VoIP 1, 2, 3: Analyst Reaction

Orion Securities analyst Duncan Stewart has picked up on the news report that Nortel has a new channel program in place to make it easier for existing and potential customers to migrate to VoIP from legacy telephony systems. Stewart is pleased Nortel has recognized a problem that encouraged channel partners to “rip and replace” Nortel gear with Cisco’s, but he said it is a “bit horrifying that this was not fixed sooner”. Here’s an excerpt from his research report:

“You have to understand the telecom history in this space: for 15 years (at least) voice+packets EQUALLED Nortel. It should have been mopping the floor with its competitors in this space, and although Nortel has done OK, everybody has known it has been losing what ought to have been the company’s proper market share. Nobody was sure why – maybe its technology was not good enough?”

Stewart rates Nortel as an “overweight (speculative)” with a 12-month target price of US$3.60.

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2 Responses to “VoIP 1, 2, 3: Analyst Reaction”

  1. Anonymous Says:

    As a customer, there have been previous programs…but this one is more straight forward and easier for customers to budget an migration strategy

  2. Ross Says:

    As a Canadian, and one that was previously involved with Nortel, I hope that they regain the advantage that they once held. I have recently supplied technology to Nortel as well as their leading competitors, and I can honestly say that despite the many loses, they still have some of the brightest, and most innovative engineers in the industry.

    It is unfortunate that the business leaders have largely failed them. The latest crop of GE reared leaders have yet to demonstrate the kind of capabilities that everyone is expecting, but given the still strong stable of technical leadership that still exists within the company it will not be a very strong endorsement of Jack Welch and his disciples if they fail.

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