Nortel in Iraq

It took a few days but the Globe & Mail has finally picked up on Nortel’s $20-million contract to build a fiber-optic network in Iraq.

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6 Responses to “Nortel in Iraq”

  1. Apple Says:

    Mark you started a new thread with the old topic but my question _challenge remains
    How Nortel can make money on that deal?
    if not
    why Nortel signs the deal which can not be profitable?
    Is Nortel a charitable organization?

    Apple Says:

    November 26th, 2006 at 1:22 pm
    How a company can get profit from $20 mill order to install internet infrastructure for 35 cities. It is $500 000 for one city!
    or the other way
    5000 km of lines so it is like $4 for 3 feet of lines including materials, engineering, labor and gears! Don’t forget heavy duty vehicles and guards _soldiers to protect employees in the war zone!
    Nortel will lose $100 mill on that order easily. The ratio 5:1 will be much worse than BSNL deal with $1 loss on each Dollar of revenue.

  2. parrott Says:

    Love to know who’s covering the security for that lot…

  3. Not Observer Says:

    For goodness sake what a crock. Nortel doesn’t publish their P&L on a deal by deal basis. Not a single person in the general public will know what profit (if any) will be made on this specific deal (or any deal). Nortel may not even do accounting to that level so what’s the point in making your silly suggestion.

    It is amazing how much junk is said in attempts to discredit Nortel based on no actual facts.

  4. Observer Says:

    It appears to me that Nortel consitently prioritizes revenues over earnings.

    Nortel tries and maintain itself as part of the macroeconomic fabric based on yesteryear’s sentiment and image.

    Revenues are grossly misleadingly considering how they generated.

    Fireselling assets, manufacturing, headquarters, UMTS, perhaps PEC now, , is pure gravey cash coming in. This is from operations that takes time to generate non-ptofit cash. By the way, Nortel paid $448M for PEC which may be dumped for $200M. They seem to firesell for much less but pay outrageous premiums for their endless lost gambles in toil and desperation it seems.

    Their huge overheads in this death spiral are also evident by declining cash after selling so much and still losing money.

    We see what their business is. We see BT, BSNL, Sprint, Telstra, Verizon, etc., cutting products like Neptune, or losing partners like Putian, Huawei, Force 10, etc… Last large order years ago was BSNL where they unethically set the specs against compeitors to lose hundreds of millions.

    Selling SMB at lowest costs to India now is another punch line on top of posting piddley orders, and as Apple points out here couldn’t support the magnitude of work for that price.

    So many astounding punch lines with so much more to come, revisions that double estimates, results from fraud investigations, dervative action, fines, reverse splits, largest Canadian pension deficit by a company who posted the greatest Canadian loss like Enron did for the US, printing a multiple of paper than cash, fireselling while paying premiums for gambles, etc., it is endless.

    If their core business wasn’t so expensive to switch suppliers, they’d already be toast, gone. Like BMO who ripped out NT gear and replaced it with Cisco’s. Even our Canadian flagship HBC uses Cisco. Sprint Canda went with Lucent. Even Sprint wuptised them using others for Wimax.

    Things are rapidly changing in a smaller market with more compeition as others merge, we see their losses, increased liabhilities, outlook, cash, etc… like I say, it is just endless

    Perhaps they think they can not lose what they havn’t got giving it away like orders or Flex ammendments, like perhaps something will magically come of their endless lost gambles and contradicted optimisms.

    They are in trouble they can’t circumvent this time. Struggle is an understatement let alone rockys roads, tall mountains to climbs, no miracles or guarantees for the not too distant futures . =)

  5. Observer Says:

    Correction:

    “Fireselling assets, manufacturing, headquarters, UMTS, perhaps PEC now, , is pure gravey cash coming in. This is from operations that takes time to generate non-ptofit cash.”

    should read:

    Fireselling assets, manufacturing, headquarters, UMTS, perhaps even PEC , etc., is all pure gravey revenue, NOT from operations.

    (Operations takes time to generate even no-profit revenue and anyone can sell at a loss.)

    Furthermore,

    Fireselling assets to boost the presentation of performance strikes me as misleading with intent.

    A pattern that can’t be under-emphasized in this saga with their reluctance to chase past, timely resigned not abruptly departed, officers, as new /well compensated puppets fought to still keep bonuses for a year worse every time the count it. Heh, worse by the week, adding no gurantees that reduced shares portion of settlement liability. (if this doesn’t expose it in a nutshell, I dunno what does =) Oh, and there is so much more…. criminal investigations are still ongoing!

  6. Appl Says:

    # Not Observer Says:
    November 28th, 2006 at 6:15 pm

    For goodness sake what a croock. Nortel doesn’t publish their P&L on a deal by deal basis. Not a single person in the general public will know what profit (if any) will be made on this specific deal (or any deal). Nortel may not even do accounting to that level so what’s the point in making your silly suggestion.

    It is amazing how much junk is said in attempts to discredit Nortel based on no actual facts.
    ————–
    re
    we are here to speculate not to cut and paste from Nortel’s accounting books
    You don’t have to be smart to see what a loss leader Iraq deal will be.
    What about more reliable source than me?
    Heve you read the article about Iraq-NT deal?
    here it is for yoo…

    Nortel’s new challenge: Iraq’s logistical nightmares

    By CATHERINE McLEAN

    TELECOM REPORTER

    Tuesday, November 28, 2006, Page B2

    Two decades ago, Nortel Networks Corp.’s business in Iraq was flourishing. Now it’s placing a big bet on its future in the war-torn country.

    The struggling communications-equipment maker last week won a $20-million (U.S.) contract to install a 5,000-kilometre optical network across the troubled country. But that project comes with its own set of logistical nightmares that make it very different from run-of-the-mill business deals.

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