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Nortel 920-196 : BCM 50/200/400 Sales Engineering Exam

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Test Number : 920-196
Test Name : BCM 50/200/400 Sales Engineering
Vendor Name : Nortel
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Nortel questions

The Nortel breakup: commonly asked questions | 920-196 actual questions and PDF Download

Toronto-based mostly Nortel, which has misplaced US$7 billion over the past three years, has been in bankruptcy protection in view that Jan. 14. Its board of administrators has gotten smaller to 3 from nine, and CEO Mike Zafirovski left the business remaining month.

The way forward for Nortel’s products and enterprise remains doubtful. whether you’re a Nortel person or a proud Canadian who wonders what will occur to what was once Canada’s telecommunications research powerhouse, you probably have a number of questions. We’ve finished the most useful they are able to to supply solutions, in accordance with interviews and testimony earlier than the condo of Commons Standing Committee on business Science and know-how, which held an emergency hearing remaining month.

For more counsel check out the Nortel interactive timeline

what will develop into of the enterprise unit?

this is a rely of hypothesis.

Avaya’s agreement to buy the unit, which makes switches, routers, IP phones, unified communications and protection items, is known as a stalking horse bid. below guidelines set via bankruptcy courts, different organizations can region competing offers for the same property.

Ronald Gruia, essential analyst for rising telecom with Frost & Sullivan, has referred to that put together, both companies would have more than 20 IP phones. It isn't probably Avaya would preserve all of them after a merger. but he added it makes feel for Avaya to keep Nortel’s contact centre products, because consumers have invested some huge cash in practicing on them.

One Nortel client is familiar drug maker Cobalt pharmaceuticals Inc. of Mississauaga, Ont. which makes use of Modular integrated Communications device (MICS). The company is “seriously considering the fact that” switching to Ottawa-primarily based Mitel Networks Corp., noted Stephen Lem, Cobalt’s director of IT.

Lem pointed out he's concerned Avaya may also no longer support all current Nortel items if it receives Nortel’s enterprise unit. Avaya would no longer say how it plans to integrate the items, only pointing out that the public sale has not taken location yet.

however in the brief time period, Avaya’s offer is respectable for enterprise patrons, observed Brownlee Thomas, a Montreal-based mostly important analyst at Forrester research Inc.

“For Nortel, it says ‘We’ve acquired hope,’” Thomas stated on the time the deal became introduced in July. “Of route they don’t all the time understand how lengthy these items might be supported.”

What else is Nortel selling?

Nortel introduced nearly a yr in the past it desires to sell its metro Ethernet unit. so far, no patrons had publicly announced offers.

Nortel has offered to promote for US$1.13 billion the provider instant property to LM Ericsson, which already has a lab in Montreal.

Ericsson will get Nortel’s CDMA items and continue to sell them to instant carriers. Gruia speculates Ericsson will be able to

promote device an extra two years and service the networks for at least one other 4 years after that.

Ericsson will additionally get a non-exclusive licence to use Nortel’s future Evolution (LTE) patents, together with about 400 Nortel

personnel engaged on LTE. Ericsson was the successful bidder in an public sale that begun in June with a $650 million stalking horse bid

from Nokia Siemens Networks.

Will the executive overview the sale?

perhaps. accurate posted reviews quoted top Minister Stephen Harper announcing the deal “could be examined under the investment Canada Act.” network World Canada known as the prime Minister’s office to confirm this was accurate. A spokesperson did not answer the query and asked us to e-mail the questions however has no longer replied.

The investment Canada Act requires business Canada to overview all acquisitions by means of international corporations exceeding $312 million. besides the fact that children Ericsson would pay US$1.13 billion, Nortel’s chief approach officer, George Riedel, told the condo of Commons trade, Science and know-how committee the “ebook value” of the property Ercisson desires to buy is barely $149 million.

Committee member Brian Masse, New Democratic birthday celebration MP for Windsor West, disputed Riedel’s declare, arguing the legislations states the $312 million cutoff refers to “enterprise value.”

although, Marie-Josee Thivierge, trade Canada’s assistant deputy minister for small enterprise and marketplace functions, later testified the $312 million determine is really the book cost. She talked about the price would need to be recorded on probably the most contemporary year’s financial statements, comply with commonly permitted Accounting ideas (GAAP) and were audited.

Why would Ericsson pay $1 billion if the property are simplest value $149 million?

Two reasons. the first is, Ericsson needed to outbid Nokia Siemens Networks’ US$650 million offer.

The booklet cost, Riedel talked about, refers to present property and stuck assets. It does not encompass “intangibles,” which might consist of patents, logos and a future price of existing customer contracts. When questioning business Canada officers, Masse referred to businesses which are being got by means of foreigners “can have any ebook value they need.”

