View source for Nortel

{{Short description|Canadian multinational telecommunications equipment manufacturer (1895–2013)}}
{{Use mdy dates|date=April 2018}}
{{Use Canadian English|date=June 2021}}

{{Infobox company|<!-- [[Wikipedia:WikiProject Companies]] template -->
| name = Nortel Networks Corporation
| logo = Logo Nortel Networks.svg
| type = [[Public company|Public]]
| traded_as = formerly {{TSX was|NT.TO}}
| defunct = {{End date and age|2013|02|02}}
| industry = {{unbulleted list|[[Telecommunications]]|[[Networking equipment]]}}
| foundation = {{start date|1895|12|7}}<br />[[Montreal]], [[Quebec]], Canada
| fate = Bankruptcy
| location_city = [[Ottawa]], [[Ontario]]
| location_country = Canada
| parent = [[AT&T Corporation|AT&T]] / [[Bell Canada]] <br /> (1895–1956) <br /> [[Bell Canada]] (1956–1983)<ref>{{Cite web | url=http://www.beatriceco.com/bti/porticus/bell/northern_electric_history.html | title=Northern Electric- A Brief History | access-date=August 21, 2015 | archive-url=https://web.archive.org/web/20150822110913/http://www.beatriceco.com/bti/porticus/bell/northern_electric_history.html | archive-date=August 22, 2015 | url-status=dead }}</ref><br/>[[BCE Inc.]] (1983–2000)
| website = {{web archive|url=https://web.archive.org/web/20011215025843/http://www.nortel.com/index.html|title=nortel.com}}
}}

'''Nortel Networks Corporation''' ('''Nortel'''), formerly '''Northern Telecom Limited''', was a Canadian [[Multinational corporation|multinational]] [[telecommunications]] and data [[networking equipment]] manufacturer headquartered in [[Ottawa]], [[Ontario]]. It was founded in [[Montreal]], [[Quebec]] in 1895 as the Northern Electric and Manufacturing Company, or simply Northern Electric. Until an [[antitrust]] settlement in 1949, Northern Electric was owned mostly by [[Bell Canada]] and the [[Western Electric|Western Electric Company]] of the [[Bell System]], producing large volumes of telecommunications equipment based on licensed Western Electric designs.<ref>{{Cite news |date=2011-06-24 |title=Intel gets antitrust approval for Nortel asset buy |language=en |work=Reuters |url=https://www.reuters.com/article/us-intel-nortel-antitrust-idUSTRE75N39N20110624 |access-date=2023-03-12 |archive-date=March 12, 2023 |archive-url=https://web.archive.org/web/20230312031146/https://www.reuters.com/article/us-intel-nortel-antitrust-idUSTRE75N39N20110624 |url-status=live }}</ref>

At its height, Nortel accounted for more than a third of the total valuation of all companies listed on the [[Toronto Stock Exchange]] (TSX), employing 94,500 people worldwide.<ref name = "Third_of_TSX">{{cite news|last1=Hasselback|first1=Drew|last2=Tedesco|first2=Theresa|title=The fate of once-mighty Nortel's last billions lies in the hands of two men|url=http://business.financialpost.com/2014/09/27/the-fate-of-once-mighty-nortels-last-billions-lies-in-the-hands-of-two-men/|newspaper=Financial Post|publisher=National Post|access-date=November 19, 2014|date=September 27, 2014}}</ref> In 2009, Nortel filed for bankruptcy protection in Canada and the United States, triggering a 79% decline in its corporate stock price. The bankruptcy case was the [[List of corporate collapses and scandals|largest in Canadian history]] and left pensioners, shareholders, and former employees with enormous losses. By 2016, Nortel had sold billions of dollars in assets.<ref name="CBC_2016">{{cite news |title=Nortel executives continue drawing bonuses years after bankruptcy: Since 2009 bankruptcy, Nortel executives have collected $190M US in retention bonuses |url=http://www.cbc.ca/news/canada/ottawa/nortel-bankruptcy-pension-executives-bonuses-1.3792904 |publisher=CBC |access-date=October 7, 2016 |first=Julie |last=Ireton |date=October 7, 2016 |archive-date=October 7, 2016 |archive-url=https://web.archive.org/web/20161007210946/http://www.cbc.ca/news/canada/ottawa/nortel-bankruptcy-pension-executives-bonuses-1.3792904 |url-status=live }}</ref> Courts in the US and Canada approved a negotiated settlement of bankruptcy proceedings in 2017.<ref name="PR-2009Jan">{{cite press release | title = Nortel Obtains Court Orders for Creditor Protection | publisher = Nortel Networks Corporation | date = January 14, 2009 | url = http://biz.yahoo.com/iw/090114/0466136.html | access-date = January 14, 2009 }}{{Dead link|date=April 2020 |bot=InternetArchiveBot |fix-attempted=yes }}</ref><ref name="NN-PR20120727">{{cite press release | title = Nortel Obtains Further Extension of Stay Period Under CCAA | publisher = Nortel Networks | date = October 30, 2012 | url = http://www.nortel-canada.com/2012/10/nortel-obtains-further-extension-of-stay-period-under-ccaa-10/ | access-date = November 6, 2012 | archive-url = https://web.archive.org/web/20121104082643/http://www.nortel-canada.com/2012/10/nortel-obtains-further-extension-of-stay-period-under-ccaa-10/ | archive-date = November 4, 2012 | url-status = dead}}</ref>

== History ==
=== Origins ===
[[Alexander Graham Bell]] conceived the technical aspects of the telephone in July 1874, while residing with his parents at their farm in Tutela Heights, on the outskirts of [[Brantford|Brantford, Ontario]].<ref>Bruce 1990, pp.&nbsp;122–123.</ref><ref name="Patten-Bell">{{Cite book |last=Patten |first=Gulielmus |url=https://books.google.com/books?id=4KzVAAAAMAAJ |title=Pioneering the Telephone in Canada |date=1926 |publisher=Privately printed |language=en}}</ref> He later refined its design at Brantford after producing his first working prototype in Boston.<ref>{{Cite book |last=MacLeod |first=Elizabeth |url=https://books.google.com/books?id=lyRQIqrMqXQC |title=Alexander Graham Bell: An Inventive Life |date=1999-04-01 |publisher=Kids Can Press |isbn=978-1-55074-458-3 |language=en}}</ref> Canada's first telephone factory, created by James Cowherd of Brantford, was a three-storey brick building that soon started manufacturing telephones for the [[Bell System]], leading to the city's style as ''The Telephone City''.<ref>{{Cite web |last=Sharpe |first=Roger |title=Soldiers and Warriors: The Early Volunteer Militia of Brant County, 1856–1866, p. 80 |url=https://images.ourontario.ca/brant/images.ourontario.ca/brant/page/ID=82662&po=82&n= |access-date=2024-07-14 |website=images.ourontario.ca |language=en }}{{Dead link|date=July 2024 |bot=InternetArchiveBot |fix-attempted=yes }}

* Field, F.A. "The First Telephone Factory", ''Blue Bell'' (magazine), [[Bell Canada|The Bell Telephone Company of Canada]], January 1931. Retrieved April 22, 2012.</ref>{{NoteTag|Alexander Graham Bell had originally asked Boston manufacturer Charles Williams to provide an initial order of 1,000 telephones for use in Canada, but Williams' small shop was only able to produce a fraction of that number. Bell then spoke with a Brantford friend, James Cowherd (1849? – Feb. 1881), who set up Canada's first telephone factory which produced 2,398 telephones to Bell's specifications by 1881. Bell sent Cowherd to Boston in 1878 to study Williams manufacturing processes for a number of months; Cowherd then returned to Brantford to produce Bell's production telephones, and help develop newer models. Among Cowherd's designs was a transmitter fitted with a triple mouthpiece allowing three people to talk, and sing, simultaneously. Cowherd's untimely early death from tuberculosis was noted in major technical journals and led to the closure of the Bell Systems' manufacturing supplier plant in Brantford. Telephone production later resumed in Montreal, eventually leading to the creation of Northern Electric, later renamed Northern Telecom and then Nortel.<ref name="B.H.S.-Reville.c">Reville 1920, p.&nbsp;322.</ref><ref>Prevey, W. Harry (ed.); Collins, Larry. [http://www.ieeeghn.org/wiki/images/2/23/Electricity_The_Magic_Medium%2C_IEEE_Canadian_Region.pdf Electricity, The Magic Medium] {{Webarchive|url=https://web.archive.org/web/20131106011650/http://www.ieeeghn.org/wiki/images/2/23/Electricity_The_Magic_Medium%2C_IEEE_Canadian_Region.pdf |date=November 6, 2013 }}, Thornhill, ON: IEEE, Canadian Region, 1985, p.&nbsp;4, {{ISBN|0-9692316-0-1}}.</ref><ref name="NortelHistory1874-1900">{{cite web
 |author       = Nortel Networks
 |title        = History of Nortel: 1874 to 1899
 |publisher    = Nortel Networks
 |year         = 2011
 |url          = http://www.nortel-canada.com/about/history/1874-to-1899/
 |access-date   = November 13, 2012
 |archive-url  = https://web.archive.org/web/20130619193948/http://www.nortel-canada.com/about/history/1874-to-1899/
 |archive-date = June 19, 2013
}}</ref>

A ''Brantford Expositor'' article later noted of the historic factory building's demise: "[Brantford] City officials and heritage committee members hung their heads in shame in 1992 when it was learned that a building that once housed the first telephone factory in the world had been approved for demolition. The embarrassing oversight came to light too late to stop wrecking crews, who were already tearing down the aged building at 32 Wharfe St... The building, where equipment for Alexander Graham Bell's first telephone was made, had even been pictured and written about in a city-printed brochure about the great inventor. A plaque erected by [the] [[Telephone Pioneers of America]] heralding the building's significance had been stripped from the structure in the mid-1980s and given to the Brant County Museum".<ref>Ibbotson, Heather. [http://www.brantfordexpositor.ca/2012/04/05/fires-have-claimed-many-historic-city-buildings City Has Lost Many Historic Buildings] {{Webarchive|url=https://web.archive.org/web/20121107010952/http://www.brantfordexpositor.ca/2012/04/05/fires-have-claimed-many-historic-city-buildings |date=November 7, 2012 }}, ''[[Brantford Expositor]]'', April 5, 2012.</ref>}}

After Cowherd's death in 1881 which resulted in the closure of his Brantford factory, a mechanical production department was created within the [[Bell Canada|Bell Telephone Company of Canada]] and production of Canadian telephone equipment was transferred to Montreal in 1882 to compensate for the restrictions on importing telephone equipment from the United States.<ref name="NortelHistory1874-1900" /><ref>{{cite book
| title = A History of Canadian Accounting Thought and Practice
| last = Murphy
| first = George Joseph
| year = 1993
| isbn = 978-0-8153-1248-2
| page = 82
| publisher = Taylor & Francis
}}</ref> In addition to telephones, four years later, the department started manufacturing switchboards, at first the 50-line Standard Magneto Switchboard.<ref name="NortelHistory1874-1900" />{{sfn|Rens|Roth|2001|p=129}} The small manufacturing department expanded yearly with the growth and popularity of the telephone to 50 employees in 1888.{{sfn|Rens|Roth|2001|p=129-132}} By 1890 it had been transformed into its own branch of operations with 200 employees, and a new factory was under construction.<ref name="NortelHistory1874-1900" />

As the manufacturing branch expanded, its production ability increased beyond the demand for telephones, and it faced closure for several months a year without manufacturing other products.{{sfn|Rens|Roth|2001|p=130}} The Bell Telephone Company of Canada's (later renamed to Bell Canada) charter prohibited the company from building other products. In 1895, Bell Telephone of Canada spun off its manufacturing arm to build telephones for sale to other companies, as well as other products, such as [[fire alarm]] boxes, [[police box|police street call boxes]], and [[firefighter|fire department call equipment]]. This company was incorporated as the Northern Electric and Manufacturing Company Limited.<ref name="NortelHistory1874-1900"/>

=== Northern Electric and Manufacturing Company ===
Northern Electric and Manufacturing Company Limited was incorporated on December 7, 1895. The initial stock capital was $50,000 at $100 per share, with 93% held by the Bell Telephone Company of Canada and the remainder held by seven corporate directors.<ref name="Sessional Papers">{{cite book
| title = Sessional Papers
| publisher = C. H. Parmelee
| year = 1896
| author = Canadian Parliament
| author-link = Parliament of Canada
| page = 34
| volume = 29
| number = 16
}}</ref> The first general stockholders meeting was held on March 24, 1896.

In December 1899, The Bell Telephone Company of Canada bought a cabling company for $500,000; a Canadian charter named it "The Wire and Cable Company".<ref>

{{cite book
| title = Telecommunications in Canada: technology, industry, and government
| last1 = Babe
| first1 = Robert E.
| publisher = University of Toronto Press
| year = 1990
| isbn = 9780802067388
| page = 177
}}</ref> Northern Electric and Manufacturing further expanded its product line in 1900, manufacturing the first Canadian wind-up [[phonograph|gramophones]] that played [[gramophone record|flat discs]].<ref name="NortelHistory1900-1919">{{cite web
 |author      = Nortel Networks
 |title       = Corporate information: Nortel History&nbsp;– 1900 to 1919
 |publisher   = Nortel Networks
 |year        = 2009
 |url         = http://www.nortel.com/corporate/corptime/1900.html
 |access-date  = April 3, 2009
 |url-status     = dead
 |archive-url  = https://web.archive.org/web/20020107115011/http://www.nortel.com/corporate/corptime/1900.html
 |archive-date = January 7, 2002
}}</ref> In 1911 the Wire and Cable Company changed its name to the "Imperial Wire and Cable Company".{{sfn|Rens|Roth|2001|p=132}}

=== Northern Electric Company ===
[[File:NE1951Logo NationalService.png|thumb|155px|left| 1950 Logo]]

The construction of a new manufacturing plant started in 1913 at Shearer Street in Montreal, Quebec, as preparations began for the two manufacturing companies' integration. Then, in January 1914, the Northern Electric and Manufacturing Company and the Imperial Wire and Cable Company merged into the Northern Electric Company, commonly known simply as Northern Electric. The new company opened the doors on a new manufacturing plant in January 1915. This facility, located on Shearer Street, was the primary manufacturing centre until the mid-1950s.<ref name="NortelHistory1900-1919"/> [[Edward Fleetford Sise]] was the president and his brother [[Paul Fleetford Sise]] was the vice-president and general manager.{{sfn|Rens|Roth|2001|pp=129–132}}
[[Image:Northern Electric Audio Amplifier.jpg|thumb|right|An audio amplifier manufactured by Northern Electric]]

During the [[First World War]], Northern Electric manufactured the [[Portable Commutator]], a one-wire telegraphic switchboard for military operations in the field.<ref>{{cite web |url=https://www.thecanadianencyclopedia.ca/en/article/nortel |title=Nortel |author=Douglas Hunter |date=January 5, 2018 |access-date=February 18, 2021 |publisher=[[The Canadian Encyclopedia]] |archive-date=February 14, 2021 |archive-url=https://web.archive.org/web/20210214224240/https://www.thecanadianencyclopedia.ca/en/article/nortel |url-status=live }}</ref><ref>{{cite web |url=https://www.microwavejournal.com/articles/17532-goliath-s-fall |title=Goliath's Fall |date=May 15, 2012 |access-date=February 18, 2021 |author=Savid Vye |publisher=Microwave Journal |archive-date=August 1, 2021 |archive-url=https://web.archive.org/web/20210801175920/https://www.microwavejournal.com/articles/17532-goliath-s-fall |url-status=live }}</ref> In 1922, Northern started to produce, for $5, the "Peanut" vacuum tube, which required only a single dry-cell battery. The use of alternating current was still under development during this time. The Northern Electric Peanut tube was the smallest tube made and drew only one-tenth of an ampere.<ref>

{{cite book
| last1 = Lewis
| first1 = H. Spencer
| title = The Mystic Triangle: A Modern Magazine of Rosicrucian Philosophy
| year = 1998
| isbn = 9780766107052
| publisher = Kessinger Publishing
}}{{Verify source|date=May 2012}}

</ref> During the 1920s Northern Electric made [[kettle]]s, [[toaster]]s, [[cigar]] lighters, electric [[stove]]s, and [[washing machine]]s.<ref name="NortelHistory1920-1929"/> In January 1923, Northern Electric started to operate an AM radio station with call letters [[CHYC-AM|CHYC]], in the Shearer Street plant, and much of the programming was religious services for the Northern Electric employees and families in the community. In July 1923, CHYC-AM was the first radio station to provide entertainment to the riders of the [[Transcontinental railroad|transcontinental train]], in a parlor car fitted with a radio set to receive the broadcast as it left Montreal and traveled west.{{sfn|Rens|Roth|2001|p=197}} Later in the 1920s, Northern created the first [[Sound film|talking movie sound system]] in the [[British Empire]] for a theater in Montreal.<ref name="NortelHistory1920-1929">
{{cite web
 |author      = Nortel Networks
 |title       = Corporate information: Nortel History&nbsp;– 1920 to 1929
 |publisher   = Nortel Networks
 |year        = 2009
 |url         = http://www.nortel.com/corporate/corptime/1920.html
 |access-date  = April 3, 2009
 |url-status     = dead
 |archive-url  = https://web.archive.org/web/20081121010752/http://www.nortel.com/corporate/corptime/1920.html
 |archive-date = November 21, 2008
}}</ref>

