Should I Stay or Should I Go?

In light of Mike Z.'s contention that Nortel needs at least 20% share to be viable in each market in which its participates, National Bank Financial analyst Tom Astle has issued an intriguing research report looking at some of Nortel's major units to determine what should be turfed, what should be fixed, and what should be fixed through a partnership. The leading candidate to go, Astle contends, is Nortel's carrier data business where it has no router and less than 10% market share. He also suggests the company sell its small and medium size business unit, which could fetch a good price from multiple bidders. Among the leading candidates to "exit or partner" are Nortel's large enterprise data and GSM businesses, while UMTS operation falls into the "fix or partner" category. Astle's report can be found here (National Bank Financial asked for the report to be removed). Note: This post has been updated to correct some earlier mistakes/inaccuracies.

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7 Responses to “Should I Stay or Should I Go?”

  1. Anonymous Says:

    GSM and UMTS? So what happens to the Cingular deal mentioned in the entry below? I wonder if Cingular read Astle’s report …

  2. nortel Says:

    my mistake on the GSM and UMTS businesses. Astle believes they fall into the “fix or partner” list. that’s what you get for posting late at night. my apologies.

  3. Me Says:

    Is this report publicly available? If so, is there a URL for it?

  4. Just a correction Says:

    Actually he’s got GSM as EXIT OR PARTNER and UMTS as FIX OR PARTNER, so he is treating them as separate businesses. Whether they are separate or not is another question.

  5. nortel Says:

    yes, that’s right. i’ve fixed it. thanks!

  6. Just Curious Says:

    Where can we get a copy of this report?

  7. nortel Says:

    yes, it’s posted now – it’s a PDF.

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