Masse looks to be correct. In a separate interview, the Canadian Institute of Chartered Accountant’s vice-president of requisites, Ron Salole, spoke of publication price might also consist of intangibles, however doesn't ought to.

“All it skill is the value of assets you’ve received to your books,” Salole observed. “It depends upon the business’s accounting policies.”

What are the political issues across the sales?

The sale of the service wireless unit did not get the consideration of opposition politicians except July 20, when analysis in movement

Inc. asked for a evaluation, claiming there are feasible countrywide protection concerns.

Neither the Liberals nor the NDP have made any noise about Avaya’s present to buy the business unit.

Mike Lazaridis, RIM’s co-chief government officer, testified that RIM tried to purchase Nortel’s LTE patents prior this yr. RIM officials then found out about Nokia Siemens Networks stalking horse bid, which carried very nearly the identical phrases as Ericsson’s acquisition and include a licencing contract for LTE.

The indisputable fact that it now covered a licensing agreement “was a extremely unpleasant shock” for RIM, Lazaridis testified. The licensing settlement “renders Nortel’s LTE property of restrained value to RIM,” Lazaridis introduced.

Mike Lake, Conservative Member of Parliament for Edmonton-Mill Woods-Beaumont, asked Lazaridis even if he become considering that legal motion in opposition t Nortel.

“We did consider it,” Lazaridis replied, including: “We haven’t comprehensive evaluating all their alternate options up to now.”

Ontario finance minister Dwight Duncan claims the “financial system should be harmed” if the sale to Ericsson is accredited and questions Ericsson’s commitment to keeping Nortel jobs in Canada.

The crux of research in motion’s argument is that via losing LTE patents Canada’s countrywide security could be at risk as a result of LTE may be used in networks used by means of the emergency capabilities, together with the Canadian Forces, throughout emergencies. The branch of national Defence refused to comment on this.

but Mark Tauschek, lead analyst for information-Tech research group, questions RIM’s claim. It doesn't count who operates an LTE community, Tauschek noted. The fine and reliability of public wireless networks in Canada aren't going to be modified if a different brand owns the underlying patents.

during his testimony, Lazaridis referred to as on industry Canada to initiate a four-means dialogue between the government, Nortel, Ericsson and RIM.

Marc Garneau, a Liberal MP, retired naval engineering officer and former astronaut, supported this request.

“before enabling Nortel’s property to go away the nation, they need this review to make sure the proposed sale is of ‘internet improvement’ to Canada,” Garneau wrote in a letter to the govt. Garneau apparently missed the testimony declaring the LTE property will remain with Nortel and be licensed, on a non-exclusive basis, to Ericsson. Ericsson is getting the CDMA belongings, to be able to dwell in Canada at its existing facility in Ottawa.

how many jobs would analysis in motion have kept?

Lazaridis dodged this question all over testimony before the house of Commons Standing Committee on trade, Science and technology.

Bloc Quebecois MP Robert Bouchard, in contrast to the Liberal and NDP participants, was no longer taken in by means of RIM’s spin doctoring. Bouchard requested Lazaridis twice to provide details on the personnel.

“we'd have continued to grow the funding that Nortel has pioneered,” Lazaridis stated, with out proposing numbers. “There are excellent personnel.”

Lazaridis talked about RIM become committed to continuing to function Nortel’s CDMA business, but didn't have “a chance to really be mindful the transaction or the details” because RIM would have had to signal a non-disclosure contract.

against this, Ericsson officers promised the enterprise, which already has 1,900 personnel in Canada, would make use of 800 greater as a result of the acquisition. About four hundred of those would work on long term Evolution, Ericsson Canada president Mark Henderson testified earlier than the committee.

“it'll operate largely as a separate business” in Ericsson and be “headed by its current management,” he said, adding Ericsson would hold Richard Lowe, Nortel’s president of provider networks.

all over his testimony, Lowe noted Ericsson is “committed” to holding 2,500 Nortel jobs as a part of the transaction, that means about 1,700 American Nortel employees would retain their jobs.

Nortel would hold the LTE patents, opposite to claims with the aid of RIM and Garneau that Nortel’s belongings would “depart the country.”

Will Nortel live on after all of this? in that case, the place will the revenue go?

These questions were posed by way of Anthony Rota, Liberal MP for Nipissing-Timiskaming, Riedel referred to Nortel desires to sell its “major organizations” but will hold its LTE patents if the Ericsson deal is closed.

As of Aug. 7, “no process has been put forward to contend with” the LTE patents but Nortel plans to post a plan to the bankruptcy courts for approval, Riedel testified.

either way, the Nortel they knew — which employed one hundred,000 people in 2000 and had US$28 billion in revenues — could be long gone continually.

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