During the [[Great Depression]] in the 1930s, Northern Electric was affected, like most other companies. From the beginning of 1930 through the end of 1933, sales dropped from $34 million to $8.2 million, with employees dropping from 6,100 to 2,400.<ref>

{{cite book
| title = 100 Years of Telephone Switching: Manual and Electromechanical Switching, 1878-1960s
| last1 = Chapuis
| first1 = Robert J.
| last2 = Joel
| first2 = Amos E.
| publisher = IOS Press
| year = 2003
| isbn = 9781586033491
| edition = 2, illustrated
| page = 282
}}</ref>

=== Independence from Western Electric ===
In 1949, an [[antitrust]] suit in the United States forced [[AT&T Corporation|AT&T]]/[[Western Electric]] to sell its stake in Northern Electric to Bell Canada. AT&T spun off Northern Electric in 1956. Deprived of its Western Electric tie, Northern began developing its own products. In 1953, Northern Electric produced its first television sets using [[Cathode-ray tube|tubes]] made by [[RCA Corporation|RCA]].<ref name="NortelHistory1950-1959">{{cite web
 |author      = Nortel Networks
 |title       = Corporate information: Nortel History&nbsp;– 1950 to 1959
 |publisher   = Nortel Networks
 |year        = 2007
 |url         = http://www.nortel.com/corporate/corptime/1950.html
 |access-date  = November 17, 2007
 |url-status     = dead
 |archive-url  = https://web.archive.org/web/20080218193405/http://www.nortel.com/corporate/corptime/1950.html
 |archive-date = February 18, 2008
}}</ref> Bell Canada acquired 100 percent of Northern Electric in 1964; through public stock offerings starting in 1973, Bell's ownership of Northern Electric and its successors would be reduced, though it continued to have majority control.<ref>{{Cite journal |last=Pinheiro |first=John |date=1987 |title=At&t Divestiture & the Telecommunications Market |url=https://www.jstor.org/stable/24122300 |journal=High Technology Law Journal |volume=2 |issue=2 |pages=303–355 |jstor=24122300 |issn=0885-2715 |access-date=May 17, 2023 |archive-date=May 17, 2023 |archive-url=https://web.archive.org/web/20230517124905/https://www.jstor.org/stable/24122300 |url-status=live }}</ref>

In 1966, the Northern Electric research lab, Northern Electric Laboratories (the predecessor to [[Bell-Northern Research]]), started looking into the possibilities of [[Optical fiber|fiber optic cable]], and in 1969, began work on digitizing telephone communications. Also in 1969, Northern began making inroads into the US market with its switching systems. In 1972, it opened its first factory in the US in [[Michigan]]. In the late 1960s and early 1970s, Northern began shipping its first [[Telephone switch#Digital switches|digital switching systems]], one of the earliest such systems to be sold.<ref>{{cite web |title=Overview & Background on Electronic & Digital Switching Systems |url=https://telephoneworld.org/telephone-switching-systems/overview-background-on-electronic-digital-switching-systems/ |website=telephoneworld.org |access-date=10 February 2021 |archive-date=April 19, 2021 |archive-url=https://web.archive.org/web/20210419181100/https://telephoneworld.org/telephone-switching-systems/overview-background-on-electronic-digital-switching-systems/ |url-status=live }}</ref>

Northern Telecom was, with Bell-Northern Research, in the early 1970s a part owner of [[MicroSystems International]], a semiconductor manufacturer based in Nepean, outside Ottawa.<ref>{{Cite web|url=https://news.google.com/newspapers?id=Xq4yAAAAIBAJ&pg=1077,2047709|title=Ottawa Citizen – Google News Archive Search|website=[[Google News]]|access-date=2019-08-20|archive-date=April 9, 2022|archive-url=https://web.archive.org/web/20220409222853/https://news.google.com/newspapers?id=Xq4yAAAAIBAJ&pg=1077,2047709|url-status=live}}</ref><ref>{{Cite book|url=https://books.google.com/books?id=g3EC4nqKcmIC&q=microsystems+international+nepean&pg=PA101|title=Perspectives on Ottawa's High-tech Sector|last1=Novakowski|first1=Nickolas|last2=Tremblay|first2=Rémy|date=2007|publisher=Peter Lang|isbn=9789052013701|language=en|access-date=November 2, 2020|archive-date=February 21, 2021|archive-url=https://web.archive.org/web/20210221015508/https://books.google.com/books?id=g3EC4nqKcmIC&q=microsystems+international+nepean&pg=PA101|url-status=live}}</ref>

=== Northern Telecom and "Digital World" ===
{{plain image with caption|Northern Telecom logo.svg|Logo used from the mid-1970s to 1995}}
<!-- Image with unknown copyright status removed: [[File:northerntelecom.png|155|left|Old Northern Telecom (Nortel) logo]] -->

In March 1976, the company name was changed to Northern Telecom Limited, and management announced its intention to concentrate the company's efforts on digital technology.<ref>{{Cite news|url=https://digitalcollections.lib.umanitoba.ca/islandora/object/uofm%3A2525887|title=Yesterday we were Northern Electric. Today we're Northern Telecom. Is this good for Canada|date=March 1, 1976|work=The Winnipeg Tribune|access-date=April 28, 2019|page=3 (advertisement)|archive-date=August 4, 2020|archive-url=https://web.archive.org/web/20200804182554/https://digitalcollections.lib.umanitoba.ca/islandora/object/uofm%3A2525887|url-status=live}}</ref> Northern Telecom was the first company in its industry to announce and deliver a complete line of fully digital telecommunications products.<ref>{{Cite web |title=Northern Electric—Nortel Networks Collection · York University Computer Museum Canada |url=https://museum.eecs.yorku.ca/collections/show/18 |access-date=2025-02-07 |website=museum.eecs.yorku.ca}}</ref> The product line was branded "Digital World" and included the [[DMS-100]], a fully digital central office switch serving as many as 100,000 lines, which was a key contributor to the company's revenue for close to 15 years.<ref>{{Cite web |title=Northern Electric- A Brief History |url=https://memorial.bellsystem.com/northern_electric_history.html |access-date=2024-06-19 |website=memorial.bellsystem.com}}</ref>

Starting in 1977, Nortel grew rapidly after the introduction of its DMS line of digital central office telephone switches, especially after the [[American Telephone & Telegraph|AT&T]] breakup in 1984. Northern Telecom became a significant supplier in Europe and China<ref>{{Cite journal|last1=van de Kaa|first1=G.|last2=Greeven|first2=M. J.|date=2017-05-01|title=Mobile telecommunication standardization in Japan, China, the United States, and Europe: a comparison of regulatory and industrial regimes|journal=Telecommunication Systems|language=en|volume=65|issue=1|pages=181–192|doi=10.1007/s11235-016-0214-y|issn=1572-9451|doi-access=free}}</ref> {{citation needed|date=May 2012}} and was the first non-Japanese supplier to [[Nippon Telegraph and Telephone]].

=== Deregulation ===
In 1983, due to deregulation, Bell Canada Enterprises (later shortened to [[Bell Canada Enterprises|BCE]]) was formed as the parent company to [[Bell Canada]] and Northern Telecom. [[Bell-Northern Research]] was jointly owned 50–50 by Bell Canada and Northern Telecom. The combined three companies were referred to as the tricorporate.<ref name="BellSystemMemorial">{{cite web
 |title        = Northern Electric&nbsp;– A Brief History
 |url          = http://www.porticus.org/bell/northern_electric_history.html
 |access-date  = September 12, 2006
 |url-status   = dead
 |archive-url  = https://web.archive.org/web/20090426214309/http://www.porticus.org/bell/northern_electric_history.html
 |archive-date = April 26, 2009
 }}</ref><ref>{{cite web
 | last = Rens
 | first = Jean-Guy
 | title = Canada and the Birth of the Digital World: The Contributions of R. Charles Terreault
 | publisher = Canada's Telecommunications Hall of Fame
 | year = 2007
 | url = http://www.telecomhall.ca/index.php?page=92
 | access-date = October 14, 2007
 | archive-url = https://web.archive.org/web/20070706193405/http://www.telecomhall.ca/index.php?page=92
 | archive-date = July 6, 2007
 | url-status = dead
 }}</ref><ref>{{Cite journal
 |last1        = Oliver
 |first1       = Richard
 |last2        = Scheffinan
 |first2       = David
 |title        = The Regulation of Vertical Relationships in the US Telecommunications Industry
 |journal      = Managerial and Decision Economics
 |volume       = 16
 |pages        = 327–348
 |year         = 1995
 |url          = http://www.richardwoliver.com/PDFs/VerticalRelationships.pdf
 |doi          = 10.1002/mde.4090160407
 |issue        = 4
 |access-date  = November 26, 2007
 |archive-url  = https://web.archive.org/web/20071128083139/http://www.richardwoliver.com/PDFs/VerticalRelationships.pdf
 |archive-date = November 28, 2007
 |url-status   = dead
 }}</ref>

As Nortel, the streamlined identity it adopted for its 100th anniversary in 1995, the company set out to dominate the burgeoning [[globalization|global market]] for [[Public Switched Telephone Network|public]] and private networks.{{citation needed|date = May 2012}}

=== Optical boom and bust  ===
[[File:Nortel technician in lab Belleville 2001.jpg|thumb|Technician working in a Nortel lab in [[Belleville, Ontario|Belleville]], 2001]]
In 1998, with the acquisition of [[Bay Networks]], the company's name was changed to Nortel Networks to emphasize its ability to provide complete solutions for multiprotocol, multiservice, global networking over the [[Internet]] and other communications networks. As a consequence of the stock transaction used to purchase Bay Networks, BCE ceased to be the majority shareholder of Nortel.{{citation needed|date = May 2012}}

In 1999, Nortel outsourced several of its manufacturing operations to North American contractors.<ref>{{Cite news|url=https://www.eetimes.com/nortel-to-sell-several-manufacturing-plants-to-cems/|title=Nortel to sell several manufacturing plants to CEMs|date=August 4, 1999|work=EE Times|access-date=May 19, 2020|archive-date=August 5, 2020|archive-url=https://web.archive.org/web/20200805091446/https://www.eetimes.com/nortel-to-sell-several-manufacturing-plants-to-cems/|url-status=live}}</ref>

In 2000, BCE [[spin-out#U.S. SEC definition|spun out]] Nortel, distributing its holdings of Nortel to its shareholders. Bell-Northern Research was gradually absorbed into Nortel, as it first acquired a majority share in BNR, and eventually acquired the entire company.{{citation needed|date = May 2012}}

In the late 1990s, stock market speculators, hoping that Nortel would reap increasingly lucrative profits from the sale of [[fibre optic network]] gear, began pushing up the company's share price to unheard-of levels despite the company's repeated failure to turn a profit.<ref>{{Cite news|url=https://www.cbc.ca/news/canada/nortel-s-icarus-like-stock-1.846948|title=Nortel's Icarus-like stock|date=January 14, 2009|work=CBC News|access-date=April 28, 2019|archive-date=November 7, 2013|archive-url=https://web.archive.org/web/20131107051026/http://www.cbc.ca/news/canada/nortel-s-icarus-like-stock-1.846948|url-status=live}}</ref> Under the leadership of [[chief executive officer]] [[John Roth (businessman)|John Roth]], sales of optical equipment had been robust in the late 1990s, but the market was soon saturated. When the speculative telecom [[Dot-com bubble|bubble of the late 1990s]] reached its pinnacle late in the year 2000, Nortel was to become one of the major casualties.{{citation needed|date = May 2012}}<ref>{{Cite web |last=Dabrowski |first=Wojtek |date=Jan 14, 2009 |title=Key dates in the history of Nortel |url=https://www.reuters.com/article/idUSTRE50D3N1/ |website=Reuters |access-date=December 11, 2023 |archive-date=December 11, 2023 |archive-url=https://web.archive.org/web/20231211073353/https://www.reuters.com/article/idUSTRE50D3N1/ |url-status=live }}</ref> Nortel's revenues would be dented by a saturated market and the failure of [[WorldCom]], which was a major customer.<ref>{{Cite news|url=https://www.itworldcanada.com/article/how-worldcom-took-nortel-down-with-it/36930|title=How WorldCom took Nortel down with it|date=June 23, 2009|access-date=May 20, 2020|archive-date=August 5, 2020|archive-url=https://web.archive.org/web/20200805080707/https://www.itworldcanada.com/article/how-worldcom-took-nortel-down-with-it/36930|url-status=live}}</ref><ref>{{Cite news|url=https://www.nytimes.com/2005/01/18/business/worldcoms-audacious-failure-and-its-toll-on-an-industry.html|title=WorldCom's Audacious Failure and Its Toll on an Industry|date=January 18, 2005|work=[[The New York Times]]|access-date=May 20, 2020|archive-date=May 13, 2020|archive-url=https://web.archive.org/web/20200513142824/https://www.nytimes.com/2005/01/18/business/worldcoms-audacious-failure-and-its-toll-on-an-industry.html|url-status=live}}</ref><ref>{{Cite news|url=https://www.cbc.ca/news/business/nortel-extends-multi-billion-dollar-contract-with-worldcom-1.251553|title=Nortel extends multi-billion dollar contract with WorldCom|date=September 20, 2001|work=CBC News|access-date=May 20, 2020|archive-date=September 2, 2020|archive-url=https://web.archive.org/web/20200902050148/https://www.cbc.ca/news/business/nortel-extends-multi-billion-dollar-contract-with-worldcom-1.251553|url-status=live}}</ref>

At its height, Nortel accounted for more than a third of the total valuation of all the companies listed on the [[Toronto Stock Exchange]] (TSX), employing 94,500 worldwide, with 25,900 in Canada alone.<ref name = "Third_of_TSX" /><ref>{{cite journal |last=Wahl |first=Andrew |title=The good, the bad and the ugly: Nortel Networks |url=http://ca.finance.yahoo.com/personal-finance/article/canadianbusiness/1037/the-good-the-bad-and-the-ugly-nortel-networks |date=March 24, 2009 |journal=Canadian Business |access-date=July 28, 2009 |url-status=dead |archive-url=https://web.archive.org/web/20090330143912/http://ca.finance.yahoo.com/personal-finance/article/canadianbusiness/1037/the-good-the-bad-and-the-ugly-nortel-networks |archive-date=March 30, 2009 }}</ref> Nortel's market capitalization fell from [[Canadian dollar|C$]]398 billion in September 2000 to less than C$5 billion in August 2002, as Nortel's stock price plunged from C$124 to C$0.47. When Nortel's [[stock market crash|stock crashed]], it took with it a wide swath of Canadian investors and [[pension fund]]s and left 60,000 Nortel employees unemployed. Roth was criticized after it was revealed that he cashed in his own [[stock option]]s for a personal gain of C$135 million in 2000 alone.<ref>{{cite news |url=https://secure.globeadvisor.com/servlet/ArticleNews/story/gam/20050112/RNORTBOARD12 |title=New board 'is an improvement by a mile' |work=Globe and Advisor |date=January 12, 2005 |access-date=March 12, 2011 |archive-date=May 27, 2011 |archive-url=https://web.archive.org/web/20110527044259/https://secure.globeadvisor.com/servlet/ArticleNews/story/gam/20050112/RNORTBOARD12 |url-status=live }}</ref>

Roth retired in 2001. His planned successor, [[chief operating officer]] Clarence Chandran, already on sick leave due to complications following his 1997 stabbing in Singapore,<ref name="CBC-Chandran-medicalleave">{{cite news
 | work = CBC News
 | publisher = [[Canadian Broadcasting Corporation]]
 | title = Nortel COO takes medical leave
 | date = March 13, 2001
 | url = https://www.cbc.ca/news/canada/nortel-coo-takes-medical-leave-1.267331
 | access-date = December 15, 2011
 | archive-date = March 2, 2012
 | archive-url = https://web.archive.org/web/20120302180030/http://www.cbc.ca/news/story/2001/03/13/ott_nortelleave010313.html
 | url-status = live
 }}</ref> decided to quit, however.<ref name="LATimes-Chandran-quit">{{cite news
 | last = Karleff
 | first = Ian
 | title = Search for New CEO Launched by Nortel
 | newspaper = Los Angeles Times
 | date = May 21, 2001
 | url = https://www.latimes.com/archives/la-xpm-2001-may-12-fi-62550-story.html
 | access-date = December 15, 2011
 | archive-date = June 18, 2012
 | archive-url = https://web.archive.org/web/20120618082616/http://articles.latimes.com/2001/may/12/business/fi-62550
 | url-status = live
 }}</ref> [[Chief financial officer]] [[Frank Dunn]] was eventually chosen as Roth's permanent replacement.<ref>{{Cite web |date=6 October 2001 |title=Hires And Fires: Oct. 1–5, 2001 |url=https://www.forbes.com/2001/10/06/1006hires.html?sh=b1b5163399a5 |access-date=31 January 2024 |website=Forbes |archive-date=January 31, 2024 |archive-url=https://web.archive.org/web/20240131170733/https://www.forbes.com/2001/10/06/1006hires.html?sh=b1b5163399a5 |url-status=live }}</ref>

