Nortel Networks, the Canada-based centenarian telecoms infrastructure provider currently restructuring under bankruptcy protection, faces an ignominious end as rivals queue up to buy select parts of the terminally ill company.
The Wall Street Journal reports that Nokia Siemens Networks (NSN) has tabled an offer to buy selected assets that include the still-healthy carrier networks business as well as potentially valuable intellectual property centering around next-generation broadband wireless technologies, such as LTE (long term evolution).
With LTE networks expected to be rolled out rapidly by some of the world’s biggest network operators in the near future, Nortel’s apparent willingness to relinquish ownership of patents and research into this nascent standard provides a clear indicator of just how terminal the vendor’s condition has become. It will also be interesting to see where any rival bids will come from, given the opportunity this purchase represents for gaining traction in the North American, European and Asian markets, where Nortel has previously done brisk business.
At the same time, other reports indicate that infrastructure companies - such as Avaya and Siemens‘ Enterprise Communications business - and a growing number of private equity groups are participating in an auction of Nortel’s enterprise infrastructure and solutions assets. Meanwhile, Genband has been linked to a bid for Nortel’s telecoms media gateways products business, and smaller parts of the company have already been sold in recent weeks.
When Nortel first announced plans to restructure and emerge from bankruptcy in better shape to compete in the current wireless broadband-centric marketplace, I thought this was an over-ambitious goal and quietly thought that what remained of the once-mighty equipment supplier would not make for a viable continuing business.
I think recent developments will prove me right and that, ere long, another telecoms giant will vanish from view.
I’d like to be proved wrong. But the end for Nortel, it seems, is nigh.
Tags: Avaya, bankruptcy, carrier networks, carrier solutions, enterprise networks, enterprise solutions, Genband, infrastructure, LTE, media gateways, Nokia Siemens Networks, Nortel Networks, restructuring, Siemens, VoIP, wireless, wireless broadband