wants MEN, but cause Nortel never put it on table yet.

    Some NT hatreds like you here tried to bash Nortel assets as gabage, but after first two autions, we know 11.3B for CDMA and 900 millions for Enterprise. If those are gabage, I would like to have them. Don't you?

  • TongueInCheek

    Some of the Packet Core solutions are being used in partnership with Hitachi for the KDDI LTE Core project in Japan. The KDDI deal was a joint win for Nortel and Hitachi with Hitachi already securing a non-exclusive licensing agreement with Nortel.

    These assets could easily be of interest to Hitachi to secure the KDDI build and for future business.

  • GoProto

    Chill, … of course they are worth something. As we all know, there are Assets and Liabilities. The word Asset, inherently means the subject at hand is worth something. Then, there is Zero. ;>), and of course < Zero would be The Strangler, a Negative, or a Liability. =)

  • XPM_guy

    This Ottawa Citizen Article has more details:

    http://www.ottawacitizen.com/Nortel+auction+som…

    This is not CVAS, but some of the bits from Wireless that did not go with the CDMA sale, again excluding the LTE patents

  • rubdab

    Wow, what a deal, the company with 10B+ sales is offloading two major assets for a puny $2B.
    The company which twenty years ago had an average market capitalization of $40B will generate in a garage sale about $3B (for all assets).
    The assets quality must be way above garbage if someone is willing to pay 25 cents per each $1 in sales.
    Also, I agree with you, it is all “NT hatreds” and AAN fault that the company is under.
    It is shame that you didn't start the 'I believe' group earlier enough.

  • zeroman

    correction. MEN was on sale from last September. Nobody was interested. it was all hype from Nortel about several interested parties. I think nobody was interested, so they decided to go Chapter 11. Otherwise they would have sold MEN, auctioned off some other pieces and stayed in Enterprise.

    MEN has always been on the table. But like many other businesses it is mostly old stuff except a few new products.

  • zeroman

    sales are down as every business is losing revenue. the buyers just have to wait to buy rock bottom. Nortel looks to be desperate now to sell the other three units, which is not going quickly enough.

  • NT_NoMo

    Accounting 101: The “value” of an asset is really what a party is willing to pay vs. a “book-value”. This is referred to good (or bad) will

    Unfortunately in NT's case, there is a lot of “bad will” reflected in these sale prices due to their tarnished reputation from accounting scandals, pathetic management, deceipt, an miserable treatment of employees. “Our People are our Company”

    So for the employees that are left, they are mostly hiding (under their desks?) waiting for the next piece of bad news. It's been like that for quite some time now.

  • Zhacknightmare

    This is great news, at least Nortel will be still around to sue for unfair dismissal, shareholder lawsuits etc. etc.

  • Moose_Chaser

    CURRENT NORTEL EMPLOYEES:

    NOW HEAR THIS !

    NORTEL CORPORATE SECURITY IS MONITORING THIS BLOG-SITE !

    DO NOT POST ANYTHING HERE THAT DOES NOT COMPLY WITH NORTEL
    CORPORATE SECURITY PRACTICES !

    MC

  • Lookahead

    Do you dare for a bet to the next MEN auction in coming month? If there are less than 3 bidders, you win, otherwise I win. Sounds fair?

  • NTblinker

    How can they charge nortel workers(UNSECUREDs) under SECURITY check against the Nortel corporate.

  • wasthere

    I guest MEN is like a Michelangelo or a Leonardo da Vinci painting. In any auction, the best parts, the crown jewels are sold last ;-)

  • NortelSouth

    These are SGSN/GGSN products used in packet core wireless networks (in GSM/EDGE 2G, UMTS 3G and LTE 4G). Nortel installed base is almost null and there is no competitive edge from Nortel…

  • Moose_Chaser

    You have been warned.

    Trust me on this.

    MC

  • scalppeeler

    If Nortel people are posting away from work there is nothing too worry about.
    If they are posting from work that could be an issue, but touchy subject there.

  • GoProto

    Shouldn't this have been obvious from Day One?
    Who would not expect so?

  • GoProto

    Or, there is a Secret Code Hidden Somewhere.. Let's see, maybe it says: Dunn, Lowe and Others are Draconian Devils !! Or, maybe it has the code: 01 14 09 in Nortel Blue or whatever that pertinent (BK) date was, with a circle drawn around it…and a cariciature of The Strangler.. as Da Vinci's Vitruvian Man and the feminine diety he Assaulted inside the Circle..

  • GoProto

    Me thinks many scavengers will show up hungry.. you know, to bottom feed on the “garbage” most refer to.. we shall see..

  • zeroman

    good at least they will know how many employees are spending time web surfing than working.

  • forgive

    When will furniture sale start? There are quite some decent tables, chairs, cabinets worth buying.

  • nortelex

    Sound like the Packet Core group.

    I thought some of them already moved to Hitachi.

    Anybody knows what is going on with this group?

  • GoProto

    NT will probably auction off the desks, chairs, tables and of course, all of the GE light bulbs that they haven't already removed to save $ on the Utility bill.

    Hmmm.. who will be the Office Furnishings Stalking Horse? ;>}

  • forgive

    Anyone having chance to get CEO/CMO/CFO/CTO's chair may put it on Ebay.

  • GoProto

    Personally, I wouldn't touch them.. some Bad Karma may have adhered to the surfaces…

  • forgive

    Just wonder if there is any such Ebay chair (ever used by big name boss, like Bush, Obama etc) on sale?

    M.J's chair should have been listed on Ebay.

  • joremero

    Hitachi hired a good chunk of the packet core team, and now it's interested in more people as well as the products. I saw an article about Hitachi's interest.

  • whopperscan

    Pardon my ignorance but I can't see the rationale being floated here, of somehow separating the businesses (supposedly as going concerns) from their relevant patents. Surely this would drastically diminish value overall??
    Why would anyone buy a business like MEN or CVAS, with it's product future essentially ripped out of the sale, or at minimum available to some competitor? All you're left with is servicing an installed base, plus running out what few pre-bust contracts remain.
    Forget LTE… Nortel had no business there anyway, they lost the Wimax bet on it, so selling those patents make sense.

  • Many

    These are our core values. When we all commit to them, three great things happen:

    You always know what the standard is. You obtain guidance when you are making decisions.
    Everyone we work with gets a consistent experience and they know what they can expect. That's important when you work with people in as many countries and languages and cultures as we do.
    Great people want to come work with us and stay with us.

    Nortel is committed to keeping our core values front and center in everything we do. Leaders play an important role in this by coaching others, modeling the core values, recognizing the core values in action, and rewarding people for living the values. But everyone has a leadership role to play when it comes to keeping the values fresh and meaningful. We stay in touch with people's perceptions of how well we are living the core values through our periodic employee opinion surveys. Nortel performance management systems also recognize employees for living the core values.

  • Many

    These are our core values. When we all commit to them, three great things happen:

    You always know what the standard is. You obtain guidance when you are making decisions.
    Everyone we work with gets a consistent experience and they know what they can expect. That's important when you work with people in as many countries and languages and cultures as we do.
    Great people want to come work with us and stay with us.

    Nortel is committed to keeping our core values front and center in everything we do. Leaders play an important role in this by coaching others, modeling the core values, recognizing the core values in action, and rewarding people for living the values. But everyone has a leadership role to play when it comes to keeping the values fresh and meaningful. We stay in touch with people's perceptions of how well we are living the core values through our periodic employee opinion surveys. Nortel performance management systems also recognize employees for living the core values.

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