=== After the Internet bubble ===

==== Accounting restatements ====

Frank Dunn presided over a dramatic restructuring of Nortel, which included laying off two-thirds of its workforce (60,000 staff)<ref>{{Cite news |date=2007-03-13 |title=How Dunn's misplaced optimism snowballed |url=https://www.theglobeandmail.com/report-on-business/how-dunns-misplaced-optimism-snowballed/article1357908/ |access-date=2024-01-31 |work=The Globe and Mail |language=en-CA |archive-date=January 31, 2024 |archive-url=https://web.archive.org/web/20240131165438/https://www.theglobeandmail.com/report-on-business/how-dunns-misplaced-optimism-snowballed/article1357908/ |url-status=live }}</ref> and [[Write-off#Write-down|writedowns]] of nearly US$16 billion in 2001 alone. This had some initial perceived success in turning the company around, with an unexpected return to profitability reported in the first quarter of 2003. The black ink triggered a total of $70 million in bonuses to the top 43 managers,<ref>{{cite news | url=https://www.theglobeandmail.com/report-on-business/no-business-reason-to-release-nortel-reserves-court-told/article2309645/ | location=Toronto | work=The Globe and Mail | first=Janet | last=McFarland | title=No business reason to release Nortel reserves, court told | date=January 20, 2012 | access-date=August 22, 2017 | archive-date=March 4, 2016 | archive-url=https://web.archive.org/web/20160304210618/http://www.theglobeandmail.com/report-on-business/no-business-reason-to-release-nortel-reserves-court-told/article2309645/ | url-status=live }}</ref> with $7.8 million going to Dunn alone,<ref>{{cite news | url=https://www.thestar.com/article/1117383--nortel-trial-letters-show-nortel-execs-knew-they-were-getting-bonuses-fraudulently-crown-alleges | location=Toronto | work=The Star | first=Michael | last=Lewis | title=Nortel trial: Letters show Nortel execs knew they were getting bonuses fraudulently, Crown alleges | date=January 18, 2012 | access-date=September 6, 2017 | archive-date=November 9, 2012 | archive-url=https://web.archive.org/web/20121109035253/http://www.thestar.com/article/1117383--nortel-trial-letters-show-nortel-execs-knew-they-were-getting-bonuses-fraudulently-crown-alleges | url-status=live }}</ref> $3 million to chief financial officer Douglas Beatty, and $2 million to controller Michael Gollogly.<ref>{{cite news |url=https://www.ctvnews.ca/nortel-execs-were-getting-bonuses-fraudulently-crown-1.755569 |title=Nortel execs were getting bonuses fraudulently: Crown {{pipe}} |work=CTV News |date=January 18, 2012 |access-date=May 26, 2012 |archive-date=March 8, 2012 |archive-url=https://web.archive.org/web/20120308084047/http://www.ctv.ca/CTVNews/Canada/20120118/nortel-exec-fraud-trial-120118/#ixzz1jrHQEEzQ |url-status=dead }}</ref> Independent auditor [[Deloitte & Touche]] advised audit committee chairman [[John Cleghorn]] and board chairman [[Lynton Wilson|"Red" Wilson]] to look into the suspicious results, who hired the law firm WilmerHale to vet the financial statements.<ref name="Nortel Nailed Coffin">{{cite web|title=Accounting scandal another nail in Nortel coffin|url=http://www.financialpost.com/story.html?id=2173704|access-date=July 7, 2014|url-status=dead|archive-url=https://web.archive.org/web/20100222095656/http://www.financialpost.com/story.html?id=2173704|archive-date=February 22, 2010}}</ref> In late October 2003, Nortel announced that it intended to restate approximately $900 million of liabilities carried on its balance sheet as of June 30, 2003, following a comprehensive internal review of these liabilities. The company stated that the restatement's principal effects would be a reduction in previously reported net losses for 2000, 2001, and 2002 and an increase in shareholders' equity and net assets previously reported on its balance sheet. A dozen of the company's most senior executives returned $8.6 million of bonuses they were paid based on the erroneous accounting. Investigators ultimately found about $3 billion in revenue had been booked improperly in 1998, 1999, and 2000. More than $2 billion was moved into later years, about $750 million was pushed forward beyond 2003 and about $250 million was wiped away completely. The accounting scandal hurt both Nortel's reputation and finances, as Nortel spent an estimated US$400 million on outside auditors and management consultants to retrain staff.<ref name="Nortel Nailed Coffin"/>

To improve its liquidity, in 2003 Nortel arranged a US$750 million credit support facility with [[Export Development Canada]].<ref name="2003-EDC">{{Cite press release | title = Nortel Networks Announces US$750 Million Support Facility with EDC and Details of Special Matters to be Considered at Upcoming Shareholders Meeting | publisher = Nortel Networks Corporation | date = February 14, 2003 | url = http://www.nortel.com/corporate/news/newsreleases/2003a/02_14_03_edc_credit_facility.html | access-date = December 9, 2009 | url-status = dead | archive-url = https://web.archive.org/web/20061228171135/http://www.nortel.com/corporate/news/newsreleases/2003a/02_14_03_edc_credit_facility.html | archive-date = December 28, 2006 }}</ref> Walter Robinson of the [[Canadian Taxpayers Federation]] denounced the line of credit, calling it "[[corporate welfare]] at its worst."<ref name="SunMedia-EDC2003">{{Cite news | last = McKibbon | first = Sean | title = Bailout Billion; Taxpayers to prop up mega-loser Nortel | newspaper = Winnipeg Sun | location = Winnipeg | page = 8 | publisher = Sun Media | date = February 16, 2003 }}</ref>

On April 28, 2004 amidst the accounting scandal, three of Nortel's top lieutenants—Douglas Beatty, CEO Frank Dunn and Michael Gollogly—were fired for [[financial mismanagement]].<ref name="reuters_2013">{{citation |url=http://ca.reuters.com/article/businessNews/idCABRE90E13720130115?pageNumber=2&virtualBrandChannel=0&sp=true |publisher=Reuters |date=January 15, 2013 |access-date=October 7, 2016 |title=Analysis: Nortel case spotlights Canada corporate crime record |first=Cameron |last=French |location=Toronto, Ontario |archive-url=https://web.archive.org/web/20161009000139/http://ca.reuters.com/article/businessNews/idCABRE90E13720130115?pageNumber=2&virtualBrandChannel=0&sp=true |archive-date=October 9, 2016 |url-status=dead }}</ref> They were later charged with fraud by the [[Royal Canadian Mounted Police|RCMP]].<ref name="NYT-ExecsArrested">{{cite news | last = Austen | first = Ian | title = 3 Ex-Nortel Executives Are Accused of Fraud | work = The New York Times | date = June 20, 2008 | url = https://www.nytimes.com/2008/06/20/technology/20nortel.html | access-date = June 25, 2008 | archive-date = September 24, 2015 | archive-url = https://web.archive.org/web/20150924044814/http://www.nytimes.com/2008/06/20/technology/20nortel.html | url-status = live }}</ref><ref name="Citizen-20080620">{{cite news | work = Ottawa Citizen | title = Top former Nortel execs charged with fraud | publisher = CanWest MediaWorks Publications | date = June 20, 2008 | url = http://www.canada.com/ottawacitizen/news/story.html?id=c0d441c3-223a-4855-b3ad-09f6144727fa | archive-url = https://web.archive.org/web/20130307140914/http://www.canada.com/ottawacitizen/news/story.html?id=c0d441c3-223a-4855-b3ad-09f6144727fa | url-status = dead | archive-date = March 7, 2013 | access-date = October 7, 2011 }}</ref> The trial began on January 16, 2012,<ref name="Gazette-20111003">{{cite news | author = Postmedia News | title = Nortel criminal trial to begin Jan. 16 | work = Montreal Gazette | date = October 3, 2011 | url = https://montrealgazette.com/news/Nortel+criminal+trial+begin/5496356/story.html | access-date = October 3, 2011 | archive-url = https://web.archive.org/web/20111202181937/http://www.montrealgazette.com/news/Nortel+criminal+trial+begin/5496356/story.html | archive-date = December 2, 2011 | url-status = dead }}</ref> ending with acquittals for all three.<ref name="reuters_2013" /><ref name="Globe-DunnTrialVerdict">{{cite news | work = Globe and Mail | title = Three former Nortel executives found not guilty of fraud | date = January 14, 2013 | url = https://www.theglobeandmail.com/globe-investor/former-nortel-networks-executives-acquitted-of-fraud/article7319241/ | access-date = January 30, 2013 | location = Toronto | archive-date = January 17, 2013 | archive-url = https://web.archive.org/web/20130117153458/http://www.theglobeandmail.com/globe-investor/former-nortel-networks-executives-acquitted-of-fraud/article7319241/ | url-status = live }}</ref><ref>{{cite news | url = https://www.thestar.com/business/2013/01/11/nortel_verdict_frank_dunn_two_other_executives_not_guilty_of_fraud.html | title = Nortel verdict: Frank Dunn, two other executives not guilty of fraud | location = Toronto | newspaper = The Star | date = January 14, 2013 | access-date = November 27, 2016 | archive-date = November 28, 2016 | archive-url = https://web.archive.org/web/20161128050413/https://www.thestar.com/business/2013/01/11/nortel_verdict_frank_dunn_two_other_executives_not_guilty_of_fraud.html | url-status = live }}</ref>

The [[United States Securities and Exchange Commission]] (SEC) also filed charges against them and four vice-presidents for civil fraud.<ref name="Citizen-20080620"/> On December 19, 2014, remaining civil charges from the [[Ontario Securities Commission]] and SEC were simultaneously dropped.<ref>{{cite news|last=Bagnall|first=James|title=Nortel allegations finally fade away, with no apologies and no blame laid|url=https://ottawacitizen.com/news/national/bagnall-nortel-allegations-finally-fade-away-with-no-apologies-and-no-blame-laid|newspaper=Ottawa Citizen|access-date=January 16, 2016|date=December 31, 2014|archive-date=January 7, 2016|archive-url=https://web.archive.org/web/20160107174902/http://ottawacitizen.com/news/national/bagnall-nortel-allegations-finally-fade-away-with-no-apologies-and-no-blame-laid|url-status=live}}</ref>

==== Owens and Zafirovski ====

After Dunn's firing, retired United States Admiral [[William Owens (Admiral)|Bill Owens]]&nbsp;– at the time a member of the board of directors&nbsp;– was appointed interim CEO.<ref>{{Cite news |date=2004-04-28 |title=Nortel fires CEO Dunn |url=https://www.theglobeandmail.com/report-on-business/nortel-fires-ceo-dunn/article1136462/ |access-date=2024-01-31 |work=The Globe and Mail |language=en-CA |archive-date=January 31, 2024 |archive-url=https://web.archive.org/web/20240131165801/https://www.theglobeandmail.com/report-on-business/nortel-fires-ceo-dunn/article1136462/ |url-status=live }}</ref> Nortel Networks subsequently returned to using the Nortel name for branding purposes only (the official company name was not changed). Nortel acquired PEC Solutions, a provider of information technology and telecommunications services to various government agencies and departments, in June 2005 and renamed it [[Nortel Government Solutions]] Incorporated (NGS).<ref name="NGS">{{cite web
 | author = Nortel Government Solutions
 | title = Corporate Information: Nortel Government Solutions
 | publisher = Nortel Government Solutions
 | year = 2008
 | url = http://nortelgov.com/corporateinfo.asp
 | access-date = June 1, 2008
 | archive-url = https://web.archive.org/web/20080704173649/http://www.nortelgov.com/corporateinfo.asp
 | archive-date = July 4, 2008
 | url-status = dead
 }}</ref><ref name="N-PEC">{{cite news
 | title = Nortel to Buy PEC Solutions For $448 Million
 | newspaper = Washington Post
 | url = https://www.washingtonpost.com/wp-dyn/content/article/2005/04/26/AR2005042601432.html
 | access-date = January 11, 2012
 | date = April 27, 2005
 | first = Griff
 | last = Witte
 | archive-date = October 3, 2018
 | archive-url = https://web.archive.org/web/20181003155028/http://www.washingtonpost.com/wp-dyn/content/article/2005/04/26/AR2005042601432.html
 | url-status = live
 }}</ref> [[LG Electronics]] and Nortel formed a [[joint venture]] in August 2005, with Nortel owning 51%, to offer telecom and networking solutions in the wireline, optical, wireless and enterprise areas for South Korean and global customers.<ref>{{Cite web |title=Long-Term Potential In LG-Nortel Joint Venture |url=https://www.forbes.com/2006/06/16/nortel-networks-0616markets15.html |access-date=2024-01-31 |website=Forbes |language=en |archive-date=January 31, 2024 |archive-url=https://web.archive.org/web/20240131165801/https://www.forbes.com/2006/06/16/nortel-networks-0616markets15.html |url-status=live }}</ref>

Peter Currie, previously the Chief Financial Officer of the [[Royal Bank of Canada]], was named CFO of Nortel in 2005, having previously served as Northern Telecom's CFO in the 1990s. Gary Daichendt, the former Chief Operating Officer of [[Cisco Systems]], was hired as president and COO, and was expected to succeed Owens as CEO. Shortly afterward, Daichendt appointed ex-Cisco [[Chief Science Officer]] Gary Kunis as [[chief technology officer]]. Both Garys were concerned about the overall direction of Nortel, especially when compared to Cisco, their previous employer. Just three months later, Daichendt resigned after both his restructuring plan and his suggestion that Owens and Currie leave the company immediately were rejected by the board of directors. Kunis quit shortly thereafter.<ref>[https://nationalpost.com/related/links/story.html?id=2180163]{{dead link|date=October 2025|bot=medic}}{{cbignore|bot=medic}}</ref> At the year's end, directors Lynton "Red" Wilson and John Cleghorn retired from the board.

[[Mike S. Zafirovski]], who had served as president and CEO of [[General Electric|GE Lighting]] and then as [[Motorola]] President and COO, succeeded Owens as president and CEO on November 15, 2005.<ref name="MW-Zafirovski">{{cite press release
 |title        = Nortel Announces Mike Zafirovski as President and CEO
 |publisher    = Nortel Networks
 |date         = October 17, 2005
 |url          = http://www.ccnmatthews.com/news/releasesfr/show.jsp?action=showRelease&actionFor=562714
 |access-date   = June 1, 2008
 |archive-url  = https://web.archive.org/web/20060225094836/http://www.ccnmatthews.com/news/releasesfr/show.jsp?action=showRelease&actionFor=562714
 |archive-date = February 25, 2006
 |url-status     = usurped
}}</ref> Motorola filed a suit against Zafirovski's hiring, alleging that his new position would break the terms of the [[non-disclosure agreement]] he had signed. Nortel agreed to pay $11.5 million on his behalf to settle the lawsuit.<ref name="SUITSETTLE">{{cite web|last = McMillan|first = Robert|title = Motorola, Nortel settle Zafirovski dispute|work = infoworld.com|url = http://www.infoworld.com/article/05/10/31/HNmotorolanortel_1.html|access-date = September 5, 2006|date = October 31, 2005|archive-url = https://web.archive.org/web/20051204150616/http://www.infoworld.com/article/05/10/31/HNmotorolanortel_1.html|archive-date = December 4, 2005|url-status = dead}}</ref> Nortel also paid out US$575 million and 629 million common shares in 2006 to settle a class-action lawsuit that accused the company of misleading investors about the company's health.

