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Nortel Buy of Bay Networks Started Fall, Says One Exec

Was the $9 billion acquisition of Bay Networks the beginning of the fall for Nortel Networks? That’s the contention of TeleDynamic Communications president Randy Kremlacek.

In a blog posted Thursday, Kremlacek says the Bay buy was “terribly overpriced” and marked a turning point for the bankrupt giant in the late 1990s. And, he writes, “They couldn’t decide if they were a voice company or a data company. Whether they wanted to concentrate on what they did best or be all things to all people.”

Kremlacek goes on to say that Nortel’s dire financial problems were exacerbated by the dot-com crash and the company was never able to bounce back.

Nortel is looking to sell itself piece by piece. Companies like Siemens and Avaya are in the bidding war for those chunks. Kremlacek believes the Nortel name will soon disappear, and if the company makes any waves at all in the future, they’ll just be ripples, especially compared to their once-huge status in telecommunications.

TeleDynamic Communications is headquartered in the San Francisco Bay Area. The company provides PBX systems, VOIP, hosted PBX and Unified Communications solutions.


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