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Test Number : 920-807
Test Name : Nortel Unified Communications Solutions: Business & Technology Fundamentals
Vendor Name : Nortel
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Nortel questions

The Nortel breakup: commonly asked questions | 920-807 Latest Questions and Practice Test

Toronto-based Nortel, which has lost US$7 billion over the last three years, has been in chapter insurance policy in view that Jan. 14. Its board of directors has gotten smaller to 3 from 9, and CEO Mike Zafirovski left the enterprise remaining month.

The future of Nortel’s products and company remains doubtful. whether you’re a Nortel user or a proud Canadian who wonders what is going to take place to what become as soon as Canada’s telecommunications research powerhouse, you likely have a few questions. We’ve finished the premier they will to deliver solutions, in response to interviews and testimony earlier than the apartment of Commons Standing Committee on trade Science and expertise, which held an emergency hearing closing month.

For extra assistance try the Nortel interactive timeline

what's going to become of the enterprise unit?

here is a count number of speculation.

Avaya’s agreement to purchase the unit, which makes switches, routers, IP telephones, unified communications and safety products, is called a stalking horse bid. below guidelines set by means of bankruptcy courts, other groups can vicinity competing offers for a similar assets.

Ronald Gruia, main analyst for emerging telecom with Frost & Sullivan, has observed that put together, each businesses would have more than 20 IP phones. It is not doubtless Avaya would maintain all of them after a merger. however he delivered it makes feel for Avaya to maintain Nortel’s contact centre products, as a result of customers have invested some huge cash in working towards on them.

One Nortel client is frequent drug maker Cobalt prescribed drugs Inc. of Mississauaga, Ont. which uses Modular integrated Communications equipment (MICS). The company is “severely for the reason that” switching to Ottawa-primarily based Mitel Networks Corp., pointed out Stephen Lem, Cobalt’s director of IT.

Lem mentioned he is concerned Avaya may not aid all current Nortel items if it receives Nortel’s commercial enterprise unit. Avaya would now not say how it plans to integrate the products, simplest mentioning that the public sale has not taken region yet.

but in the brief term, Avaya’s offer is first rate for commercial enterprise consumers, spoke of Brownlee Thomas, a Montreal-based mostly most important analyst at Forrester analysis Inc.

“For Nortel, it says ‘We’ve obtained hope,’” Thomas mentioned at the time the deal became introduced in July. “Of direction they don’t all the time know the way long these items should be supported.”

What else is Nortel promoting?

Nortel announced almost a 12 months ago it wants to promote its metro Ethernet unit. to this point, no patrons had publicly announced offers.

Nortel has provided to sell for US$1.13 billion the service instant property to LM Ericsson, which already has a lab in Montreal.

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

promote machine another two years and service the networks for at the least one more 4 years after that.

Ericsson will additionally get a non-exclusive licence to use Nortel’s long term Evolution (LTE) patents, along with about four hundred Nortel

personnel engaged on LTE. Ericsson become the winning bidder in an public sale that began in June with a $650 million stalking horse bid

from Nokia Siemens Networks.

Will the government overview the sale?

possibly. contemporary published studies quoted prime Minister Stephen Harper saying the deal “can be examined below the investment Canada Act.” network World Canada called the prime Minister’s workplace to confirm this changed into accurate. A spokesperson didn't reply the query and requested us to e-mail the questions but has not spoke back.

The funding Canada Act requires trade Canada to assessment all acquisitions via international businesses exceeding $312 million. however Ericsson would pay US$1.13 billion, Nortel’s chief approach officer, George Riedel, told the apartment of Commons trade, Science and expertise committee the “booklet value” of the belongings Ercisson wants to purchase is just $149 million.

Committee member Brian Masse, New Democratic party MP for Windsor West, disputed Riedel’s claim, arguing the legislation states the $312 million cutoff refers to “commercial enterprise value.”

although, Marie-Josee Thivierge, industry Canada’s assistant deputy minister for small business and industry functions, later testified the $312 million figure is really the booklet price. She referred to the value would need to be recorded on the most accurate year’s fiscal statements, agree to commonly authorised Accounting principles (GAAP) and had been audited.

Why would Ericsson pay $1 billion if the belongings are most effective value $149 million?

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

The book price, Riedel spoke of, refers to present assets and fixed assets. It doesn't consist of “intangibles,” which could consist of patents, emblems and a future price of present consumer contracts. When questioning industry Canada officers, Masse noted companies that are being got by way of foreigners “can have any publication price they need.”