Currie stepped down as Executive Vice President and CFO in early 2007.<ref>{{Cite web |last=Bale |first=Chris |date=2007-02-07 |title=Peter Currie to Step Down as CFO of Nortel |url=https://taxgrotto.etaxjobs.com/2007/02/peter-currie-to-step-down-as-cfo-of-nortel/ |access-date=2024-01-31 |website=Tax Grotto |language=en-US |archive-date=January 31, 2024 |archive-url=https://web.archive.org/web/20240131170347/https://taxgrotto.etaxjobs.com/2007/02/peter-currie-to-step-down-as-cfo-of-nortel/ |url-status=live }}</ref> In February 2007, Nortel announced its plans to reduce its workforce by 2,000 employees, and to transfer an additional 1,000 jobs to lower-cost job sites.<ref>{{Cite web |date=7 February 2007 |title=Nortel cutting another 2,900 jobs; stock jumps |url=https://www.cbc.ca/news/business/nortel-cutting-another-2-900-jobs-stock-jumps-1.636887 |access-date=31 January 2024 |website=CBC |archive-date=January 31, 2024 |archive-url=https://web.archive.org/web/20240131170344/https://www.cbc.ca/news/business/nortel-cutting-another-2-900-jobs-stock-jumps-1.636887 |url-status=live }}</ref> The Securities and Exchange Commission filed civil fraud charges against Nortel for accounting fraud from 2000 to 2003; the fraud was allegedly to close gaps between its true performance, its internal targets and Wall Street expectations. Nortel settled the case, paying $35 million, which the Commission distributed to affected shareholders, and reported periodically to the commission on remedial measures to improve its financial accounting.<ref>{{Cite web |title=SEC.gov {{!}} SEC v. Nortel Networks Corporation, et al., Civil Action No. 07-CV-8851-LAP (S.D.N.Y.) and SEC v. Frank A. Dunn, et al., Civil Action No. 07-CV-2058-LAP (S.D.N.Y.) |url=https://www.sec.gov/enforcement/information-for-harmed-investors/nortel#:~:text=On%20October%2015,%202007,%20the,the%20unrealistic%20revenue%20and%20earnings |access-date=2024-01-31 |website=www.sec.gov |archive-date=January 31, 2024 |archive-url=https://web.archive.org/web/20240131170344/https://www.sec.gov/enforcement/information-for-harmed-investors/nortel#:~:text=On%20October%2015,%202007,%20the,the%20unrealistic%20revenue%20and%20earnings |url-status=live }}</ref>

Nortel announced plans in February 2008 to eliminate 2,100 jobs, and to transfer another 1,000 jobs to lower-cost centres.<ref name="CBC-200802-jobcuts">{{cite news|work=CBC News |title=Nortel cutting 2,100 jobs |publisher=Canadian Broadcasting Corporation |date=February 27, 2008 |url=https://www.cbc.ca/news/business/nortel-cutting-2-100-jobs-1.735974 |access-date=June 1, 2008 |url-status=dead |archive-url=https://web.archive.org/web/20080606023743/https://www.cbc.ca/news/business/nortel-cutting-2-100-jobs-1.735974 |archive-date=June 6, 2008 }}</ref> As part of the reductions, Nortel shut down its Calgary campus in 2009.<ref name="CBC-200805-Calgary">{{cite news|work=CBC News |title=Nortel to close Calgary operations |publisher=Canadian Broadcasting Corporation |date=May 27, 2008 |url=https://www.cbc.ca/news/canada/calgary/nortel-to-close-calgary-operations-1.727467 |access-date=June 1, 2008 |url-status=dead |archive-url=https://web.archive.org/web/20080531001026/https://www.cbc.ca/news/canada/calgary/nortel-to-close-calgary-operations-1.727467 |archive-date=May 31, 2008 }}</ref>

During its reporting of third quarter 2008 results, Nortel announced it would restructure into three vertically-integrated business units: Enterprise, Carrier Networks, and Metro Ethernet Networks. As part of the decentralization of its organization, four executive positions were eliminated, effective January 1, 2009: Chief Marketing Officer – Lauren Flaherty; Chief Technology Officer – John Roese; Global Services President – Dietmar Wendt; and Executive Vice President Global Sales – Bill Nelson. A net reduction of 1,300 jobs was also announced.<ref name="PR-Nortel2008Q3">{{cite press release
 |title       = Nortel Reports Financial Results for the Third Quarter 2008
 |publisher   = Nortel Networks
 |date        = November 10, 2008
 |url         = http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100248517&locale=en-US
 |access-date  = November 11, 2008
 |url-status     = dead
 |archive-url  = https://web.archive.org/web/20091224082619/http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100248517&locale=en-US
 |archive-date = December 24, 2009
}}
</ref> As its stock price dropped below $1, the [[New York Stock Exchange]] notified Nortel that it would be [[Listing (finance)#Delisting|delisted]] if its common shares failed to rise above $1 per share within 6 months.<ref>{{cite news|url=http://www.bizjournals.com/triangle/stories/2008/12/08/daily53.html?ana=from_rss|title=Nortel gets delisting warning from NYSE|date=December 12, 2008|work=Triangle Business Journal|access-date=December 14, 2008|archive-date=April 16, 2012|archive-url=https://web.archive.org/web/20120416045041/http://www.bizjournals.com/triangle/stories/2008/12/08/daily53.html?ana=from_rss|url-status=live}}</ref> Rumours continued to persist of Nortel's poor financial health, amid the [[late 2000s recession]], and its bids for government funds were turned down.<ref>{{cite news |url=https://nationalpost.com/rss/story.html?id=2164470 |title=Who killed Nortel? |work=National Post |date=January 9, 2009 |access-date=August 14, 2010 }}{{dead link|date=October 2025|bot=medic}}{{cbignore|bot=medic}}</ref>

There is suspicion that industrial espionage and knockoff Asian products brought down Nortel or at least accelerated its demise. An extensive analysis by University of Ottawa professor Jonathan Calof and recollections of former Nortel executive Tim Dempsey have placed the blame mostly on strategic mistakes and poor management at the company.<ref name="nationalpost.com">{{Cite news |last=Blackwell |first=Tom |date=February 20, 2020 |title=Did Huawei bring down Nortel? Corporate espionage, theft, and the parallel rise and fall of two telecom giants |work=[[National Post]] |url=https://nationalpost.com/news/exclusive-did-huawei-bring-down-nortel-corporate-espionage-theft-and-the-parallel-rise-and-fall-of-two-telecom-giants |access-date=October 17, 2023 |archive-date=18 October 2023 |archive-url=https://web.archive.org/web/20231018113715/https://nationalpost.com/news/exclusive-did-huawei-bring-down-nortel-corporate-espionage-theft-and-the-parallel-rise-and-fall-of-two-telecom-giants |url-status=live }}</ref>

=== Liquidation ===

==== Protection from creditors ====

On January 14, 2009, Nortel filed for protection from creditors, in the United States under [[Chapter 11, Title 11, United States Code|Chapter 11 of the United States Bankruptcy Code]], in Canada under the ''[[Companies' Creditors Arrangement Act]]'', and in the United Kingdom under the [[Insolvency Act 1986]].<ref name="PR-2009Jan"/><ref name="2009-ComputerWorld">{{cite news |last         = Ricknäs |first        = Mikael |title        = Nortel files for Chapter 11 bankruptcy protection |work         = Computerworld |publisher    = International Data Group |date         = January 14, 2009 |url          = http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=9125922&source=NLT_BNA&nlid=1 |archive-url  = https://archive.today/20130102073849/http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=9125922&source=NLT_BNA&nlid=1 |url-status   = dead |archive-date = January 2, 2013 |access-date  = January 15, 2009 }}</ref><ref name="2009Jan-NetworkWorld">{{cite news | last         = Greene |first        = Tim |title        = Nortel bankruptcy filings are last-ditch effort |work         = Network World |date         = January 14, 2009 |url          = http://www.networkworld.com/news/2009/011409-nortel-bankruptcy.html?hpg1=bn |archive-url  = https://web.archive.org/web/20110615012237/http://www.networkworld.com/news/2009/011409-nortel-bankruptcy.html?hpg1=bn |url-status   = dead |archive-date = June 15, 2011 |access-date  = January 15, 2009 }}</ref> Nortel was the first major technology company to seek bankruptcy protection during the [[2008 financial crisis]].<ref>{{cite news|url=https://www.jpost.com/Business/BusinessNews/Article.aspx?id=146314 |title=Canada's Nortel to sell itself off in pieces |work=Jerusalem Post |date=June 22, 2009 |access-date=March 12, 2011 |url-status=dead |archive-url=https://web.archive.org/web/20110604174308/http://www.jpost.com/Business/BusinessNews/Article.aspx?id=146314 |archive-date=June 4, 2011 }}</ref> Nortel had an interest payment of $107 million due the next day, approximately 4.6% of its cash reserves of approximately $2.3 billion.<ref name="2009Jan-CBC">{{Cite news |date=January 14, 2009 |title=Nortel Networks files for bankruptcy protection |work=[[Canadian Broadcasting Corporation]] |url=https://www.cbc.ca/news/business/nortel-networks-files-for-bankruptcy-protection-1.803001 |access-date=November 22, 2023 |archive-date=November 22, 2023 |archive-url=https://web.archive.org/web/20231122182555/https://www.cbc.ca/news/business/nortel-networks-files-for-bankruptcy-protection-1.803001 |url-status=live }}</ref> After the announcement, the share price fell more than 79% on the Toronto Stock Exchange. Export Development Canada agreed to provide up to C$30 million in short-term financing through its existing credit support facility with Nortel. The Canadian government resisted characterizing its position on Nortel as a bailout.<ref name="Not a bailout">{{cite news
| title=Canada government pledges to help Nortel
| url=https://www.reuters.com/article/idCAN1446286920090114
| work=Reuters
| date=January 14, 2009
| first=Randall
| last=Palmer
| access-date=July 1, 2017
| archive-date=November 24, 2020
| archive-url=https://web.archive.org/web/20201124050912/https://www.reuters.com/article/idCAN1446286920090114
| url-status=live
}}</ref>

Nortel initially hoped to re-emerge from bankruptcy, implementing a retention bonus plan in an effort to retain its top executives during the restructuring period. These bonuses, totaling US$45 million, were targeted at 1,000 executive positions.<ref name="NationalPost-2009Retention">{{cite news
 |last         = Hill
 |first        = Bert
 |title        = Nortel pays big bonuses to keep execs
 |work         = National Post
 |date         = March 1, 2009
 |url          = https://nationalpost.com/story.html?id=1342517
 |archive-url  = https://archive.today/20110104162146/http://www.nationalpost.com/story.html?id=1342517
 |url-status   = dead
 |archive-date = January 4, 2011
 |access-date  = March 3, 2010
}}</ref> At the end of January 2009, Nortel announced that it would be discontinuing its [[WiMAX]] business and its agreement with [[Alvarion]].<ref name="PR-WiMAXDiscontinue">{{cite press release
 |title       = Nortel Refines Focus of Carrier Business: Ends Joint Agreement with Alvarion for Mobile WiMAX
 |publisher   = Nortel Networks
 |date        = January 29, 2009
 |url         = http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100251997&locale=en-US
 |access-date  = January 31, 2009
 |url-status     = dead
 |archive-url  = https://web.archive.org/web/20110714195211/http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100251997&locale=en-US
 |archive-date = July 14, 2011
}}
</ref><ref name="TBJ-2009Jan">{{cite news
 | last = Drew
 | first = Jeff
 | title = Nortel getting out of WiMAX
 | work = Triangle Business Journal
 | publisher = American City Business Journals
 | date = January 30, 2009
 | url = http://www.bizjournals.com/triangle/stories/2009/01/26/daily68.html?ana=from_rss
 | access-date = January 31, 2009
 | archive-date = April 16, 2012
 | archive-url = https://web.archive.org/web/20120416020937/http://www.bizjournals.com/triangle/stories/2009/01/26/daily68.html?ana=from_rss
 | url-status = live
 }}</ref> Nortel subsequently sold its Layer 4–7 application delivery business to Israeli technology firm [[Radware]] for $18 million, after Radware had initially placed a [[stalking horse bid]].<ref name="RadwareNortel">{{cite web
 | title = Radware buys Nortel product line
 | work = Globes [online]
 | date = February 22, 2009
 | url = http://www.globes.co.il/serveen/globes/docview.asp?did=1000427704&nl=1380
 | access-date = February 21, 2009
 | archive-date = March 5, 2012
 | archive-url = https://web.archive.org/web/20120305235033/http://www.globes.co.il/serveen/globes/docview.asp?did=1000427704&nl=1380
 | url-status = live
 }}</ref><ref name="RadwarePurchase">{{cite press release
 |title       = Nortel Completes Divestiture of Certain L4-7 Data Assets to Radware
 |publisher   = Nortel Networks
 |date        = March 31, 2009
 |url         = http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100252878&locale=en-US
 |access-date  = July 25, 2009
 |url-status     = dead
 |archive-url  = https://web.archive.org/web/20091224073612/http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100252878&locale=en-US
 |archive-date = December 24, 2009
}}</ref> Nortel had acquired the application switch product line in October 2000 when it purchased Alteon WebSystems.<ref name="PR-ApplicationDelivery">{{cite press release
 |title       = Nortel to Divest Layer 4–7 Data Portfolio: Enters into Asset Purchase Agreement with Radware
 |publisher   = Nortel Networks
 |date        = February 19, 2009
 |url         = http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100252878&locale=en-US
 |access-date  = February 22, 2009
 |url-status     = dead
 |archive-url  = https://web.archive.org/web/20091224073612/http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100252878&locale=en-US
 |archive-date = December 24, 2009
}}
</ref>

==== Wind-up ====
With the worsening recession and stock market decline deterring potential companies from bidding for Nortel's assets, and many of Nortel's major customers reconsidering their relationships with the restructuring company,<ref>{{cite news|url=https://nationalpost.com/related/links/story.html?id=2197179 |title=NP Story |work=National Post |access-date=August 14, 2010}}{{dead link|date=October 2025|bot=medic}}{{cbignore|bot=medic}}</ref> in June Nortel announced that it no longer planned to emerge from bankruptcy protection, and would seek buyers for all of its business units.<ref name="19JUN2009-PR">{{cite press release
 |title       = Nortel To Sell CDMA Business and LTE Assets; Company Advancing in Its Discussions With External Parties To Sell Other Businesses
 |publisher   = Nortel Networks
 |date        = June 19, 2009
 |url         = http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100257883&locale=en-US
 |access-date  = June 19, 2009
 |url-status     = dead
 |archive-url  = https://web.archive.org/web/20091224073239/http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100257883&locale=en-US
 |archive-date = December 24, 2009
}}</ref> After announcing it planned to sell off all of its assets, Nortel shares were delisted from the Toronto Stock Exchange on June 26, 2009 at a price of $0.185 per share, down from its high in 2000 when it comprised a third of the S&P/TSX composite index.<ref name="19JUN2009-PR"/><ref name="22JUN2009">{{cite news
 | title = It's official: Nortel shares are worthless
 | work = The Globe and Mail
 | date = June 22, 2009
 | url = https://www.theglobeandmail.com/report-on-business/streetwise/its-official-nortel-shares-are-worthless/article786961/
 | access-date = November 22, 2012
 | location = Toronto
 | archive-date = December 18, 2013
 | archive-url = https://web.archive.org/web/20131218212530/http://www.theglobeandmail.com/report-on-business/streetwise/its-official-nortel-shares-are-worthless/article786961/
 | url-status = live
 }}</ref><ref name="FP-Delisting">{{cite news |last1=Tedesco |first1=Theresa |first2=Jamie |last2=Sturgeon |title=Nortel: Cautionary tale of a former Canadian titan |work=Canada.com |publisher=Canwest Publishing |date=June 27, 2009 |url=http://www.canada.com/business/fp/NORTEL+Cautionary+tale+former+Canadian+titan/1739799/story.html |access-date=July 25, 2009 |url-status=dead |archive-url=https://web.archive.org/web/20121107054212/http://www.canada.com/business/fp/NORTEL%2BCautionary%2Btale%2Bformer%2BCanadian%2Btitan/1739799/story.html |archive-date=November 7, 2012 }}
</ref> Mike Zafirovski subsequently resigned in August, and Nortel's board of directors was reorganized with three members instead of nine.<ref name="PRNortel-2009Aug-restructure">{{cite press release
 | title = Nortel Announces Board of Directors, Management Team and Organizational Changes
 | publisher = Nortel Networks Corporation
 | date = August 10, 2009
 | url = http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100260088&locale=en-US
 | access-date = August 10, 2009
 | url-status = dead
 | archive-url = https://web.archive.org/web/20091224073428/http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100260088&locale=en-US
 | archive-date = December 24, 2009
 }}</ref> Nortel handed out $14.2 million in cash compensation to seven executives in 2009. Nortel also paid out $1.4 million to 10 former and current directors, and paid $140 million to lawyers, pension, human resources and financial experts helping to oversee the company's bankruptcy proceedings.<ref name="phoneplusmag.com">{{cite news |url=http://www.phoneplusmag.com/hotnews/nortel-paid-mike-zafirovski-2-3m-resigned.html |title=Bankrupt Telecom Company Doled Out $8.6M in Bonuses Last Year |work=Phone Plus Magazine |date=March 19, 2010 |access-date=March 12, 2011 |archive-url=https://web.archive.org/web/20100326134422/http://www.phoneplusmag.com/hotnews/nortel-paid-mike-zafirovski-2-3m-resigned.html |archive-date=March 26, 2010 |url-status=dead }}</ref>

