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Nortel stock drops 15% in Q2 (US)

  • August 4th, 2008
  • 12:42 pm

Nortel’s turns out to be the second vendor to suffer loss in the second quarter with the week demand for CDMA equipment. Nortel’s stock drops around 15%.  Net Loss recorded $113 million compared with a $37 million dearth in second quarter last year. “Nortel faces a challenging business environment with increasing risk due to general macro-economic weakness, continuing competitive pressures and potential of further reduced capex spending by key North American CDMA customers,” the company said.
Revenues fell by 5% year on year to $2.62 billion. Moreover, sales grows in all divisions except the carrier group, the largest segment by revenue, which saw a 2% decline to €667 million (US$1.04 billion). The services group saw a 9% rise to  (US$536 million). Despite the losses, CEO Mike Zafirovski is quite hopeful and said Nortel was on track to meet guidance for the year.

Nortel, the official network infrastructure partner for London 2012 Olympics (UK)

  • July 31st, 2008
  • 10:34 am

Nortel has been selected as the official network infrastructure partner and a London 2012 tier one sponsor, by The London Organising Committee of the Olympic Games and Paralympic Games (LOCOG).

Nortel, as the official network infrastructure partner, will provide BT, London 2012’s communications services partner with the equipment to enable wide area networks, wireless LAN, call centre and fixed telephony infrastructure that is required by LOCOG to stage the games. It will also form a part of LOCOG’s technology team, which also includes Atos Origin, BT and Samsung and these organisations will help them in delivering the communications for the Games.

Nortel will receive exclusive marketing rights and usage rights to the London 2012 brand within its sector. Nortel is working with London 2012 and partners to reduce the environmental impacts of hosting the games by reducing the carbon footprint of the products they supply for the games. Nortel will also contribute to London 2012’s education programme by providing resources and training to students across the UK.

   

India seeks bids for €4.2bn GSM deal

  • May 12th, 2008
  • 2:46 pm

India’s state-run telecom firm BSNL has invited bids for a contract valued at over €4.2 billion (US$6.5 billion) to supply 93 million GSM lines.

“At about US$70 [€45.33] per line, the tender could be worth over US$6.5 billion (€4.2 billion],” company director S. D. Saxena was quoted as saying.

He also said equipment makers such as LM Ericsson, Nokia Siemens Networks, Motorola, Nortel Networks, Alcatel-Lucent, Huawei Technology and ZTE are expected to participate in the bidding process, the Reuters report said.

All the bids will be opened on July 16.

“It should take six to eight months to award the tenders,” he said.

Unlisted BSNL is trying to expand its network to compete with rivals including Bharti Airtel and Vodafone Essar.

Saxena said the 93 million GSM lines would include 3G, services, “depending on the release of spectrum by the government,” while the remaining will be used for 2G.

   

 

Nortel, Juniper and Virgin Media trial 40G

  • May 7th, 2008
  • 2:09 pm

Nortel revealed it is working with Virgin Media and Juniper Networks to increase the operator’s capacity to 40Gbps, up from 10Gbps. The North-South UK is in response to the increasing demand for bandwidth-intensive entertainment services, including video-on-demand, catch-up TV, multimedia communications and faster internet access, with 20Mbps and 50Mbps trials.

The 40Gbps trial was conducted over a 350km span of Virgin Media’s existing 10G network in the UK, showing how existing optical network assets could be optimised and the network scaled to achieve high transmission rates.

Nortel confirmed it provided 40G Adaptive Optical Engine DWDM transponder cards, which interconnected with Juniper Networks T-series routers with 40G interfaces located at sites in Manchester and London, for the trial.

The trial was conducted last month, carrying 40G traffic generated by Virgin Media and delivering over its long-haul optical network between Manchester and London. Virgin Media claimed it is the first UK operator to offer 40G wavelength services between UK locations and confirmed it is now looking to deploy, enabling it to continue to grow and scale new premium-quality business and entertainment services.

   

Motorola, Nortel in talks on mobile network venture - report

  • February 11th, 2008
  • 1:00 pm

Motorola and Nortel Networks are in talks to combine their mobile infrastructure units in a joint venture, people familiar with the situation told the Wall Street Journal. A combined group would have annual sales of around USD 10 billion, substantially improving the two companies’ competitive position versus larger groups like Ericsson, Alcatel-Lucent and Nokia Siemens Networks. The joint-venture talks have been under way for nearly a month and are heating up, the paper’s sources said. The scenario under discussion is a venture majority owned by Nortel, with Motorola owning a minority stake. The companies had considered taking 40 percent each of the venture, with the other 20 percent to be held by a financial investor. But that idea was discarded after they had trouble finding a source of private equity.