Masse looks to be proper. In a separate interview, the Canadian Institute of Chartered Accountant’s vice-president of requirements, Ron Salole, referred to booklet price can also encompass intangibles, but doesn't should.

“All it capacity is the cost of assets you’ve bought to your books,” Salole mentioned. “It is dependent upon the company’s accounting guidelines.”

What are the political concerns around the earnings?

The sale of the carrier wireless unit did not get the consideration of opposition politicians unless July 20, when research in motion

Inc. requested for a review, claiming there are feasible national security considerations.

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

Mike Lazaridis, RIM’s co-chief govt officer, testified that RIM tried to purchase Nortel’s LTE patents earlier this year. RIM officers then found out about Nokia Siemens Networks stalking horse bid, which carried pretty much the same terms as Ericsson’s acquisition and consist of a licencing settlement for LTE.

The indisputable fact that it now included a licensing agreement “was a very disagreeable surprise” for RIM, Lazaridis testified. The licensing contract “renders Nortel’s LTE assets of confined cost to RIM,” Lazaridis added.

Mike Lake, Conservative Member of Parliament for Edmonton-Mill Woods-Beaumont, asked Lazaridis no matter if he became due to the fact criminal action in opposition t Nortel.

“We did believe it,” Lazaridis replied, adding: “We haven’t entire evaluating all their alternate options thus far.”

Ontario finance minister Dwight Duncan claims the “economy will be harmed” if the sale to Ericsson is approved and questions Ericsson’s commitment to holding Nortel jobs in Canada.

The crux of analysis in action’s argument is that through dropping LTE patents Canada’s country wide safety could be in danger as a result of LTE could be used in networks used by way of the emergency features, including the Canadian Forces, during emergencies. The branch of national Defence refused to comment on this.

but Mark Tauschek, lead analyst for information-Tech research neighborhood, questions RIM’s claim. It doesn't rely who operates an LTE community, Tauschek noted. The best and reliability of public wireless networks in Canada don't seem to be going to be modified if a unique company owns the underlying patents.

right through his testimony, Lazaridis called on industry Canada to provoke a four-manner dialogue between the government, Nortel, Ericsson and RIM.

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

“before allowing Nortel’s belongings to leave the country, they need this overview to be sure the proposed sale is of ‘net advantage’ to Canada,” Garneau wrote in a letter to the government. Garneau apparently neglected the testimony pointing out the LTE property will stay with Nortel and be licensed, on a non-unique groundwork, to Ericsson. Ericsson is getting the CDMA property, to be able to reside in Canada at its existing facility in Ottawa.

how many jobs would research in action have kept?

Lazaridis dodged this query all through testimony before the house of Commons Standing Committee on industry, Science and expertise.

Bloc Quebecois MP Robert Bouchard, in contrast to the Liberal and NDP contributors, turned into not taken in through RIM’s spin doctoring. Bouchard requested Lazaridis twice to provide details on the personnel.

“we would have persisted to grow the investment that Nortel has pioneered,” Lazaridis noted, without presenting numbers. “There are surprising personnel.”

Lazaridis observed RIM was committed to carrying on with to operate Nortel’s CDMA enterprise, but did not have “an opportunity to truly have in mind the transaction or the particulars” because RIM would have had to signal a non-disclosure contract.

by contrast, Ericsson officials promised the enterprise, which already has 1,900 personnel in Canada, would make use of 800 extra because of the acquisition. About 400 of those would work on long run Evolution, Ericsson Canada president Mark Henderson testified before the committee.

“it is going to function mostly as a separate enterprise” in Ericsson and be “headed with the aid of its current administration,” he referred to, including Ericsson would keep Richard Lowe, Nortel’s president of service networks.

throughout his testimony, Lowe said Ericsson is “dedicated” to conserving 2,500 Nortel jobs as part of the transaction, which means about 1,seven-hundred American Nortel personnel would retain their jobs.

Nortel would hold the LTE patents, opposite to claims by RIM and Garneau that Nortel’s assets would “depart the country.”

Will Nortel continue to exist after all of this? if so, the place will the revenue go?

These questions have been posed by way of Anthony Rota, Liberal MP for Nipissing-Timiskaming, Riedel observed Nortel wants to sell its “essential corporations” but will hold its LTE patents if the Ericsson deal is closed.

As of Aug. 7, “no manner has been put ahead to deal with” the LTE patents but Nortel plans to publish a plan to the chapter courts for approval, Riedel testified.

both manner, the Nortel they knew — which employed a hundred,000 individuals in 2000 and had US$28 billion in revenues — might be long past invariably.

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