[[Nokia Siemens Networks]] made a [[Stalking horse offer|stalking horse bid]] to purchase Nortel's [[Code division multiple access|CDMA]] and [[3GPP Long Term Evolution|LTE]] assets for $650 million.<ref name="19JUN2009-PR"/> By the July 21 deadline for additional bids, [[MatlinPatterson]] and [[Ericsson]] had made offers,<ref name="CDMABidders">{{cite news
 |last         = Bagnall
 |first        = James
 |title        = Moment of truth for Nortel's wireless unit
 |work         = Ottawa Citizen
 |date         = July 24, 2009
 |url          = http://www.canada.com/technology/Moment+truth+Nortel+wireless+unit/1822699/story.html
 |access-date   = July 25, 2009
 |archive-url  = https://web.archive.org/web/20090828171859/http://www.canada.com/technology/Moment+truth+Nortel+wireless+unit/1822699/story.html
 |archive-date = August 28, 2009
 |url-status     = dead
}}</ref> and Ericsson emerged as the victor in the following auction, with a purchase price of $1.13 billion.<ref name="PR-CDMASale">{{cite press release
 |title       = Nortel Selects Ericsson as Successful Bidder For CDMA Business and LTE Access Assets
 |publisher   = Nortel Networks
 |date        = July 25, 2009
 |url         = http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100259793&locale=en-US
 |access-date  = July 25, 2009
 |url-status     = dead
 |archive-url  = https://web.archive.org/web/20091224073253/http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100259793&locale=en-US
 |archive-date = December 24, 2009
}}</ref><ref name="OttawaCitizen-CDMASale">{{cite news|last=Bagnall |first=James |title=Ericsson prevails in fight for Nortel's wireless business with $1.13B bid |work=Ottawa Citizen |date=July 25, 2009 |url=https://ottawacitizen.com/business/Ericsson+wins+Nortel+wireless+business+with/1828785/story.html |access-date=July 25, 2009 }}{{dead link|date=May 2016|bot=medic}}{{cbignore|bot=medic}}</ref> [[Avaya]] won an auction for Nortel's Enterprise Solutions business, including Nortel's stake in Nortel Government Solutions and [[DiamondWare]], for $900 million,<ref name="PR-EnterpriseSale">{{cite press release
 |title       = Nortel selects Avaya as successful bidder for Enterprise Solutions Business.
 |publisher   = Nortel Networks Corporation
 |date        = September 14, 2009
 |url         = http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100261422&locale=en-US
 |url-status     = dead
 |archive-url  = https://web.archive.org/web/20121107010953/http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100261422&locale=en-US
 |archive-date = November 7, 2012
}}</ref> after having placed a stalking horse bid of $475 million.<ref name="PR-EnterpriseBid">{{cite press release
 |title       = Nortel To Sell Enterprise Solutions Business
 |publisher   = Nortel Networks Corporation
 |date        = July 20, 2009
 |url         = http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100259133&locale=en-US
 |access-date  = July 21, 2009
 |url-status     = dead
 |archive-url  = https://web.archive.org/web/20091224073412/http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100259133&locale=en-US
 |archive-date = December 24, 2009
}}</ref> In November, Nortel sold its MEN (Metro Ethernet Networks) unit to [[Ciena Corporation]] for US$530 million in cash and US$239 million in convertible notes,<ref name="PR-MENSale">{{cite press release
 |title       = Nortel Selects Ciena as Successful Bidder for Optical Networking and Carrier Ethernet Businesses
 |publisher   = Nortel Networks Corporation
 |date        = November 23, 2009
 |url         = http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100263404&locale=en-US&lcid=-1
 |access-date  = December 20, 2009
 |url-status     = dead
 |archive-url  = https://web.archive.org/web/20091224193431/http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100263404&locale=en-US&lcid=-1
 |archive-date = December 24, 2009
}}</ref><ref>{{Cite news
 | last = Musgrove
 | first = Mike
 | date = November 24, 2009
 | title = Ciena buys Nortel unit to expand footprint
 | newspaper = The Washington Post
 | series = WashTech
 | url = https://www.washingtonpost.com/wp-dyn/content/article/2009/11/23/AR2009112303889.html?wpisrc=newsletter&wpisrc=newsletter&wpisrc=newsletter
 | archive-url = https://web.archive.org/web/20121109090038/http://www.washingtonpost.com/wp-dyn/content/article/2009/11/23/AR2009112303889.html?wpisrc=newsletter&wpisrc=newsletter&wpisrc=newsletter
 | archive-date = November 9, 2012
 | access-date = November 24, 2009
 | quote = ''subtitle'': $769 million deal to triple Maryland tech firm's market share
 | url-status = dead
 }}</ref> and its [[GSM]] business at auction to [[Ericsson]] and [[Kapsch]] for US$103 million.<ref name="PR-GSMSale">{{cite press release
 |title       = Nortel Selects Ericsson and Kapsch as Successful Bidders for GSM/GSM-R Business
 |publisher   = Nortel Networks Corporation
 |date        = November 25, 2009
 |url         = http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100263526
 |access-date  = December 20, 2009
 |url-status     = dead
 |archive-url  = https://web.archive.org/web/20110714195328/http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100263526
 |archive-date = July 14, 2011
}}</ref><ref name="PR-GSMAuction">{{cite press release
 |title       = Nortel Announces Plans to Sell its GSM/GSM-R Business
 |publisher   = Nortel Networks Corporation
 |date        = September 30, 2009
 |url         = http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100262122&locale=en-US
 |access-date  = October 1, 2009
 |url-status     = dead
 |archive-url  = https://web.archive.org/web/20110714195252/http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100262122&locale=en-US
 |archive-date = July 14, 2011
}}</ref><ref>{{cite news |url=http://business2press.com/2009/10/01/nortel-to-sell-gsm-business-assets/ |title=Nortel to sell Entire GSM Business |work=Business2press |access-date=March 12, 2011 |archive-url=https://web.archive.org/web/20110518190305/http://business2press.com/2009/10/01/nortel-to-sell-gsm-business-assets/ |archive-date=May 18, 2011 |url-status=dead}}</ref><ref name="PR-GSMAuctionDelayed">{{cite press release
 |title       = Nortel Provides Update on Auction Date for the Sale of its GSM/GSM-R Business; Obtains Further Extension of Stay Period Under CCAA; and Obtains Canadian and U.S. Court Approval for Sale of Packet Core Assets
 |publisher   = Nortel Networks Corporation
 |date        = October 28, 2009
 |url         = http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100262713&locale=en-US
 |access-date  = November 14, 2009
 |url-status     = dead
 |archive-url  = https://web.archive.org/web/20091224073510/http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100262713&locale=en-US
 |archive-date = December 24, 2009
}}</ref> [[Hitachi]] purchased the Next Generation Packet Core assets.<ref>{{cite web |url=http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100263758&locale=en-US&lcid=-1 |title=Nortel Completes Sale of Assets of Next Generation Packet Core Network Components to Hitachi |publisher=Nortel Networks Corporation |date=August 10, 2009 |access-date=March 12, 2011 |url-status=dead |archive-url=https://web.archive.org/web/20110714195404/http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100263758&locale=en-US&lcid=-1 |archive-date=July 14, 2011 }}</ref> As insurance against judgments in class action lawsuits filed by former employees, John Roth filed in December 2009 for a US$1 billion indemnification from Nortel, joining the list of U.S. creditors.<ref name="2009-John-Roth">{{cite news
 | title = John Roth seeks $1B protection from lawsuits
 | work = CBC News
 | publisher = Canadian Broadcast Corporation
 | date = December 17, 2009
 | url = https://www.cbc.ca/news/canada/ottawa/former-nortel-exec-seeks-1b-protection-from-lawsuits-1.851553
 | access-date = July 3, 2011
 | archive-date = June 26, 2012
 | archive-url = https://web.archive.org/web/20120626215833/http://www.cbc.ca/news/canada/ottawa/story/2009/12/17/nortel-john-roth-lawsuits.html
 | url-status = live
 }}</ref>

In February 2010, [[Ernst & Young]], the court-appointed monitor of Nortel's Canadian bankruptcy proceedings, reported that the assets of Nortel's [[Health and Welfare Trust]] had a shortfall of $37 million in its net assets as of December 31, 2008. The trust supports pensioners' medical, dental and life insurance benefits, as well as income support for some groups such as long-term disability recipients.<ref name="OttawaCitizen-HWT">{{cite news |last=Hill |first=Bert |title=Nortel leaves $37M health-fund gap |work=Ottawa Citizen |date=February 23, 2010 |url=https://ottawacitizen.com/life/Nortel+leaves+health+fund/2600350/story.html |access-date=January 3, 2010 |url-status=dead |archive-url=https://web.archive.org/web/20100308055344/http://www.ottawacitizen.com/life/Nortel%2Bleaves%2Bhealth%2Bfund/2600350/story.html |archive-date=March 8, 2010 }}</ref> Also in February, Nortel negotiated a $57 million deal to wind up the health care and other benefits provided to former Canadian employees. Shortly afterwards, Nortel proposed spending $92.3 million on retention bonuses for 1,475 employees in its Nortel Business Services and Corporate groups, with $2.5 million in incentives going to Christopher Ricaute, president of Nortel Business Services; $27 million allocated for Canadian employees; and $55 million allocated for U.S. employees.<ref name="Citizen2010FebRetention">{{Cite news
 | last = Hill
 | first = Bert
 | title = Nortel allots $92.3M for top staff; Retention bonuses 'standard procedure' for key workers in bankruptcy proceedings
 | newspaper = Ottawa Citizen
 | page = F.1
 | date = February 12, 2010 }}</ref> The proposed plan was later extended by an additional $27 million.<ref name="Citizen2010FebRetentionExtension">{{Cite news
 | last = Hill
 | first = Bert
 | title = Retention plan gives Nortel added flexibility
 | newspaper = Ottawa Citizen
 | page = C.1
 | date = February 24, 2010 }}</ref> Claiming that the retention bonuses proposal was extraordinary, acting US trustee Roberta DeAngelis objected to the payment of $55.6 million to 866 employees.<ref name="businessweek.com">{{cite news |url=http://www.businessweek.com/news/2010-03-02/nortel-s-proposed-incentive-payments-opposed-by-u-s-trustee.html |title=Nortel's Proposed Incentive Payments Opposed by U.S. Trustee |work=Business Week |date=March 3, 2010 |access-date=March 12, 2011 |archive-date=April 9, 2010 |archive-url=https://web.archive.org/web/20100409031428/http://www.businessweek.com/news/2010-03-02/nortel-s-proposed-incentive-payments-opposed-by-u-s-trustee.html |url-status=dead }}</ref> However, court-appointed representatives for Nortel's former employees, who are creditors in the Ontario bankruptcy court, have [[Nortel Retirees and former employees Protection Canada#February 8, 2010, agreement reached with Nortel on behalf of all former employees|signed an agreement]] to not oppose any employee incentive program.

[[GENBAND]] purchased the Carrier VoIP and Application Solutions (CVAS) unit in May 2010, as Nortel accepted its stalking horse bid of $282 million, with adjustments that decreased the net sale price to about $100 million, without a formal bidding process.<ref name="PR-GenbandPurchase">{{Cite press release
 |title       = Nortel Completes Sale of Carrier VoIP and Application Solutions Business to GENBAND
 |publisher   = Nortel Networks Corporation
 |date        = May 28, 2010
 |url         = http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100267654&locale=en-US&lcid=-1
 |access-date  = October 20, 2010
 |url-status     = dead
 |archive-url  = https://web.archive.org/web/20110714195455/http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100267654&locale=en-US&lcid=-1
 |archive-date = July 14, 2011
}}</ref><ref name="PR-CVAS-bid">{{cite press release
 |title       = Nortel to Sell Carrier VoIP and Application Solutions Business
 |publisher   = Nortel Networks Corporation
 |date        = December 23, 2009
 |url         = http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100264793&locale=en-US
 |access-date  = January 5, 2010
 |url-status     = dead
 |archive-url  = https://web.archive.org/web/20100106064119/http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100264793&locale=en-US
 |archive-date = January 6, 2010
}}</ref><ref name="CVAS-bid-Genband">{{cite web
 | last = Le Maistre
 | first = Ray
 | title = Genband Bids $282M for Nortel's VoIP Unit
 | publisher = Light Reading
 | date = December 23, 2009
 | url = http://www.lightreading.com/document.asp?doc_id=186124
 | access-date = January 5, 2010
 | archive-url = https://web.archive.org/web/20100110195254/http://www.lightreading.com/document.asp?doc_id=186124
 | archive-date = January 10, 2010
 | url-status = dead
 }}</ref> Ericsson purchased Nortel's share in its joint venture with LG Electronics for US$242 million, forming [[LG-Ericsson]], in June 2010.<ref name="PR-LGPurchase">{{Cite press release
 | title = Acquisition of Nortel's stake of LG-Nortel completed
 | publisher = Ericsson
 | date = June 30, 2010
 | url = http://www.ericsson.com/news/1428285
 | access-date = October 20, 2010
 | archive-url = https://web.archive.org/web/20101025030407/http://www.ericsson.com/news/1428285
 | archive-date = October 25, 2010
 | url-status = dead
 }}</ref><ref name="PR-LGSale">{{Cite press release
 |title       = Nortel Completes Sale of Shares in LG-Nortel to Ericsson
 |publisher   = Nortel Networks Corporation
 |date        = June 29, 2010
 |url         = http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100268778&locale=en-US
 |access-date  = October 20, 2010
 |url-status     = dead
 |archive-url  = https://web.archive.org/web/20110714195608/http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100268778&locale=en-US
 |archive-date = July 14, 2011
}}</ref> Ericsson also purchased Nortel's final operating unit, the Multi-Service Switch division, in September 2010 for US$65 million.<ref name="PR-MSSPurchase">{{Cite press release
 | title = Acquisition of Nortel's Multi-Service Switch business
 | publisher = Ericsson
 | date = September 25, 2010
 | url = http://www.ericsson.com/news/1446864
 | access-date = October 20, 2010
 | archive-url = https://web.archive.org/web/20100928091813/http://www.ericsson.com/news/1446864
 | archive-date = September 28, 2010
 | url-status = dead
 }}</ref><ref name="PR-MSSSale">{{Cite press release
 |title       = Nortel Announces Ericsson as Successful Acquirer of Its Multi Service Switch Business
 |publisher   = Nortel Networks Corporation
 |date        = September 25, 2010
 |url         = http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100269667&locale=en-US
 |access-date  = October 20, 2010
 |url-status     = dead
 |archive-url  = https://web.archive.org/web/20110714195617/http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100269667&locale=en-US
 |archive-date = July 14, 2011
}}</ref><ref name="MSS-Sale-Citizen">{{cite news
 |last         = Hill
 |first        = Bert
 |title        = Ericsson beats Ottawa bidders for last big Nortel division
 |work         = Ottawa Citizen
 |date         = September 26, 2010
 |url          = https://ottawacitizen.com/Ericsson+beats+Ottawa+bidders+last+Nortel+division/3582155/story.html
 |access-date  = October 20, 2010
 |archive-url  = https://web.archive.org/web/20100930150528/http://www.ottawacitizen.com/Ericsson+beats+Ottawa+bidders+last+Nortel+division/3582155/story.html
 |archive-date = September 30, 2010
 |url-status   = dead
 }}</ref> Nortel's [[Carling Campus|Ottawa campus on Carling Avenue]] was purchased by [[Public Works and Government Services Canada]] (PWGSC) in October 2010 for a cash purchase price of CDN$208 million,<ref>{{Cite press release
 |title       = Nortel To Sell Ottawa Carling Campus To Public Works and Government Services Canada
 |publisher   = Nortel Networks Corporation
 |date        = October 19, 2010
 |url         = http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100269828&locale=en-US
 |access-date  = December 31, 2010
 |url-status     = dead
 |archive-url  = https://web.archive.org/web/20110714195650/http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100269828&locale=en-US
 |archive-date = July 14, 2011
}}</ref> to serve as the new home of Canada's [[National Defence Headquarters (Canada)|National Defence Headquarters]].<ref>{{cite news
 | url = http://www.cbc.ca/news/canada/ottawa/dnd-nortel-campus-january-2017-photos-1.3899871
 | title = DND employees to begin moving into former Nortel campus in January
 | publisher = [[CBC News]]
 | date = December 17, 2016
 | access-date = December 17, 2016
 | archive-date = December 17, 2016
 | archive-url = https://web.archive.org/web/20161217183719/http://www.cbc.ca/news/canada/ottawa/dnd-nortel-campus-january-2017-photos-1.3899871
 | url-status = live
 }}</ref>

Nortel's 53.13% stake in Turkish company Nortel Netaş was acquired by [[One Equity Partners]] (OEP) and Rhea Investments for $68 million in December 2010.<ref>{{cite web |url=http://www.privateequityconnect.com/NewsContent.aspx?iid=56807 |title=One Equity continues pursuit of liquidated Nortel assets |publisher=privateequityconnect.com |access-date=April 21, 2011 |archive-url=https://web.archive.org/web/20131106010658/http://www.privateequityconnect.com/NewsContent.aspx?iid=56807 |archive-date=November 6, 2013 |url-status=dead}}</ref><ref>{{cite press release |url=http://www.legal500.com/firms/14006-paksoy/press_releases/12513 |title=Nortel Networks (Netas) Acquisition by OEP |publisher=Paksoy |access-date=April 21, 2011 |archive-url=https://web.archive.org/web/20121107011038/http://www.legal500.com/firms/14006-paksoy/press_releases/12513 |archive-date=November 7, 2012 |url-status=dead }}</ref>