   

Verizon picks LTE for 4G mobile broadband network (USA)

  • November 30th, 2007
  • 2:41 pm

US mobile operator Verizon Wireless plans to develop and deploy its fourth-generation mobile broadband network using the Long Term Evolution standard. The selection of LTE provides Verizon Wireless and its shareholder Vodafone with an opportunity to adopt a common access platform, compatible with existing technologies of both companies. Currently Verizon uses a CDMA network, but it has recently announced a policy to open its network to all types of devices and applications. Vodafone meanwhile uses GSM networks. Verizon and Vodafone have a coordinated trial plan for LTE that will start in 2008. Trial suppliers include Alcatel-Lucent, Ericsson, Motorola, Nokia Siemens and Nortel.

   

Microsoft unveils unified communications product range (USA)

  • October 17th, 2007
  • 2:07 pm

Microsoft has unveiled a range of new products for business unified communications and VoIP. These include the Microsoft Office Communications Server 2007 for delivering VoIP, video, instant messaging, conferencing and presence within Microsoft applications such as Office, Dynamics ERP and CRM. Also available is the Microsoft Office Communicator, a client software for phone phone, instant messaging and video communications that works across the PC, mobile phone and web browser, and Microsoft Office Live Meeting, the latest version of the software company’s conferencing platform. Microsoft RoundTable is a new conferencing phone with a 360-degree camera view of meeting participants and recording features. Microsoft also unveiled Unified Communications Open Interoperability, a qualification program to ensure that Microsoft unified communications software works with telephony systems. Seven manufacturers including Polycom and LG-Nortel have already announced phones and devices compatible with the new Microsoft products, while software and equipment makers such as Genesys, Plantronics, NEC, Ericsson, Mitel, Dimension Data and Nortel are also working on integrated products.

   

Far EasTone picks Nortel for mobile WiMAX (Taiwan)

  • October 12th, 2007
  • 12:24 pm

Far EasTone Telecommunications has selected Nortel equipment for its mobile WiMAX network in Taiwan. As a participant in the government’s M-Taiwan initiative, FET will offer mobile broadband services across Taipei County. Once deployed, subscribers will be able to use the network to access high bandwidth services such as streaming video, music, IPTV, VoIP, video conferencing and corporate applications from nearly anywhere using laptop computers or other WiMAX-compatible devices. FET’s network will be built from Nortel’s Mobile WiMAX Solution portfolio with MIMO capability, including 16e Base Stations and an Access Service Network Gateway. Nortel will also provide network management services from its Global Services portfolio.

   

FAA to get mobile WiMAX network (USA)

  • September 26th, 2007
  • 12:38 pm

The US Federal Aviation Administration (FAA) is to get its own mobile WiMAX network to improve the safety and efficiency of its air-traffic control service. The FAA has awarded a contract to Nortel Government Solutions, part of Nortel Networks, and ITT Corporation, with WiMAX deployments expected to begin in 2009. The vendors say that the end products will feature secure and flexible radio frequency functionality from ITT’s Aerospace/Communications Division, WiMAX infrastructure from Nortel, and integration and deployment services from Nortel Government Solutions.

   

 

 

Telecom Argentina/Telecom Italia/Telefonica: Confused? You will be…

  • September 10th, 2007
  • 7:07 am

Argentine investment group Grupo Werthein, the second largest shareholder in fixed line incumbent Telecom Argentina, would consider acquiring Telecom Italia’s (TI) stake in Telecom Argentina reports BNamericas, quoting local daily Infobae. However, another paper, El Cronista, has quoted a TI source as saying the firm is not considering a sale. Telecom Argentina is controlled by a company called Sofora, which has a 83% stake in Nortel Inversora, the holding company that owns 54.7% of Telecom. Sofora is 50%-owned by TI, with 48% held by Grupo Werthein and the remaining 2% by France Telecom (FT). TI has a 2009 call option for the 50% of Sofora it does not own, although analysts believe it will probably only go for the minor stake held by FT. Grupo Werthein has a call option on FT’s 2% stake in 2013, but TI has priority.

Last month, Grupo Werthein issued a statement voicing his concern that Spain’s Telefonica could influence decision making at Telecom Argentina as a result of Telefonica agreeing to indirectly acquire a 23.6% controlling stake in TI. This move led to local competition commission CNDC to begin a study of Telefonica’s potential impact on Telecom Argentina. The incumbent’s board quickly downplayed Werthein’s claims, saying the Telefonica-TI deal would not interfere in its structure. Grupo Werthein fears it will be pushed out of Telecom Argentina if TI executes its 2009 call option. Analysts believe that TI will want to increase its stake in Telecom Argentina, and will do so, unless the CDNC rules that Telefonica’s influence in TI would be excessive. One analyst, Emiliano Wachs of Grupo SBS, said ‘It is impossible to think that Telecom [Italia] will want to sell its stake [in Telecom Argentina] as the mobile business in emerging markets is growing…Telecom Italia has control of the situation, [unless] the antimonopoly commission creates obstacles to the Telefonica/TI operation.’