Category Archives: Nortel News

Apple, EMC, Ericsson, Microsoft, RIM and Sony now Own Nortel’s remaining pattents

Nortel Networks Corporation [OTC: NRTLQ] announced that it,its subsidiary Nortel Networks Limited (NNL), and certain of its other subsidiaries, including Nortel Networks Inc. and Nortel Networks UK Limited (in administration), have completed the sale of all of Nortel’s remaining patents and patent applications to a consortium consisting of Apple, EMC, Ericsson, Microsoft, Research In Motion and Sony, for a cash purchase price of US$4.5 billion.

As previously announced, the sale includes more than 6,000 patents and patent applications spanning wireless, wireless 4G, data networking, optical, voice, internet, service provider, semiconductors and other patents. The extensive patent portfolio touches nearly every aspect of telecommunications and additional markets as well, including Internet search and social networking.

As previously announced, Nortel does not expect that the Company’s common shareholders or the NNL preferred shareholders will receive any value from Nortel’s creditor protection proceedings and expects that the proceedings will result in the cancellation of these equity interests.

Nortel Mediation Sessions Failed…

Nortel Networks Corporation announced that the mediation process that had been commenced in respect of the allocation of sale proceeds of Nortel’s various business and asset divestitures and other inter-estate matters, including inter-company claims, has ended without resolution of the matters in dispute. As previously announced, the Nortel entities that are in creditor protection proceedings in Canada, the United States, and Europe, the Middle East and Africa, as well as the Canadian Monitor, the U.S. Principal Officer, the U.S. Official Unsecured Creditors’ Committee, the Ad Hoc Bondholders Group and certain other interested parties, had entered into a confidential, non-binding mediation in an attempt to reach a consensual settlement of all material outstanding inter-estate matters. Mediation sessions were first held in November 2010 and again from April 11 to April 13, 2011.

In light of the unsuccessful conclusion of the mediation process, delays in the ultimate resolution of allocation and inter-company claims matters potentially could be significant. Such delays would result in a corresponding significant delay in the timing of distributions to holders of validated claims of the various estates.

Google LTE or Self Defence? Google offering $900m for Nortel’s Patent Portfolio

Google has offered $900m for Nortel’s patent portfolio. Google claims it does so to protect it’s own patent claims and their Android strategy sure has a play in this. Nortel finds Google’s offer high enough, but there is still time for other parties to bid higher, though we find that not too likely. According to the NY Times the portfolio holds over 6000 patents.

Is Google just protecting their patents or are they trying to get a piece of the LTE market to at one day become a mobile operator? Please share your views below.

Nortel to Sell the Assets of the GDNT Joint Venture

Nortel Networks Corporation announced that Guangdong Nortel Telecommunication Equipment (“GDNT”), a Chinese joint venture between Nortel Networks Limited, Nortel China Limited and certain third parties, has entered into an asset sale agreement with Ericsson (China) Communications Company Ltd. (“Ericsson”) for the sale of substantially all of the assets of GDNT for a purchase price of approximately U.S. $50 million in cash, subject to certain purchase price adjustments. Nortel subsidiaries Nortel Networks Limited and Nortel China Limited together own 62 percent of GDNT.

Nortel will work diligently with Ericsson and the other shareholders of GDNT to close the sale in the first quarter of 2011. The agreement is subject to regulatory approval and other conditions.

All of the GDNT employees will be offered employment with Ericsson.

“This sale is a milestone in that it is the last of Nortel’s significant business divestitures, which sales have preserved both Nortel

Nortel Obtains Further Extension of Stay Period Under CCAA

Nortel Networks Corporation [OTC: NRTLQ] announced that it, its principal operating subsidiary Nortel Networks Limited and its other Canadian subsidiaries that filed for creditor protection under the Companies’ Creditors Arrangement Act (CCAA) have obtained an order from the Ontario Superior Court of Justice (Canadian Court) further extending, to February 28, 2011, the stay of proceedings that was previously granted by the Canadian Court. The purpose of the stay of proceedings is to provide stability to the Nortel companies to continue with their divestiture and other restructuring efforts.

Ericsson Acquirers Nortel’s Multi Service Switch Business

Nortel Networks Corporation announced that it, its principal operating subsidiary Nortel Networks Limited (NNL), and certain of its other subsidiaries, including Nortel Networks Inc. and Nortel Networks UK Limited (in administration), have concluded a successful auction of substantially all of the assets of Nortel’s Multi Service Switch businesses globally. Telefonaktiebolaget LM Ericsson (“Ericsson”) has emerged as the winning bidder with a purchase price of US$65 million.