The last major asset of Nortel, approximately 6,000 patents and patent applications encompassing technologies such as wireless, wireless 4G, data networking, optical, voice, Internet, and semiconductors, was sold for $4.5 billion to a consortium including [[Apple Inc.|Apple]], EMC, Ericsson, [[Microsoft]], [[BlackBerry Limited]], and [[Sony]], pending American and Canadian court approval.<ref name="CNET-PatentSale">{{Cite news
 | last = Musil
 | first = Steven
 | title = Apple, RIM in group buying Nortel patents for $4.5B
 | work = CNET
 | publisher = CBS Interactive
 | date = June 30, 2011
 | url = http://news.cnet.com/8301-1001_3-20075977-92/apple-rim-in-group-buying-nortel-patents-for-$4.5b/?part=rss&subj=news&tag=2547-1_3-0-20
 | access-date = October 7, 2011
 | archive-date = February 21, 2021
 | archive-url = https://web.archive.org/web/20210221015529/https://www.cnet.com/news/apple-rim-in-group-buying-nortel-patents-for-4-5b/
 | url-status = live
 }}</ref><ref name="Google-PatentSale">{{cite news | url=https://www.google.com/hostednews/ap/article/ALeqM5hy96xdAe1B7P0qvWlFBC-C7hwzvg?docId=03166dd1084a4fb8a9c099a14cc6c346 | agency=Associated Press | title=Nortel sells patents to consortium for $4.5B | date=July 1, 2011 | access-date=November 11, 2016 | archive-date=July 4, 2011 | archive-url=https://web.archive.org/web/20110704010044/http://www.google.com/hostednews/ap/article/ALeqM5hy96xdAe1B7P0qvWlFBC-C7hwzvg?docId=03166dd1084a4fb8a9c099a14cc6c346 | url-status=dead }}</ref> (Google had placed the initial stalking horse bid of $900 million<ref name="GlobeAndMail-PatentBid">{{cite news | url=https://www.theglobeandmail.com/report-on-business/google-bids-900-million-for-nortel-patents/article1969788/ | location=Toronto | work=The Globe and Mail | first=Iain | last=Marlow | title=Bid for Nortel patents marks Google's new push into mobile world | date=April 4, 2011 | url-status=dead | archive-url=https://web.archive.org/web/20110407100606/http://www.theglobeandmail.com/report-on-business/google-bids-900-million-for-nortel-patents/article1969788/ | archive-date=April 7, 2011 }}</ref> and later upped the bid to $1,902,160,540, then $2,614,972,128, and eventually $3.14159 billion, which are references to [[Brun's constant]], [[Meissel–Mertens constant]], and [[pi]].)<ref name="Google-PatentBid">{{cite news | url=https://www.reuters.com/article/us-dealtalk-nortel-google-idUSTRE76104L20110702 | title=Dealtalk: Google bid "pi" for Nortel patents and lost | work=Reuters | date=July 1, 2011 | access-date=July 2, 2011 | author=Damouni, Nadia | archive-date=July 3, 2011 | archive-url=https://web.archive.org/web/20110703071724/http://www.reuters.com/article/2011/07/02/us-dealtalk-nortel-google-idUSTRE76104L20110702 | url-status=live }}</ref> Bankruptcy filings state that Nortel owed former Canadian engineers $285,000 for patent awards that were not paid.<ref name="Citizen-PatentAwardsOutstanding">{{cite news|last=Hill |first=Bert |title=In patent wars, the casualty is progress |work=Ottawa Citizen |date=October 5, 2011 |url=https://ottawacitizen.com/touch/story.html?id=5502955 |access-date=October 20, 2011 }}{{dead link|date=May 2016|bot=medic}}{{cbignore|bot=medic}}</ref>{{Citation needed|date=March 2012}}

In October 2011, the administrators of Nortel's British subsidiary lost their appeal to overturn a court order requiring them to pay £2.1 billion into Nortel's underfunded pension plan.<ref name="Citizen-PensionPlanUKAppeal">{{cite news |last=Chellel |first=Kit |title=Lehman, Nortel lose $3.5B pension appeal |work=Ottawa Citizen |date=October 15, 2011 |url=https://ottawacitizen.com/business/Lehman+Nortel+lose+pension+appeal/5554405/story.html |access-date=October 20, 2011 |url-status=dead |archive-url=https://web.archive.org/web/20120207202542/http://www.ottawacitizen.com/business/Lehman%2BNortel%2Blose%2Bpension%2Bappeal/5554405/story.html |archive-date=February 7, 2012 }}</ref>{{Citation needed|date=March 2012}} Nortel's U.S. retirement income plan is now managed by the [[Pension Benefit Guaranty Corporation]].<ref>{{cite web |url=http://www.pbgc.gov/wr/trusteed/plans/plan-21391900.html |title=Nortel Networks, a PBGC trusteed pension plan |publisher=Pension Benefit Guaranty Corporation: A US Government Agency |access-date=July 18, 2014 |archive-url=https://web.archive.org/web/20140704051624/http://www.pbgc.gov/wr/trusteed/plans/plan-21391900.html |archive-date=July 4, 2014 |url-status=dead }}</ref>

In January 2014, a pact between the U.S. and European divisions of Nortel was approved by a U.S. court.<ref name = U.S.>{{cite news
| last = Brickley
| first = Peg
| title = U.S. Court Approves Claims Settlement Between Nortel's U.S., European Units
| work = Wall Street Journal
| date = January 7, 2014
| url = https://online.wsj.com/news/articles/SB10001424052702303933104579306633855379004
| access-date = February 24, 2014
| archive-date = February 26, 2014
| archive-url = https://web.archive.org/web/20140226173643/http://online.wsj.com/news/articles/SB10001424052702303933104579306633855379004
| url-status = live
}}</ref> However, litigation continued. In April 2016, Nortel went back to court for a fresh round of legal arguments.<ref>{{Cite news |url=https://www.bloomberg.com/news/articles/2016-04-05/nortel-bankruptcy-fight-resumes-with-2-billion-spent-on-fees |title=Nortel Bankruptcy Fight Resumes with $2 Billion Spent on Fees |newspaper=Bloomberg.com |date=April 5, 2016 |access-date=March 10, 2017 |archive-date=October 9, 2016 |archive-url=https://web.archive.org/web/20161009024101/http://www.bloomberg.com/news/articles/2016-04-05/nortel-bankruptcy-fight-resumes-with-2-billion-spent-on-fees |url-status=live }}</ref> Courts in the U.S. and Canada approved a negotiated settlement among competing creditors in January 2017.<ref>{{cite news |url=https://www.reuters.com/article/us-nortelnetworks-bankruptcy-idUSKBN1582TO |title=Nortel cleared to end bankruptcy, distribute $7 billion to creditors |work=[[Reuters]] |date=January 24, 2017 |access-date=August 30, 2017 |archive-date=August 31, 2017 |archive-url=https://web.archive.org/web/20170831083040/http://www.reuters.com/article/us-nortelnetworks-bankruptcy-idUSKBN1582TO |url-status=live }}</ref>

== Products <!-- do not rename section without changing forward reference in infobox --> ==
<!-- How do we format this correctly? -->
{{Category see also|Nortel products}}
{{See also|List of Microsoft–Nortel Innovative Communications Alliance products}}

Nortel made [[telecommunications]], [[computer network]] equipment and [[computer software|software]]. It served both general businesses and communications carriers ([[telephone company|landline telephone]], [[mobile phone]], and [[Cable television|cable TV]] carriers). Technologies included [[telephony|telephonic]] (voice) equipment, [[fiber-optic communication|fiber optics]], [[wireless LAN|local wireless]], and [[multimedia]].

Past products included:
{| class = wikitable
|-
! Telephone Systems
! Telephone sets and terminals
! [[Local area network|LAN]] and [[Metropolitan area network|MAN]] equipment
|-
| Application Server 5200 and [[Nortel Application Server 5300|Application Server 5300 (AS5300)]]
| [[Nortel business phones]], digital sets for Meridian and Norstar
| Baystack and ERS (Ethernet Routing Switch), managed [[network switch]]es for [[Ethernet]]; [[Nortel ERS 8600|ERS-8600]], ERS-8300, ERS-5600, [[Nortel ERS 5500|ERS-5500]], ERS-4500, ERS-2500
|-
| [[Digital Multiplex System]] (DMS and SL-100 families) large-scale digital carrier phone switch
| Northern Electric home phones
| [[Multiservice Switch|Multiservice Switch (MSS)]] (formerly Passport); MSS20000, MSS15000, MSS7400, MSS6400
|-
| [[Nortel Meridian|Meridian 1]] (SL-1) medium-to-large-scale [[Private branch exchange|PBX]]
| Northern Telecom home phones
| [[Metro Ethernet Routing Switch 8600]]
|-
| [[Meridian Norstar]] small-to-medium-scale digital [[key telephone system]]
| [[Nortel payphones]]
| Nortel Secure Network Access (switch and software)
|-
| [[Nortel Communication Servers]], medium-to-large-scale [[Voice over IP|VoIP]] PBX Systems; CS2100, CS2000, CS1500, CS1000
| Nortel IP Phone 1120E
|
|-
| [[Parallan Computer|Meridian Data]] Networking System (DV-1)
| [[Meridian M4020]]
|
|-
| SG-1 analog wired logic control PBX
|
|
|-
| SP-1 analog stored program control carrier switch
|
|
|-
! [[Router (computing)|Routers]]
! Software
! Other WAN equipment
|-
| Secure Router 1000 Systems; SR1004, SR1002, SR1001S, SR1001
| Visualization Performance & Fault Manager (VPFM)
| [[1 Mbit/s modem]]
|-
| Secure Router 3120
| [[Nortel Enterprise Switch Manager]]
| S/DMS [[SONET]]
|-
| [[Nortel Secure Router 4134|Secure Router 4134]]
| Nortel File and Inventory Manager
| OPTera Long Haul
|-
| Secure Router 8000 Systems; SR8002, SR8004, SR8008, SR8012
| Nortel Multi-link Trunking Manager
|
|-
| VPN Routers; 1750, 2700, 2750, 5000
| Nortel Multicast Manager
|
|-
|
| [[Nortel Speech Server]]
|
|-
|
| [[Passport Carrier Release]]
|
|-
|
| Nortel Routing Manager
|
|-
|
| Nortel Security Manager
|
|-
|
| Nortel VLAN manager
|
|-
|
| [[DiamondWare]] 3D Voice Platform
|
|-
|
| [[Nortel Unified Communications Management|Unified Communications Management]]
|
|-
|
| [[Agile Communication Environment]]
|
|}

== Criticism and controversy ==

=== Payments to lawyers and accountants ===
In 2016, the [[Canadian Broadcasting Corporation]] reported that lawyers and accountants received {{CAD|2.5}}{{nbsp}}billion from Nortel's estate.<ref>{{Cite news|url=http://www.cbc.ca/news/canada/ottawa/nortel-bankruptcy-disability-benefits-1.3796332|title=Former Nortel workers look to Liberals to restore disability benefits|work=CBC News|date=October 11, 2016|first=Julie|last=Ireton|access-date=October 12, 2016|archive-date=October 12, 2016|archive-url=https://web.archive.org/web/20161012045252/http://www.cbc.ca/news/canada/ottawa/nortel-bankruptcy-disability-benefits-1.3796332|url-status=live}}</ref>

=== Kathleen Peterson case ===
In 2001 Nortel's director of information services [[Michael Peterson trial|Kathleen Peterson]] was found dead at the bottom of a staircase in her home in Durham, NC. Nortel had been enduring heavy layoffs during this time, and family members report that Kathleen was worried she may too be laid off at Nortel.<ref>{{Cite web |last=CATAUDELLA |first=KIMBERLY |date=May 10, 2022 |title=HBO's 'The Staircase': Who was Kathleen Peterson and where did she work? |url=https://www.newsobserver.com/news/local/article260973672.html |access-date=6 Nov 2023 |website=The News and Observer}}</ref> This was used by the prosecution as motive for Kathleen's husband, [[Michael Peterson trial|Michael Peterson]], to murder Kathleen due to her 1.3 million-dollar life insurance policy (partly provided by Nortel) and the couple's $143,000 in credit card debt.<ref>{{Cite web |last=DALESIO |first=EMERY P. |date=2003-07-01 |title=Prosecutors: Money Was Motive in Killing |url=https://www.ourmidland.com/news/article/Prosecutors-Money-Was-Motive-in-Killing-7207032.php |access-date=2023-11-06 |website=Midland Daily News |language=en-US |archive-date=November 6, 2023 |archive-url=https://web.archive.org/web/20231106152035/https://www.ourmidland.com/news/article/Prosecutors-Money-Was-Motive-in-Killing-7207032.php |url-status=dead }}</ref>

=== Environmental damage ===
After bankruptcy, Nortel's estate faced {{CAD|300}}{{nbsp}}million in claims to pay for environmental damage at various sites, including Belleville, Brockville, Kingston and London.<ref>{{cite news |title=Nortel's toxic legacy: Cleaning up former sites to cost millions |url=https://www.cbc.ca/news/canada/ottawa/nortel-toxic-cleanup-ontario-belleville-1.4065596 |access-date=20 May 2020 |work=CBC News |date=April 12, 2017 |archive-date=October 1, 2020 |archive-url=https://web.archive.org/web/20201001054259/https://www.cbc.ca/news/canada/ottawa/nortel-toxic-cleanup-ontario-belleville-1.4065596 |url-status=live }}</ref>

=== Hacks ===
{{See also|Julian Assange#Hacking}}

In September 1991, [[Julian Assange]] was discovered in the act of hacking into the Melbourne master terminal of Nortel.<ref>{{cite magazine |last=Khatchadourian |first=Raffi |url=https://www.newyorker.com/reporting/2010/06/07/100607fa_fact_khatchadourian?currentPage=all |title=WikiLeaks and Julian Paul Assange |magazine=The New Yorker |date=June 7, 2010 |access-date=May 26, 2012 |archive-date=May 27, 2012 |archive-url=https://web.archive.org/web/20120527001503/http://www.newyorker.com/reporting/2010/06/07/100607fa_fact_khatchadourian?currentPage=all |url-status=bot: unknown }}</ref>

In 2001 Nortel identified knockoff products circulating in the Chinese market, where they did not compete.<ref>{{Cite news|last=Obiko Pearson|first=Natalie|date=July 1, 2020|title=Did a Chinese Hack Kill Canada's Greatest Tech Company? Nortel was once a world leader in wireless technology. Then came a hack and the rise of Huawei.|work=Bloomberg Businessweek|url=https://www.bloomberg.com/news/features/2020-07-01/did-china-steal-canada-s-edge-in-5g-from-nortel|access-date=July 2, 2020|archive-date=July 1, 2020|archive-url=https://web.archive.org/web/20200701193336/https://www.bloomberg.com/news/features/2020-07-01/did-china-steal-canada-s-edge-in-5g-from-nortel|url-status=live}}</ref> The management chose not to press the issue.<ref>{{cite web |last1=V. Hulme |first1=George |title=Why our lack of understanding on China may be the biggest risk |url=https://www.csoonline.com/article/2597397/why-our-lack-of-understanding-on-china-may-be-the-biggest-risk.html |archive-url=https://web.archive.org/web/20200804140718/https://www.csoonline.com/article/2597397/why-our-lack-of-understanding-on-china-may-be-the-biggest-risk.html |url-status=dead |archive-date=August 4, 2020 |website=csoonline.com |publisher=IOG Communications inc |access-date=14 June 2019 |date=August 25, 2014 }}</ref> Brian Shields, former chief security officer at Nortel, said his company was compromised in 2004 by China-based hackers; executive credentials were accessed remotely, and entire computers were taken over.<ref name="Kehoe">{{Cite web |last=Kehoe |first=John |date=26 May 2014 |title=How Chinese hacking felled telecommunication giant Nortel |url=https://www.afr.com/technology/web/security/how-chinese-hacking-felled-telecommunication-giant-nortel-20140526-iux6a |url-status=live |archive-url=https://web.archive.org/web/20190607204151/https://www.afr.com/technology/web/security/how-chinese-hacking-felled-telecommunication-giant-nortel-20140526-iux6a |archive-date=7 June 2019 |access-date=7 June 2019 |website=[[Australian Financial Review]]}}</ref> Nortel's own specialist did not find any abnormality. In 2008, Shields decided to approach an outside expert, who reported finding sophisticated malware in the company's machines and activities traced to Chinese IP addresses and discussions on a Mandarin [[Internet forum]]. Shields had tried to escalate the issue within the company, but senior staff members did not take any action. [[Mike Zafirovski]], one of Nortel's top executives at the time, was skeptical, citing Shields' reputation for exaggeration.<ref name="FinPo 2012">{{cite web |last1=Berkow |first1=Jameson |title=Nortel hacked to pieces |url=https://business.financialpost.com/technology/nortel-hacked-to-pieces |website=financialpost.com |publisher=Financial Post |access-date=7 June 2019 |date=2012-02-25 |archive-url=https://web.archive.org/web/20190607204136/https://business.financialpost.com/technology/nortel-hacked-to-pieces |archive-date=7 June 2019 |url-status=dead }}</ref>

