Nortel flogs switch biz to Ericsson
Swedes stump up $65m
SaaS data loss: The problem you didn’t know you had
Nortel has sold its multi-service switching business to Ericsson for $65m.
The deal, which will need approval from the bankruptcy courts, gives Ericsson most of the MMS business, along with Data Packet Network and Services Edge Router products and associated intellectual property.
Customer contracts and most staff will also transfer to the new owners.
Nortel said it would work hard to ensure a seamless transition for customers and maintain the high service the company is known for.
Ericsson paid $1.13bn for Nortel's CDMA and LTE Access business in 2009.
The company said shareholders should not expect any benefit from the deal.
Nortel slid into Chapter 11 in January 2009. The Canadian giant, which had been around over 100 years, had never really recovered from the effects of the dot com crash in the early 2000s.
Nortel's full sale statement is here. ®
COMMENTS
Nortel has sold its multi-service switching business to Ericsson for $65m.
This is less than one of their big switches in downtown Toronto.
Another page of history in the garbage.
fire sale
I wonder, if by waiting so long to get it cheap, that the MSS/Passport biz is possibly worth _less_ than what Ericsson paid; since I don't think many of Nortel's customers would have stuck around since chapter 11 started. Maybe they can mark it down on the accounts under corporate charity.
It's a long time since Bay Networks was a major player in what has become Cisco's world.
flames for obvious reasons.
Clueless
It didn't help that their mobile phone switch division was clueless to networking albeit they had purchased Bay networks. They required RIP routing because they had a gateway address and then the back-end IP. They never could explain why they built it that way and why they thought it was a great idea to require a routing protocol to interface as a device on a network. The worst part was they supported two Ethernet standards. One allowed local access (you had to be on the same subnet) and the other allowed remote access (local access no longer worked). While there were two Ethernet standards, the industry have already standardized on one. Basically Nortel was clueless in networking and never used their in-house capabilities but rather let their customers deal with it. Oh, that wonderful above product, could only handle 2 Mbps. Forget about management, the call records ate up most of that.
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