Summary
Nortel's existing footprint in packet core is minimal, especially in the mobile market. Most of the value is in the intellectual property and not much in the customer base.
Analysis
Nortel has a very minimal footprint in the packet core globally. Their abandoned the CDMA market when they partner with Starent Networks and resold that product in Verizon and Sprint. Starent has renegotiated these contracts and is going direct.
On the GSM side, they started with their Shasta platform and abandoned that as well when they could not make up their minds as what their go-to-market strategy was going to be. They also introduced Starent product in that market (specifically Vodafone) and they moved on.
For LTE, they started another organic program and developed some key intellectual properties and trial quality product for the evolved packet core, but again, that product has no footprint and just some post alpha quality product.
The most suitable candidates for these assets will be the Japanese vendors such as Fujitsu and Hitachi that have no significant capabilities in this segment and may want a jump start for their program.
Overall, it should not bring in too much cash to Nortel or value to the recipients.
This author consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