Nortel sought for but failed to receive help from the [[Royal Canadian Mounted Police|RCMP]]. A former [[Canadian Security Intelligence Service|CSIS]] official said the agency approached the company but was rebuffed.<ref name="Globe and Mail 2012">{{Cite news |last=Marlow |first=Iain |date=15 February 2012 |title=Nortel turned to RCMP about cyber hacking in 2004, ex-employee says |work=The Globe and Mail |url=https://www.theglobeandmail.com/technology/tech-news/nortel-turned-to-rcmp-about-cyber-hacking-in-2004-ex-employee-says/article534295/ |access-date=7 June 2019 |archive-date=August 4, 2019 |archive-url=https://web.archive.org/web/20190804003449/https://www.theglobeandmail.com/technology/tech-news/nortel-turned-to-rcmp-about-cyber-hacking-in-2004-ex-employee-says/article534295/ |url-status=live }}</ref><ref name="Wall-Street-Hacker" />

Nortel allegedly failed to disclose the problem to potential buyers of its business, a "despicable" omission according to Shields. [[Avaya]] and [[Genband]] both acquired parts of Nortel, and some employees used old Nortel machines connected to the new companies' networks. Avaya says it has dealt with the issue after Shields informed the new companies of his investigation.<ref name="Wall-Street-Hacker">{{cite news
 | last = Gorman
 | first = Siobhan
 | title = Chinese Hackers Suspected In Long-Term Nortel Breach
 | work = The Wall Street Journal
 | date = February 14, 2012
 | url = https://www.wsj.com/articles/SB10001424052970203363504577187502201577054?_nocache=1329206812142&user=welcome&mg=id-wsj
 | access-date = February 14, 2012
 | archive-date = August 9, 2018
 | archive-url = https://web.archive.org/web/20180809111844/https://www.wsj.com/articles/SB10001424052970203363504577187502201577054?_nocache=1329206812142&user=welcome&mg=id-wsj
 | url-status = live
 }}</ref><ref name="The-Verge-Hacker">{{cite news
 | last = Tom
 | first = Warren
 | title = Hackers roamed Nortel's network for years without detection
 | work = The Verge
 | date = February 14, 2012
 | url = https://www.theverge.com/2012/2/14/2797047/nortel-undetected-hacking-breach
 | access-date = February 14, 2012
 | archive-date = February 15, 2012
 | archive-url = https://web.archive.org/web/20120215223049/http://www.theverge.com/2012/2/14/2797047/nortel-undetected-hacking-breach
 | url-status = live
 }}</ref><ref>{{cite journal | url=https://www.pcmag.com/article2/0,2817,2400242,00.asp | journal=PC Magazine | first=Chloe | last=Albanesius | title=Report: Nortel Breached by Hackers for Almost 10 Years | date=February 14, 2012 | access-date=September 6, 2017 | archive-date=June 17, 2017 | archive-url=https://web.archive.org/web/20170617192407/http://www.pcmag.com/article2/0,2817,2400242,00.asp | url-status=live }}</ref><ref>{{cite news |last=Stechyson |first=Natalie |url=https://ottawacitizen.com/news/Nortel+hacked+decade+according+report/6154044/story.html |title=Nortel hacked for a decade, according to report |work=Ottawa Citizen |date=February 15, 2012 |access-date=May 26, 2012 |archive-url=https://web.archive.org/web/20120428224649/http://www.ottawacitizen.com/news/Nortel+hacked+decade+according+report/6154044/story.html |archive-date=April 28, 2012 |url-status=dead }}</ref><ref>{{cite news | url=https://www.cbc.ca/news/business/nortel-collapse-linked-to-chinese-hackers-1.1260591 | work=CBC News | title=Nortel collapse linked to Chinese hackers | date=February 16, 2012 | access-date=February 16, 2012 | archive-date=February 16, 2012 | archive-url=https://web.archive.org/web/20120216131258/http://www.cbc.ca/news/business/story/2012/02/15/nortel-hacking-shields-as-it-happens.html | url-status=live }}</ref>

Cybersecurity experts have some doubts about a hack of such magnitude as described by Shields, calling it "unlikely". Shields does not think [[Huawei]] was directly involved, but industry insiders, including him, believe that Huawei and [[ZTE]] were beneficiaries of the hack.<ref name="Kehoe" /><ref>{{cite web |last1=Waddell |first1=Nick |title=Will allegations against Huawei forever change Nortel's legacy? |url=https://www.cantechletter.com/2012/10/will-allegations-against-huawei-forever-change-nortels-legacy/ |website=cantechletter.com |publisher=[[Cantech Letter]] |access-date=7 June 2019 |date=2012-10-15 |archive-url=https://web.archive.org/web/20190607221327/https://www.cantechletter.com/2012/10/will-allegations-against-huawei-forever-change-nortels-legacy/ |archive-date=7 June 2019 |url-status=live }}</ref><ref>{{cite web |last1=Payton |first1=Laura |title=Former Nortel exec warns against working with Huawei |url=https://www.cbc.ca/news/politics/former-nortel-exec-warns-against-working-with-huawei-1.1137006 |website=www.cbc.ca |publisher=CBC |access-date=24 June 2019 |archive-date=June 11, 2019 |archive-url=https://web.archive.org/web/20190611211113/https://www.cbc.ca/news/politics/former-nortel-exec-warns-against-working-with-huawei-1.1137006 |url-status=live }}</ref><ref>{{cite news |last1=Obiko Pearson |first1=Natalie |title=Did a Chinese Hack Kill Canada's Greatest Tech Company? |url=https://www.bloomberg.com/news/features/2020-07-01/did-china-steal-canada-s-edge-in-5g-from-nortel |access-date=1 July 2020 |work=Bloomberg News |date=1 July 2020 |archive-date=July 1, 2020 |archive-url=https://web.archive.org/web/20200701193336/https://www.bloomberg.com/news/features/2020-07-01/did-china-steal-canada-s-edge-in-5g-from-nortel |url-status=live }}</ref>

=== Government bailouts ===
==== 2003 ====
On February 16, 2003, the [[Winnipeg Sun]] published an article criticising the Canadian Federal government for propping up "mega-loser Nortel" through [[Export Development Canada]] (EDC). The article interviewed Walter Robinson of the [[Canadian Taxpayers Federation]] who termed this EDC support as "corporate welfare at its worst". Mr. Robinson was appalled that Canadians who already lost billions on Nortel on the stock market would be asked for even more money through their taxes to support Nortel.<ref name="SunMedia-EDC2003"/>

==== 2009 ====
The EDC had agreed to provide up to {{CAD|30}}{{nbsp}}million in short-term financing through an existing bonding facility. This money was previously available to Nortel, and no special funding was made available. The Canadian government resisted characterizing its position on Nortel as a bailout.<ref>{{cite news | url=https://www.reuters.com/article/idCAN1446286920090114 | work=Reuters | first=Randall | last=Palmer | title=Update 2-Canada government pledges to help Nortel | date=January 14, 2009 | access-date=July 1, 2017 | archive-date=November 24, 2020 | archive-url=https://web.archive.org/web/20201124050912/https://www.reuters.com/article/idCAN1446286920090114 | url-status=live }}</ref>

=== Illegal breach of trust in Nortel's Health and Welfare Trust ===
There have been reports of financial irregularities at Nortel's Health and Welfare Trust. [[Diane Urquhart]], a financial analyst, testified before a parliamentary committee that $100 million is missing from the HWT and that a $37 million loan to the corporation has not been paid back.<ref>[http://parlvuvod.parl.gc.ca/StreamLogger/2010/2010-03/000178b2.wmv Standing committee on Finance hearings] {{webarchive |url=https://web.archive.org/web/20150906000922/http://parlvuvod.parl.gc.ca/StreamLogger/2010/2010-03/000178b2.wmv |date=September 6, 2015 }}</ref> The HWT was an unregistered trust maintained by Nortel to provide medical, dental, life insurance, long-term disability and survivor income and pension transition benefits.<ref>[http://documentcentre.eycan.com/eycm_library/Project%20Copperhead/English/Court%20Orders/77.%20Settlement%20Agreement%20Order/EndorsementSettlement.pdf Superior Court of Justice&nbsp;– Ontario Endorsement] {{webarchive |url=https://web.archive.org/web/20100331035546/http://documentcentre.eycan.com/eycm_library/Project%20Copperhead/English/Court%20Orders/77.%20Settlement%20Agreement%20Order/EndorsementSettlement.pdf |date=March 31, 2010 }}</ref><ref>{{cite news |url=https://ottawa.ctvnews.ca/senate-kills-bill-that-would-help-disabled-nortel-workers-1.583953 |archive-url=https://web.archive.org/web/20121022025450/http://ottawa.ctvnews.ca/senate-kills-bill-that-would-help-disabled-nortel-workers-1.583953 |url-status=bot: unknown |archive-date=October 22, 2012 |title=Senate kills bill that would help disabled Nortel workers |work=CTV News |date=December 9, 2010 |access-date=March 12, 2011 }}</ref>
Until 2005 Nortel fully funded the disability insurance in its HWT. However, it is alleged that since then, the HWT Governance Committees and third party [[trustee]], [[Northern Trust]], breached their [[fiduciary]] duties to protect Nortel's disabled employees and survivors of deceased employees by allowing Nortel to misdirect over {{CAD|100}}{{nbsp}}million from the HWT for purposes inconsistent with the terms of the HWT.<ref>{{Cite web |url=http://ismymoneysafe.org/pdf/SystemicFailureofEmployerSponsoredDisabilityInsurance.pdf |title=Systemic Failure of Employer Sponsored Disability Insurance |access-date=February 5, 2016 |archive-url=https://web.archive.org/web/20160304000105/http://ismymoneysafe.org/pdf/SystemicFailureofEmployerSponsoredDisabilityInsurance.pdf |archive-date=March 4, 2016 |url-status=dead }}</ref>
As of March 1, 2012, Northern Trust continues to act as the paying agent for Canadian [[Nortel Retirees and former employees Protection Canada|Nortel pensioners]].<ref>{{cite web |url=http://www.kmlaw.ca/Case-Central/Overview/Status-Of-Case/?rid=107 |first=Koskie |last=Minsky LLP |title=Nortel Networks Corporation&nbsp;– Developments |publisher=Kmlaw.ca |access-date=May 26, 2012 |archive-url=https://web.archive.org/web/20111205225957/http://www.kmlaw.ca/Case-Central/Overview/Status-Of-Case/?rid=107 |archive-date=December 5, 2011 |url-status=dead }}</ref>

=== Bookkeeping irregularities ===
In 2007, both the [[U.S. Securities and Exchange Commission]] and the [[Ontario Securities Commission]] laid charges against former senior financial officials from Nortel including Frank Dunn who was fired from Nortel in 2004. Frank Dunn was promoted from [[chief financial officer]] to replace John A. Roth as [[CEO]] in November 2001. According to the SEC, Dunn and three other financial officers began to fudge revenue by misusing "[[bill and hold]]" transactions starting "no later than September, 2000". The SEC said that at least a year's worth of the alleged misconduct took place while John Roth was still CEO of Nortel, though no charges were laid against him.<ref>{{cite news | url=https://www.theglobeandmail.com/report-on-business/ex-nortel-ceo-john-roth-says-hes-cleared/article87339/ | location=Toronto | work=The Globe and Mail | first=Boyd | last=Erman | title=Ex-Nortel CEO John Roth says he's cleared&nbsp;– The Globe and Mail | date=March 13, 2007 | access-date=August 22, 2017 | archive-date=August 28, 2016 | archive-url=https://web.archive.org/web/20160828203836/http://www.theglobeandmail.com/report-on-business/ex-nortel-ceo-john-roth-says-hes-cleared/article87339/ | url-status=live }}</ref><ref>{{cite news|url=https://www.theglobeandmail.com/servlet/story/RTGAM.20070312.rnortelroth0312/BNStory/Front |title=Unknown |work=The Globe and Mail |date=March 12, 2007 |access-date=March 12, 2011 |location=Toronto }} {{Dead link|date=September 2013|bot=RjwilmsiBot}}{{subscription required|date=May 2012}}</ref>

=== Treatment of Nortel pensioners ===
On June 23, 2010, the ''[[The News & Observer|News and Observer]]'' published a story criticizing the treatment of Nortel pensioners by their former employer. According to the article, Nortel had asked a federal court to terminate medical coverage, prescription drug coverage, long-term disability, and life insurance of 4,000 retirees and dependents, claiming the benefits were costing the company $2 million per month. Nortel blamed the company's creditors for this decision.<ref name="Triagle">{{cite news
 |title       = Nortel wants to dump retirees
 |work        = News and Observer
 |date        = June 23, 2010
 |url         = http://www.newsobserver.com/2010/06/23/546757/nortel-wants-to-dump-retirees.html
 |url-status     = dead
 |archive-url  = https://web.archive.org/web/20100626042359/http://www.newsobserver.com/2010/06/23/546757/nortel-wants-to-dump-retirees.html
 |archive-date = June 26, 2010
}}
</ref>

=== Ex-CEO as creditor ===
In the middle of the decade, several class-action lawsuits were filed against [[John Roth (businessman)|John Roth]] and others, by former employees who felt that their 401K company plans were depleted due to misrepresentation by the defendants. They claimed they were duped into investing in Nortel stock, when those who encouraged them to do so allegedly knew that the company was ailing. In 2009, Roth filed a claim for {{CAD|1}}{{nbsp}}billion, aiming to become a creditor to the assets of Nortel along with all other Nortel employees, in case the class action lawsuits against him succeeded.<ref>{{cite news|url=https://www.cbc.ca/news/canada/ottawa/former-nortel-exec-seeks-1b-protection-from-lawsuits-1.851553#ixzz17Fo2R8fU|title=Former Nortel exec seeks $1B protection from lawsuits|date=December 17, 2009|work=CBC News Ottawa|url-status=dead|archive-url=https://web.archive.org/web/20100317143902/http://www.cbc.ca/canada/ottawa/story/2009/12/17/nortel-john-roth-lawsuits.html|archive-date=March 17, 2010}}</ref><ref>{{cite web|title=John Roth Wants Nortel's Help! |first=Mark |last=Evans |date=December 18, 2009 |url=http://www.allaboutnortel.com/2009/12/18/john-roth-wants-nortels-help/ |access-date=December 6, 2010 |url-status=dead |archive-url=https://web.archive.org/web/20110707113446/http://www.allaboutnortel.com/2009/12/18/john-roth-wants-nortels-help/ |archive-date=July 7, 2011 }}</ref>

=== Conflicts of interest ===
During Nortel's 2002 annual [[shareholders' meeting]] held in [[Halifax Regional Municipality|Halifax]], [[Nova Scotia]], several [[shareholder]]s (including [[J Robert Verdun|Robert Verdun]]) complained about non-arms-length relationships with service providers such as director [[Yves Fortier (lawyer)|Yves Fortier]], who provided legal services to Nortel while sitting on its board, and Nortel's auditors, [[Deloitte & Touche LLP]], who were paid $15 million for non-auditing services.<ref>{{cite web |url=http://www.lightreading.com/document.asp?doc_id=14491 |title=Shareholders Blast Nortel&nbsp;– Telecom News Analysis |publisher=Light Reading |access-date=May 26, 2012 |archive-url=https://web.archive.org/web/20120619051841/http://www.lightreading.com/document.asp?doc_id=14491 |archive-date=June 19, 2012 |url-status=dead }}</ref>

=== Headquarters bugging ===
In 2013, workers preparing the former Nortel headquarters for the [[Department of National Defence (Canada)|Department of National Defence]] discovered electronic eavesdropping devices.<ref>{{cite web |title=Was Nortel's Ottawa Campus bugged? |url=https://www.infosecurity-magazine.com/news/was-nortels-ottawa-campus-bugged/ |archive-url=https://web.archive.org/web/20200804185734/https://www.infosecurity-magazine.com/news/was-nortels-ottawa-campus-bugged/ |url-status=dead |archive-date=August 4, 2020 |website=infosecurity-magazine.com |publisher=Infosecurity Magazine |access-date=14 June 2019 |date=October 3, 2013 }}</ref> The bugs found were older and non-operational, leading Canadian intelligence to draw the conclusion that the former tenant (Nortel) and not the future tenant (DND) was the target.<ref>{{cite web |last1=Pugliese |first1=David |title=ottawacitizen.com |url=https://ottawacitizen.com/news/national/defence-watch/the-mystery-of-the-listening-devices-at-dnds-nortel-campus |website=ottawacitizen.com |publisher=Ottawa Citizen |access-date=14 June 2019 |date=October 18, 2016 |archive-date=June 26, 2019 |archive-url=https://web.archive.org/web/20190626092347/https://ottawacitizen.com/news/national/defence-watch/the-mystery-of-the-listening-devices-at-dnds-nortel-campus |url-status=live }}</ref>

