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Test Number : 922-072
Test Name : BCM50 Rls. 3.0- BCM200/400 Rls. 4.0 & BCM450 Rls. 1.0 Installation- Configuration & Maintenance
Vendor Name : Nortel
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Toronto-based mostly Nortel, which has misplaced US$7 billion over the past three years, has been in bankruptcy insurance policy given that Jan. 14. Its board of directors has gotten smaller to three from 9, and CEO Mike Zafirovski left the enterprise closing month.
The way forward for Nortel’s products and company remains doubtful. whether you’re a Nortel user or a proud Canadian who wonders what will occur to what turned into once Canada’s telecommunications research powerhouse, you doubtless have a number of questions. We’ve done the gold standard they are able to to deliver answers, based on interviews and testimony before the condominium of Commons Standing Committee on business Science and expertise, which held an emergency hearing last month.
For more suggestions take a look at the Nortel interactive timeline
what will turn into of the business unit?
here's a count of speculation.
Avaya’s contract to buy the unit, which makes switches, routers, IP telephones, unified communications and protection products, is called a stalking horse bid. under guidelines set by bankruptcy courts, different companies can area competing offers for the same belongings.
Ronald Gruia, major analyst for rising telecom with Frost & Sullivan, has talked about that put together, each enterprises would have greater than 20 IP phones. It is not possible Avaya would hold all of them after a merger. however he delivered it makes experience for Avaya to retain Nortel’s contact centre products, as a result of valued clientele have invested a lot of money in practicing on them.
One Nortel consumer is regular drug maker Cobalt pharmaceuticals Inc. of Mississauaga, Ont. which uses Modular built-in Communications equipment (MICS). The business is “significantly due to the fact that” switching to Ottawa-primarily based Mitel Networks Corp., said Stephen Lem, Cobalt’s director of IT.
Lem said he's concerned Avaya might also now not aid all current Nortel items if it receives Nortel’s business unit. Avaya would now not say how it plans to integrate the products, only stating that the public sale has not taken area yet.
however within the short time period, Avaya’s offer is respectable for commercial enterprise buyers, pointed out Brownlee Thomas, a Montreal-based mostly foremost analyst at Forrester research Inc.
“For Nortel, it says ‘We’ve acquired hope,’” Thomas pointed out on the time the deal became announced in July. “Of route they don’t always know the way long these items should be supported.”
What else is Nortel promoting?
Nortel introduced pretty much a 12 months in the past it wants to promote its metro Ethernet unit. to date, no patrons had publicly introduced presents.
Nortel has offered to promote for US$1.13 billion the carrier wireless property to LM Ericsson, which already has a lab in Montreal.
Ericsson will get Nortel’s CDMA items and proceed to promote them to wireless carriers. Gruia speculates Ericsson could be able to
sell machine a different two years and repair the networks for at least an additional four years after that.
Ericsson will additionally get a non-unique licence to use Nortel’s long term Evolution (LTE) patents, together with about four hundred Nortel
personnel working on LTE. Ericsson turned into the successful bidder in an public sale that started in June with a $650 million stalking horse bid
from Nokia Siemens Networks.
Will the government evaluation the sale?
might be. contemporary published experiences quoted top Minister Stephen Harper announcing the deal “could be examined below the investment Canada Act.” network World Canada known as the top Minister’s workplace to ascertain this changed into correct. A spokesperson didn't answer the query and requested us to electronic mail the questions however has now not replied.
The funding Canada Act requires industry Canada to assessment all acquisitions via international corporations exceeding $312 million. youngsters Ericsson would pay US$1.13 billion, Nortel’s chief strategy officer, George Riedel, informed the apartment of Commons business, Science and technology committee the “e-book cost” of the property Ercisson desires to buy is only $149 million.
Committee member Brian Masse, New Democratic birthday party MP for Windsor West, disputed Riedel’s declare, arguing the legislation states the $312 million cutoff refers to “commercial enterprise cost.”
youngsters, Marie-Josee Thivierge, business Canada’s assistant deputy minister for small business and marketplace features, later testified the $312 million figure is in fact the booklet price. She stated the price would must be recorded on the most fresh yr’s fiscal statements, comply with frequently approved Accounting concepts (GAAP) and had been audited.
Why would Ericsson pay $1 billion if the belongings are best value $149 million?
Two explanations. the first is, Ericsson needed to outbid Nokia Siemens Networks’ US$650 million present.
The publication value, Riedel said, refers to current property and stuck assets. It does not include “intangibles,” which might consist of patents, emblems and a future value of existing customer contracts. When questioning business Canada officers, Masse stated companies that are being obtained by means of foreigners “can have any e-book price they want.”
