Monday, February 16, 2009

Nortel Chapter 11 Bankruptcy

I think that it is sad to see a company file for bankruptcy, which also is a strong indicator of how Telecom equipment dealers are performing in the industry now. I have spoken to numerous partners and I have heard similar challenges facing the Telecom industry.

Nortel has been struggling for awhile and this current economic downturn has unfortunately put them in this position. They had too much consolidation in their customer base and were outperformed by Cisco and others.

Businesses today are seeking on-demand solutions and hosted options that involve less costly infrastructure. Thus competition is definitely more intense today in the world of telecommunications .... and those who offer advanced cost-effective solutions will be the winners.

If you have any thoughts on Nortel's bankruptcy experience .... similar potential outcomes with other telecom companies .... or contributing factors in the health or lack thereof in the telecommunication industry as a whole .... please fell free to leave a comment.

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