== Corporate information ==

=== Headquarters ===
[[File:Nortel - Carling Campus (3443785027).jpg|thumb|Nortel's former Carling Campus at 60 Moodie Drive in [[Ottawa]], Ontario (now known as [[NDHQ Carling]])]]
During Nortel's dissolution, its head office was relocated to 5945 Airport Road in [[Mississauga]], Ontario.<ref name="NortelCanadaOffices">{{cite web
 |author      = Nortel Networks Corporation
 |title       = Nortel in Canada&nbsp;– Local Offices
 |publisher   = Nortel Networks Corporation
 |year        = 2009
 |url         = http://www.nortel.com/corporate/global/namerica/canada/offices.html
 |access-date  = December 10, 2009
 |url-status     = dead
 |archive-url  = https://web.archive.org/web/20020703022408/http://www.nortel.com/corporate/global/namerica/canada/offices.html
 |archive-date = July 3, 2002
}}</ref> Previous locations of its headquarters included 60 Moodie Drive in [[Ottawa]], Ontario (now [[NDHQ Carling]]), 8200 Dixie Road<ref>{{cite web |title=Nortel Brampton Headquarters |url=https://www.gettyimages.ca/detail/news-photo/nortel-plant-at-8200-dixie-rd-in-brampton-news-photo/165274997 |website=Gettyimages.ca |publisher=Gettyimages |access-date=7 December 2022 |date=2010-01-01 |archive-date=December 7, 2022 |archive-url=https://web.archive.org/web/20221207040142/https://www.gettyimages.ca/detail/news-photo/nortel-plant-at-8200-dixie-rd-in-brampton-news-photo/165274997 |url-status=live }}</ref> in [[Brampton]], Ontario (sold to [[Rogers Communications]] in 2006 and now known as [[Rogers Park, Brampton]]) and 195 The West Mall in [[Toronto]], Ontario (subsequently used by [[SNC-Lavalin]]).<ref name="WestMall">{{cite press release
 |title       = Nortel Selects Toronto Location for New Global Headquarters
 |publisher   = Nortel Networks
 |date        = December 20, 2005
 |url         = http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100192603&locale=en-US
 |access-date  = September 12, 2006
 |url-status     = dead
 |archive-url  = https://web.archive.org/web/20060104210854/http://www2.nortel.com/go/news_detail.jsp?cat_id=-8055&oid=100192603&locale=en-US
 |archive-date = January 4, 2006
}}</ref>

=== Global worksites, partners, and customers ===
[[File:Namco Nortel USA.jpg|thumb|Former research building in [[Santa Clara, California|Santa Clara]], California]]
Nortel expanded into the U.S. in 1971. The company eventually had employees in over 100 locations in the U.S. with [[Research and development|R&D]], [[software engineering]], and sales centres in many states including [[California]], [[Florida]], [[Georgia (U.S. state)|Georgia]], [[Illinois]], [[Maryland]], [[Massachusetts]], [[North Carolina]], [[Texas]], and [[Virginia]]. Nortel's full-service R&D centres were located in [[Ottawa]] (its [[Carling Campus|R&D headquarters]]), Beijing, and [[Guangzhou]].<ref name="Nortel-RandDLocations">{{cite web
 |author     = Nortel Networks
 |title      = Nortel's Major Research & Development Locations
 |year       = 2008
 |url        = http://www.nortel.com/corporate/technology_new/r_and_d_locations.html
 |archive-url = https://web.archive.org/web/20070505053450/http://www.nortel.com/corporate/technology_new/r_and_d_locations.html
 |url-status   = dead
 |archive-date = May 5, 2007
 |access-date = September 4, 2008
}}</ref> In Canada, Nortel also had R&D sites in Montreal, [[Belleville, Ontario|Belleville]], and [[Calgary]]. In the United States, Nortel's major R&D sites were in [[Research Triangle Park]] (North Carolina), [[Richardson, Texas|Richardson]] (Texas), [[Billerica, Massachusetts|Billerica]] (Massachusetts), and [[Santa Clara, California|Santa Clara]].

Nortel had a significant presence in Europe, Middle East, Africa, the [[Caribbean]], and [[Latin America]]. Nortel delivered network infrastructure and communication services to customers across Asia in (mainland) China, Hong Kong, Taiwan, South Korea, Japan, Singapore, Thailand, Malaysia, India, Pakistan, Australia, New Zealand, and Turkey (Nortel owned 53.17% of [[Netaş Telekomünikasyon|Nortel Netaş]], originally established as a joint venture with Turkish [[PTT (Turkey)|PTT]] in 1967).<ref>{{cite web
 |author      = Nortel Networks
 |title       = Nortel Netaş
 |year        = 2007
 |url         = http://www.nortel.com/corporate/global/emea/turkey/about_en.html
 |access-date  = August 8, 2007
 |url-status     = dead
 |archive-url  = https://web.archive.org/web/20070903172122/http://www.nortel.com/corporate/global/emea/turkey/about_en.html
 |archive-date = September 3, 2007
}}</ref>
In addition, the company had three joint ventures in the People's Republic of China, including Guangdong Nortel Telecommunications Equipment (GDNT), which operated Nortel's full service R&D centres in China.

=== Business structure ===

At the start of 2010, based on membership in Nortel's benefit plan, there were 1,637 employees working for Nortel Networks and 982 working for Nortel Technology in Canada.<ref name="MonitorReport-2010-02-23">{{cite web
 |author       = Ernst & Young
 |title        = Supplement to the Thirty-Ninth Report of the Monitor
 |date         = February 23, 2010
 |url          = http://documentcentre.eycan.com/eycm_library/Project%20Copperhead/English/Monitor%27s%20Reports/SupplementtoThirty-NinthRedatedFeb232010.pdf
 |page         = 28
 |access-date  = February 25, 2010
 |archive-url  = https://web.archive.org/web/20110128164241/http://documentcentre.eycan.com/eycm_library/Project%20Copperhead/English/Monitor%27s%20Reports/SupplementtoThirty-NinthRedatedFeb232010.pdf
 |archive-date = January 28, 2011
 |url-status   = dead
 }}</ref>
In February 2008, Nortel employed approximately 32,550 people worldwide, including 6,800 employees in Canada and 11,900 in the United States.<ref name="CBC-200802-jobcuts"/> Nortel operations were divided into the following segments:<ref>{{cite web|url=http://www.nortel.com/corporate/investor/reports/collateral/nnc_10q3_2006.pdf|title=Former Nortel exec seeks $1B protection from lawsuits|author=Nortel Networks|date=September 30, 2006|archive-url=https://web.archive.org/web/20061122164426/http://www.nortel.com/corporate/investor/reports/collateral/nnc_10q3_2006.pdf|archive-date=November 22, 2006|url-status=dead|access-date=November 12, 2006}}</ref><ref>{{cite web
 |author      = Nortel Networks
 |title       = United States SEC filing, 2007 First Quarter Form 10-Q
 |date        = March 31, 2007
 |url         = http://www.nortel.com/corporate/investor/reports/collateral/nnc_10q_q107.pdf
 |access-date  = June 26, 2007
 |url-status     = dead
 |archive-url  = https://web.archive.org/web/20070628112539/http://www.nortel.com/corporate/investor/reports/collateral/nnc_10q_q107.pdf
 |archive-date = June 28, 2007
}}
</ref>
* '''Carrier Networks (CN)''': Mobility networking solutions, including [[CDMA]], [[Global System for Mobile Communications|GSM]], and [[UMTS]], and carrier networking solutions, both circuit and packet based.
* '''Enterprise Solutions (ES)''': Enterprise networking solutions, including circuit and packet based voice, data, security, multimedia messaging and conferencing, and call centres.
* '''Metro Ethernet Networks (MEN)''': Optical and metropolitan area networking solutions, for carrier and enterprise customers.
* '''Global Services (GS)''': Services in four areas: network implementation, network support, network management, and network applications (including web services).

=== Corporate governance ===

Nortel's board of directors resigned and the board disbanded effective October 3, 2012. All remaining executive officers also resigned effective this date. As part of the wind-down process, a court order was issued providing Ernst & Young Inc., the court-appointed monitor in Nortel's creditor protection proceedings, the ability to exercise any powers which may be properly exercised by a board of directors of Nortel.<ref name="NortelBoardResigns">{{cite web
 |author       = Nortel Networks
 |title        = Nortel Announces Expanded Powers of Monitor under CCAA; Boards of Directors and Executive Officers Resign
 |url          = http://www.nortel-canada.com/2012/10/nortel-announces-expanded-powers-of-monitor-under-ccaa-boards-of-directors-and-executive-officers-resign/
 |access-date  = October 22, 2012
 |archive-url  = https://web.archive.org/web/20121018065028/http://www.nortel-canada.com/2012/10/nortel-announces-expanded-powers-of-monitor-under-ccaa-boards-of-directors-and-executive-officers-resign/
 |archive-date = October 18, 2012
 |url-status   = dead
 }}</ref>

==== Former members of the board of directors ====
{{Further|List of Nortel people}}

<ref name="NortelBoard">{{cite web
 |author      = Nortel Networks
 |title       = Board of Directors
 |url         = http://www.nortel.com/corporate/exec/board.html
 |access-date  = October 23, 2006
 |url-status     = dead
 |archive-url  = https://web.archive.org/web/20060412171658/http://www.nortel.com/corporate/exec/board.html
 |archive-date = April 12, 2006
}}</ref>
{{Col-begin}}
{{Col-break}}
* [[Jalynn Bennett|Jalynn H. Bennett]], CM
* Dr. Manfred Bischoff
* [[James Blanchard]]
* Robert Ellis Brown
* [[Frank C. Carlucci]], former chairman of the board
* [[John Cleghorn]]
* [[Frank Dunn]]
* [[Yves Fortier (lawyer)|Yves Fortier]]
* Hon. James B. Hunt Jr.
* Robert Alexander Ingram<ref>{{cite news|title=Investors Are Taking Long, Hard Look at Nortel's Board|url=https://www.nytimes.com/2004/05/13/business/investors-are-taking-long-hard-look-at-nortel-s-board.html|newspaper=New York Times|date=May 13, 2004|first1=Ken|last1=Belson|first2=Bernard|last2=Simon|access-date=February 19, 2017|archive-date=May 23, 2018|archive-url=https://web.archive.org/web/20180523091720/https://www.nytimes.com/2004/05/13/business/investors-are-taking-long-hard-look-at-nortel-s-board.html|url-status=live}}</ref>
* [[Kristina M. Johnson]]
* [[John Alan MacNaughton]]
* Hon. [[John Manley|John P. Manley]]
{{Col-break}}
* [[Richard D. McCormick|Richard David McCormick]]
* [[Claude Mongeau]]
* [[William Owens (Admiral)]]
* Harry Jonathan Pearce, former chairman of the board
* David Richardson, former chairperson
* [[John Roth (businessman)|John Andrew Roth]]
* [[Guylaine Saucier]]
* Sherwood Smith
* John D. Watson
* [[Lynton Wilson|Lynton "Red" Wilson]], former chairman of the board
* [[Mike Zafirovski]], former president and CEO
{{Col-end}}

==== Past leadership ====
<ref>{{cite web|title=Nortel's Past Leadership|url=http://www.nortel-canada.com/about/history/past-leadership/|author=Nortel|access-date=February 5, 2016|archive-url=https://web.archive.org/web/20160101083924/http://www.nortel-canada.com/about/history/past-leadership/|archive-date=January 1, 2016|url-status=dead}}</ref>
* [[Edward Fleetford Sise]], President of the Northern Electric Company (1914–1919)
* [[Paul Fleetford Sise]], President of the Northern Electric Company (1919–1948)
* [[Ralph Holley Keefler]], President of the Northern Electric Company (1948 –1964)
* [[Vernon Oswald Marquez]], President of the Northern Electric Company (1967–1971)
* John C. Lobb, President (1971–1974)
* David G. Vice, President and COO
* [[Walter Frederick Light]], President of Northern Telecom (1974–1982)
* [[Edmund B. Fitzgerald]], President (1982–1989)
* Paul G. Stern, CEO (1989–1992)
* [[Jean Monty]], President<ref>{{cite news | url=https://people.forbes.com/profile/jean-c-monty/131208 | work=Forbes | title=Profile: Jean C. Monty | access-date=September 6, 2017 | archive-url=https://web.archive.org/web/20120523152609/http://people.forbes.com/profile/jean-c-monty/131208 | archive-date=May 23, 2012 | url-status=dead }}</ref>
* Roy Merrills, President
* [[John Roth (businessman)|John Roth]], President, CEO and chairman of the Board of Nortel Networks (1997–2001)
* [[Frank Dunn]], President and CEO of Nortel Networks (2001–2004)
* [[William Owens (Admiral)|Bill Owens]], President and CEO of Nortel Networks (2004–2005)
* [[Mike S. Zafirovski|Mike Zafirovski]], President and CEO of Nortel Networks (2005–2009)

== See also ==
{{Portal|Telecommunication|Canada|Ontario|Companies}}
{{Div col}}
* [[Accounting scandals]]
* [[1-Meg Modem]]
* [[Bay Networks]]
* [[Bell labs]]
* [[Bell Telephone Memorial]]
* [[Bell-Northern Research]]
* [[Busy override]]
* [[Canadian industrial research and development organizations|Canadian Industrial Research and Development Organizations]]
* [[Data 100]]
* [[List of Nortel products]]
* List of Nortel protocols
* [[Mitel]]
* [[Multiservice Switch]]
* [[Nortel Government Solutions]]
* [[Nortel Retirees and former employees Protection Canada (NRPC)]]
* [[Passport Carrier Release]]
* [[Science and technology in Canada]]
{{Div col end}}

== Notes ==
{{NoteFoot}}

== References ==
=== Citations ===
{{Reflist}}

=== Sources ===
{{Refbegin}}
* Bruce, Robert V. [https://books.google.com/books?id=ZmR0MOQAu0UC ''Bell: Alexander Bell and the Conquest of Solitude''] {{Webarchive|url=https://web.archive.org/web/20160101083924/https://books.google.com/books?id=ZmR0MOQAu0UC |date=January 1, 2016 }}. Ithaca, New York: [[Cornell University|Cornell University Press]], 1990, {{ISBN|0-8014-9691-8}}.
* {{cite book |last1=Hunter |first1=Douglas |title=The Bubble and the Bear: How Nortel Burst the Canadian Dream |date=2002 |publisher=Doubleday Canada |isbn=0-385-65918-0}}
* {{cite book |title = Nortel Networks |url = https://archive.org/details/nortelnetworksho00macd |url-access = registration |first = Larry |last = Macdonald |publisher = John Wiley & Sons |year = 2000 |isbn = 0-471-64542-7 }}
* {{cite book
| title = The Invisible Empire: A History of the Telecommunications Industry in Canada
| first1 = Jean-Guy
| last1 = Rens
| first2 = Käthe
| last2 = Roth
| year = 2001
| isbn = 978-0-7735-2052-3
| publisher = McGill-Queen's Press&nbsp;– MQUP
}}
* Reville, F. Douglas. [https://web.archive.org/web/20120419162041/http://brantford.library.on.ca/localhistory/pdfs/reville1.pdf History of the County of Brant: Illustrated With Fifty Half-Tones Taken From Miniatures And Photographs], Brantford, ON: Brant Historical Society, Hurley Printing, 1920. Retrieved from Brantford.Library.on.ca May 4, 2012.
{{Refend}}

== External links ==

{{Sister project links|Nortel}}
* {{web archive|url=https://web.archive.org/web/20011215025843/http://www.nortel.com/index.html|title=Official website}}
* [https://bellsystemmemorial.com/northern_electric_history.html Northern Electric – A Brief History (from Bell System Memorial)] {{Webarchive|url=https://web.archive.org/web/20220207214827/https://www.bellsystemmemorial.com/northern_electric_history.html |date=February 7, 2022 }}

{{Finance links
| name = Nortel
| symbol = NT
| sec_cik = 1119664
| hoovers = Nortel_Networks_Corporation.40eb3af6156856d9
}}

{{NortelSystems}}
{{Bell Canada Enterprises}}
{{Electronics industry in Canada}}
{{AT&T Spinoffs}}
{{2008 economic crisis}}
{{Telecommunications}}
{{Authority control}}

[[Category:Nortel| ]]
[[Category:Defunct telecommunications companies of Canada]]
[[Category:Defunct manufacturing companies of Canada]]
[[Category:Defunct VoIP companies]]
[[Category:Accounting scandals]]
[[Category:Bell System]]
[[Category:BCE Inc. acquisitions]]
[[Category:Electronics companies of Canada]]
[[Category:Networking companies of Canada]]
[[Category:Networking hardware companies]]
[[Category:Telecommunications equipment vendors]]
[[Category:VoIP companies of Canada]]
[[Category:History of telecommunications]]
[[Category:Corporate spin-offs]]
[[Category:Telecommunications companies established in 1895]]
[[Category:Manufacturing companies disestablished in 2013]]
[[Category:1895 establishments in Quebec]]
[[Category:2013 disestablishments in Ontario]]
[[Category:Companies formerly listed on the Toronto Stock Exchange]]
[[Category:Companies that filed for Chapter 11 bankruptcy in 2009]]
[[Category:Companies that have filed for bankruptcy in Canada]]
[[Category:Defunct companies of Ontario]]
[[Category:Telecommunications companies disestablished in 2013]]
[[Category:Canadian companies disestablished in 2013]]
[[Category:Canadian companies established in 1895]]
[[Category:Defunct computer hardware companies]]
[[Category:Defunct computer companies of Canada]]