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Nortels Enterprise Strategy No Sure Thing

Equipment maker Nortel, which filed for Chapter 11 bankruptcy protection on Jan. 14, seems to have pinned its hopes on the enterprise telephony market, while its carrier business struggles, noted Technology Business Research Inc.  However, the analyst firm predicted Nortel has a tough row to hoe and is at risk of becoming an also-ran in the enterprise space as well.

TBR analysts said while Nortel likely will attempt to hang on to its carrier business, it is likely to be sold. So, as the equipment company reorganizes under bankruptcy, it will turn its focus to its enterprise business.

However, this is no guarantee for success. The recession has caused many enterprise customers to reduce or put off equipment purchases, and Nortel faces stiff competition in the unified communications space where it is focusing its efforts, TBR analysts said.


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