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Nortel Admits to Enterprise Sales Pause

Another day, another barrage of not-so-good news surrounding Nortel Networks Corp. (NT).

The lowdown today is that Nortel really is seeing a slowdown in customer orders, despite the company’s seemingly endless press releases about new wins. Joel Hackney, head of Nortel’s enterprise division, told Interop attendees this week the bad economy and Nortel’s bankrupt status have created “a pause.”

However, NetworkWorld quoted Hackney as clarifying, “The sales cycles are lengthening but the loss rate is not increasing.”

Nortel continues to release new products, which observers see as a sign that the company is not letting bankruptcy get in the way of R&D.

Meanwhile, Nortel appears to be losing ground in China. According to SinoCast Daily Business, service providers, including China Telecom, have scratched Nortel off the supplier roster.

“Nortel is no longer on the telecom equipment shopping list unveiled by China Telecom,” an unnamed telecom exec in China told SinoCast.

Instead, providers are turning to Nortel rivals such as ZTE Corp. Not only are those equipment makers more financially stable than Nortel, their products are cheaper.


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