Avaya Nortel, Nortel Avaya. Which one is it ? And what happens to your old Nortel equipment ?

by Jeff Wiener on December 31, 2009

Nortel-Avaya logoAvaya Nortel, Nortel Avaya. Which one is it ? And what happens to your old Nortel equipment ?

What happened you’re wondering ?

You had a perfectly good Nortel system and all of a sudden you find out that Nortel is gone.

You’re an investor and can’t find your Nortel stock listed on the stock exchange ?

All excellent questions, and as both an investor, Telecom Blog writer, and President of a company that at one time actively sold Nortel hardware (Digitcom.ca) I myself often wondered the same thing.

Financial Mess:
It’s the stock question that really frustrates me ! I lost a significant amount of dollars in Nortel stock figuring that the company would rebound.

How could Nortel go bankrupt I thought ? Impossible. Canada’s largest Telecom company. Canada’s largest company. Number ONE worldwide market share ! Nortel’s stock made up over 25% of the Toronto Stock Exchange’s index. So, I hung on and watched the stock tumble from 120, 80, 50, 10, 5, 1 … you get the point. To add insult to injury when I called my stock broker to sell the stock in late 2008 he wanted a $60 commission. On a stock whose total value was worth less then $5 !

Nortel’s mess started many years ago, really after the 2001 DOT COM boom / bust cycle. The company never recovered following the crash in 2001 and subsequent management and financial scandals followed by product issues resulted in their ultimate bankruptcy.

And now you’re wondering, you’ve still got Nortel stock. What do you do with it ?

You can use it as scrap paper.

So what happened and how did it come to this ?
I started this blog in June 2009 in the middle of Nortel’s bankruptcy mess, so I have reported a very clear trial of posts from June 2009 to December 2009 when the Enterprise division was ultimately sold to Avaya. I will continue writing posts on Nortel until the end so stay tuned. A little further down this post you will find a list of articles related to their bankruptcy and dissolution.

Equipment:
In the mean time, you have Nortel equipment. What do you do ?

Well, the good news is that most of their assets were transferred to multiple manufacturers who have continued the product lines (Ericsson, Ciena, RAD, Avaya) under their own brands and continue to provide support to the former Nortel customers.

The other good news is that many of Nortel’s competitors are offering some VERY significant and attractive discounts to trade-in your old Nortel hardware.

I know Cisco had a program called Northern Exposure and they were offering a 65% discount (which ended in the Fall 2009) to displace Nortel hardware. NEC, Mitel, Toshiba, and Avaya all had and some still have some very aggressive trade-in programs.

Avaya had a very aggressive promotion which started in the fall of 2008 to displace Nortel hardware. They ultimately purchased Nortel’s Enterprise assets and have assured the market that they will continue to offer a clear migration plan for former Nortel customers. They will announce the plan on January 19th 2010, and in the mean time, now’s a great time to push your phone system vendor for discounts and migration credits if you are still running a Nortel system.

The following is a list of posts which chronicles the history of Nortel’s demise starting in June 2009:

July 2009
June 29th, 2009: Nortel’s Mess – Why would anybody want this ?

July 14th, 2009: If the vultures had a meal, would they feast on Nortel ?

July 20th, 2009: Avaya to Buy Nortel’s Enterprise Business: A Sad Day for Canada

July 21st, 2009: Nortel, Avaya, Siemens, RIM, Matlin Patterson: Things Are Heating Up

July 25th, 2009: The dismantling of a Telecom Giant – Poof – Ericsson takes a slice out of Nortel

July 29th, 2009: The Nortel fiasco continues – what took so long for the Cdn. Government to wake up ?

August 2009
August 6th, 2009: The Gloves Come Off – Nortel / Ericsson VS The Cdn Govt

August 20th, 2009: Avaya-Nortel Merger: Why It’s Likely to Succeed

August 28th, 2009: Nortel’s Enterprise acquisition by Avaya is being investigated by the US Dept of Justice. Canadian Jeff Wiener writes to DOJ with reasons to back the deal

September 2009
Sept. 14th, 2009: Avaya wins Nortel’s Enterprise business for $900 Million

Sept. 17th, 2009: Time is not on Nortel’s side: An appeal to the US, EU, and Cdn Govt’s to expedite the process

October 2009
October 9th, 2009: Appaling. Zafirovski is disgracing the remnants of Nortel

November 2009
November 3rd, 2009: Nortel – It ain’t over till it’s over !

November 5th, 2009: Does Nortel have another stalking horse in Nokia Siemens?

November 12th, 2009: Avaya’s Proposed Acquisition of Nortel Enterprise Solutions Receives HSR Act and Canadian Competition Act Clearance

November 24th, 2009: Stalking horse Ciena wins Nortel MEN auction

November 26th, 2009: Ericsson gets Nortel GSM assets for a song

December 2009
December 3rd, 2009: Nortel execs have to cope with massive bonus payout!

December 11th, 2009: Will Nortel bring down Ciena?

December 19th, 2009: It’s official. Avaya has taken over Nortel’s Enterprise Business. Now the fun part begins

December 23rd, 2009: Things are heating up in the Nortel CVAS sale. Somebody stop the sale !

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