Nortel would go out of business optical telecommunications
September 18, 2008, 6:31 pm
Event, which became an occasion writing this news, actually means the end of an entire era in the optical telecommunications industry. The company Nortel, whose name for many years was a symbol of the industry, announced its decision to sell a business unit of Metro Ethernet Networks. This announcement followed the information to lower income in the third quarter of 2008, declared aim of diversifying the company`s desire to give themselves breathing space in order to further focus on 4G and related technologies. In mid-90 - x, long before the telecommunications providers have begun to give preference to the company Ciena, Nortel sold a great variety of optical equipment operators. Rapid development of industry accompanied strengthen the market position of the company, but, like many players telecommunications market, Nortel has not been able to avoid the dizziness of success, and after a series of decisions are not the most successful growth companies welfare clearly slowed down. Meanwhile, the company began to work against the objective factors - firstly, to a decline in revenue resulted massive consolidation of telecom operators, and secondly, the market went Chinese suppliers, led by Huawei, and price competition in the industry has sharply deteriorated. In any case, experts evaluate business unit of Metro Ethernet-40G as quite an interesting object to the acquisition, whose value is estimated at 1, 7 billion U. S. Despite all the problems, Nortel can offer one of the best teams, solid portfolio of products and, of course, a considerable number of new technological developments. Suffice it remains vague the question of who will become the buyer sold the business. A good candidate looks like Nokia Seimens Networks, but almost no other applicants are reviewed. Interested parties could purchase some Asian vendors, but they are few and far. In the logic of things unit optical communications would be Nortel looked excellent in the composition of Juniper Networks, but as if the latter does not seek to increase activity. Thus, for lack of obvious candidates, but one name of the purchaser Nortel optical business could well become a surprise.