Masse looks to be proper. In a separate interview, the Canadian Institute of Chartered Accountant’s vice-president of standards, Ron Salole, talked about book value may additionally consist of intangibles, but does not should.
“All it skill is the cost of belongings you’ve received on your books,” Salole observed. “It depends upon the company’s accounting policies.”
What are the political concerns across the income?
The sale of the provider instant unit did not get the consideration of opposition politicians unless July 20, when research in action
Inc. requested for a assessment, claiming there are possible country wide protection issues.
Neither the Liberals nor the NDP have made any noise about Avaya’s present to buy the enterprise unit.
Mike Lazaridis, RIM’s co-chief executive officer, testified that RIM tried to buy Nortel’s LTE patents past this 12 months. RIM officials then discovered about Nokia Siemens Networks stalking horse bid, which carried pretty much the equal terms as Ericsson’s acquisition and encompass a licencing settlement for LTE.
The undeniable fact that it now covered a licensing agreement “became a extremely unpleasant surprise” for RIM, Lazaridis testified. The licensing agreement “renders Nortel’s LTE property of restrained value to RIM,” Lazaridis delivered.
Mike Lake, Conservative Member of Parliament for Edmonton-Mill Woods-Beaumont, asked Lazaridis even if he changed into on account that felony action in opposition t Nortel.
“We did agree with it,” Lazaridis spoke back, adding: “We haven’t comprehensive evaluating all their alternate options to date.”
Ontario finance minister Dwight Duncan claims the “economic climate could be harmed” if the sale to Ericsson is authorised and questions Ericsson’s dedication to keeping Nortel jobs in Canada.
The crux of research in action’s argument is that by way of dropping LTE patents Canada’s country wide security can be in danger as a result of LTE can be utilized in networks used by using the emergency services, including the Canadian Forces, all through emergencies. The branch of national Defence refused to touch upon this.
however Mark Tauschek, lead analyst for information-Tech analysis neighborhood, questions RIM’s declare. It does not remember who operates an LTE community, Tauschek said. The fine and reliability of public wireless networks in Canada don't seem to be going to be modified if a special company owns the underlying patents.
during his testimony, Lazaridis known as on business Canada to initiate a four-method discussion between the govt, Nortel, Ericsson and RIM.
Marc Garneau, a Liberal MP, retired naval engineering officer and former astronaut, supported this request.
“before enabling Nortel’s belongings to leave the country, they want this assessment to ensure the proposed sale is of ‘web improvement’ to Canada,” Garneau wrote in a letter to the govt. Garneau interestingly neglected the testimony stating the LTE belongings will stay with Nortel and be licensed, on a non-exclusive foundation, to Ericsson. Ericsson is getting the CDMA belongings, in an effort to stay in Canada at its existing facility in Ottawa.
what number of jobs would research in movement have kept?
Lazaridis dodged this question all through testimony earlier than the condo of Commons Standing Committee on business, Science and technology.
Bloc Quebecois MP Robert Bouchard, not like the Liberal and NDP participants, turned into no longer taken in by way of RIM’s spin doctoring. Bouchard requested Lazaridis twice to provide details on the personnel.
“we might have continued to grow the investment that Nortel has pioneered,” Lazaridis spoke of, devoid of offering numbers. “There are brilliant personnel.”
Lazaridis mentioned RIM became committed to carrying on with to function Nortel’s CDMA company, but did not have “an opportunity to definitely be mindful the transaction or the particulars” because RIM would have needed to sign a non-disclosure agreement.
by contrast, Ericsson officials promised the business, which already has 1,900 employees in Canada, would employ 800 greater because of the acquisition. About 400 of those would work on long run Evolution, Ericsson Canada president Mark Henderson testified earlier than the committee.
“it's going to function mostly as a separate enterprise” in Ericsson and be “headed by its existing management,” he said, including Ericsson would maintain Richard Lowe, Nortel’s president of provider networks.
all the way through his testimony, Lowe said Ericsson is “committed” to maintaining 2,500 Nortel jobs as part of the transaction, that means about 1,700 American Nortel personnel would preserve their jobs.
Nortel would keep the LTE patents, opposite to claims by means of RIM and Garneau that Nortel’s belongings would “leave the country.”
Will Nortel live on in any case of this? in that case, the place will the profits go?
These questions have been posed by way of Anthony Rota, Liberal MP for Nipissing-Timiskaming, Riedel spoke of Nortel wants to promote its “fundamental businesses” however will hold its LTE patents if the Ericsson deal is closed.
As of Aug. 7, “no technique has been put forward to deal with” the LTE patents however Nortel plans to put up a plan to the chapter courts for approval, Riedel testified.
both approach, the Nortel they knew — which employed 100,000 individuals in 2000 and had US$28 billion in revenues — can be long gone continually.
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