Under the terms of the agreements, Ericsson’s purchase includes substantially all assets of the MSS business globally including the associated Data Packet Network (DPN) and Services Edge Router (Shasta) product groups. These agreements also include substantially all customer contracts and certain intellectual property related to the MSS business.

The sale is subject to relevant court and regulatory approvals, including Canadian and U.S. court approvals. Nortel will work diligently with Ericsson to close the sale expeditiously, subject to the timing of regulatory required approvals.

Substantially all MSS employees will have the opportunity to continue their employment with Ericsson, including those in certain EMEA jurisdictions who will transfer to Ericsson by operation of law. The sale is also subject to certain regulatory approvals, information and consultation with employee representatives and/or employees in certain EMEA jurisdictions, other customary closing conditions and certain post-closing purchase price adjustments.

Commenting on the announcement, John Luszczek, General Manager of Nortel’s MSS business said: “Today

Nortel Obtains Further Extension of Stay Period Under CCAA

Nortel* Networks Corporation [OTC: NRTLQ] announced that it, its principal operating subsidiary Nortel Networks Limited and its other Canadian subsidiaries that filed for creditor protection under the Companies’ Creditors Arrangement Act have obtained an order from the Ontario Superior Court of Justice (“Canadian Court”) further extending, to October 29, 2010, the stay of proceedings that was previously granted by the Canadian Court. The purpose of the stay of proceedings is to provide stability to the Nortel companies to continue with their divestiture and other restructuring efforts.

Nortel CVAS Adds Real-Time Business Collaboration

Business collaboration took another step forward as Nortel* [OTC: NRTLQ] Carrier VoIP and Application Solutions’ (CVAS) added a new web-based UC collaboration application to its industry-leading Hosted IP Communications Solution. The new application enables service providers to increase subscriber productivity and generate incremental revenues by allowing users to instantly shift from conference calls to full, rich-media web collaboration when the need arises.

Unveiled today at the ITPX event ** in Las Vegas (booth #209) , the new application will allow users to quickly launch a full suite of collaboration services, such as application sharing, document presentation, interactive whiteboards, public and private chat, polling/surveying, synchronized web browsing, and desktop sharing. In addition, the solution allows multiple presenters and collaboration sessions to take place at the same time, which creates a truly unified and interactive communication experience.

“Nortel CVAS’ Hosted IP Communications solution is unlocking new modes of communication and collaboration by eliminating the need for users to work with disparate and disconnected tools and services,” said Samih Elhage, president, CVAS, Nortel. “Now when workers are speaking with each other and find that a richer collaborative environment is necessary, there is virtually zero time delay between decision to collaborate and collaboration. Our new application allows people to interact and collaborate virtually, almost as if they were in the same room. It also helps to improve business productivity and arms service providers with the means to increase subscriber loyalty and revenue potential.”

The new application incorporates Dimdim’s web conferencing platform into Nortel CVAS’ Adaptive Unified Communications Application which is a key component of Nortel CVAS’ Hosted IP Communications solution. Dimdim’s platform enables real-time, rich-media collaboration and meeting sessions. The solution serves a wide target market and runs on most popular operating systems including Mac, Windows and Linux.

“We’re delighted that Nortel CVAS is integrating our platform with its Adaptive UC application, allowing service providers to increase subscriber growth and loyalty by providing secure, collaborative and interactive communication services to end users,” said DD Ganguly, CEO of Dimdim. “Our goal is to provide our partners and customers with the most intuitive approach possible to Web conferencing. With no software to install or download and a myriad of advanced collaboration tools, Dimdim is committed to meeting the needs of all Nortel CVAS customers.”

Nortel CVAS will also demonstrate its new web-based UC collaboration application at the 2010 Cable Show ** (booth #711) taking place May 11-13 at the Los Angeles Convention Center in California.

Nortel CVAS’ Adaptive UC Application offers integrated voice, personalized audio/video conferencing bridges, web based portals, and is offered in multiple environments including Microsoft OCS, Lotus Sametime and standalone UC configurations. The solution provides enterprises with a graceful migration to UC through support of mixed legacy TDM, traditional VoIP and mobile devices. Nortel CVAS’ Adaptive UC solution has been deployed by a number of service providers across the globe and recently received TMCNet’s 2009 Unified Communications ** magazine Product of the Year Award **.