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Netstat -vat by Sean Michael Kerner (bio)

A command line view of IT



Verizon opposes Avaya's Nortel Bid. Who will buy them now?

nortel.jpg
From the 'Unsupported' files:

Verizon is now opposing the sale of Nortel's Enterprise networking assets on the grounds that it represents a national security risk to the U.S.

According to a court filing made by Verizon,"communications networks critical to the operation of the federal government, and the defense, safety, health and security of the American public are at risk."

To me this represents a really interesting turn of events. Essentially what is going on is Nortel today (even though there are in bankruptcy protection) is still supporting Verizon and its users. With a sale, the worry is that Avaya (or whoever ends up acquiring the assets - the auction is supposed to occur today) will leave some users unsupported.

Nortel has been under bankruptcy protection since the beginning of the year and has already sold off its wireless division to Ericsson. The Enterprise business is the next business unit on the auction block and to date, Avaya is the only vendor that has publicly announced their bid.

The big question that leaves me with is, isn't there still a revenue opportunity for whomever wins the Nortel business to continue to support the Verizon business?
From a pure speculation point of view, this could be an indication that somehow the technologies that Nortel is supporting for Verizon are somehow an unprofitable business. Otherwise why wouldn't a bidder support the business? As long as there is a profit margin, I'm not sure that it really should be an issue.

Then again, this could be some kind of larger strategy to get another bidder involved. Perhaps (and again this is just my own speculation), Verizon has its own supplier in mind that it want to see in place, or maybe they want to bid for the business themselves (that would be interesting..).

Bottom line, is that just like the wireless business, which encountered some opposition from RIM, it looks like the Enterprise division of Nortel isn't going to be sold without complaints.

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1 Comments

John said:

Really pretty simple, it's about the maintenance agreement business and avayas tactics with msp's.

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