Gasta Profile:Nortel Networks Corporation

Nortel Networks Corporation (NYSE: NT) with revenues of $11.4 billion in 2006 is a global supplier of networking solutions to both service providers and enterprises. It is a leader in delivering VoIP and Wide Area Networking to carrier customers, holds the number-two position in providing carriers with optical equipment, is the number-one provider of total enterprise telephony lines, and is the second-largest provider of IP business telephony. Its business is organized in four segments: Carrier Networks (CN), Enterprise Solutions (ES) Global Services (GS), and Metro Ethernet Networks (MEN).

Nortel anticipates increase in demand for wireless networking solutions due to network traffic growth to support applications such as mobile video. To cater to this demand, it plans to increase its investment in metro Ethernet to support video delivery over wired as well as wireless access and in next generation products. To capitalize on the trend towards IP converged networks, it is trying to focus on the enterprise market and strengthen its end-to-end convergence solutions.

In 2006, it acquired Tasman Networks to strengthen its data networking portfolio and formed a strategic alliance with Microsoft to accelerate availability of unified communications. In 2005, it formed a joint venture with LG Electronics. In March this year, it announced that it would offer its own set-top box to carriers as part of its IPTV strategy. The set top boxes would be manufactured by its LG-Nortel joint venture.

In May 2007, Nortel announced its Nortel Hosted Solutions for enterprises and service providers. The portfolio, with a strong focus on the enterprise segment includes IP telephony, unified communications, automatic call distribution (ACD), contact centers and other network application services delivered to enterprises through service providers using equipment owned and managed by Nortel. It has also entered into an agreement with Polycom to jointly deliver telepresence and high definition (HD) video conferencing solutions to enterprises.

On the financial front, Nortel reported revenues of $2.56 billion in Q2 2007, a decrease of 8% compared to Q2 2006. Revenues decreased in the CN, MEN and GS segments, partially offset by an increase in the ES segment. The decline in revenue was mainly due to UMTS Access divestiture in 2006. It also reported net loss of $37 million compared to earnings of $342 million in Q2 2006. In Q1 2007, Nortel announced its 2007 Restructuring Plan which would reduce its workforce by 2,900 employees and shift approximately 1,000 positions from higher-cost to lower-cost locations. This plan is expected to save $400 million annually.

Nortel’s market cap is $7.47 billion, well below its annual revenue number. Its stock is on a downward trend since February this year when it had reached a high of $31.6. It is currently hovering around $17.

As the online video driven networking equipment market momentum marches on, a distinct possibility is that Cisco’s competitors would consolidate as a combined force. Today, the networking industry is represented as Cisco and the Seven Dwarfs. Well, if at least 3-4 of the dwarfs get together, the chances of actually being able to compete in specific markets would become higher. In fact, the combination of Nortel, 3Com and Polycom would create more efficient industry dynamics, whereby, rather than also having to compete amongst each other, they can focus their combined energy on competing with Cisco. It would also create a larger entity (although still only one-third the size of Cisco) that has product offerings in most of the important segments on the networking market, from Carriers, to Enterprise, to SME. The missing pieces need to be brought together from the other dwarfs, some of which we will explore this week.

In the meantime, Nortel, like 3Com, needs to continue cleaning up its house.

Gasta.com: Support New Irish Band BabyJenx Growing

Gasta.com are supporting two new bands from Ireland that are tipped for the top, venues and musicheads have been going mad on Myspace and Facebook to download the latest singles from Babyjenx, and The Beat Poets, to get information about these fantastic new and emerging talents, you can find links to both bands on Gasta.tv


About Baby Jenx
BABY JENX

"So beautiful, so intoxicating, so heavenly . . . Gary Reddy's voice reaches soaring glorious falsettos with an ease that would make Thom Yorke envious" – Musician.ie

THE BAND: Gary Reddy – guitar/vocals; Ewen Ferguson Denny - keyboards; Mick Reddy – bass; Graham Carey – drums

THE PAST: Named after a character in Anne Rice's Vampire Chronicles, Baby Jenx have been together since the summer of 2005. Influenced by the big stadium sounds of U2, Radiohead and Muse, but with their own musical aesthetic firmly to the fore, they played their debut gig in legendary Dublin venue Mother Redcaps later that same year.
“Thrilling and epic, two words to describe the performance on the night… with melodic grooves and superb vocals on board, this is one act you need to get out and see” - Musicreveiw.com

Over the following months, Baby Jenx honed their live skills with a multitude of gigs. Their sparkling shows at the Irish IMRO showcase, Boston's NEMO Music Festival and Castlepalooza earned them rave reviews.
"... singer Gary Reddy is a natural performer and exceptional singer" – IMRO magazine

They recorded their first demo with producer Declan Lonergan in Bluebird Studios in Co. Kildare. This demo received extensive radio airplay, and was immediately chosen as Hot Press magazine's 'Demo of the Fortnight' by none other than Jackie Hayden (the former CBS boss, known for giving U2 their first record deal).
"The real gem is 'So Long', which opens around a slow staccato piano before it builds with sensitivity and pathos to a real ear-opener" – Jackie Hayden - Hot Press

THE FUTURE: Baby Jenx are currently in studio recording their debut album proper. Entitled “Trial By Fire” it will be released early 2009.

"… the band of this year to hit the music scene, with melodic, streaming vocals and uplifting sounds … you must catch a live gig from these guys, you are missing something special" – Hotpress.com

Gasta Video News:

Online TV viewing doubles in past year

The number of Britons viewing TV online has more than doubled in the last 12 months, according to Ofcom.
The regulator’s annual UK Communications Market Report found the number of people watching TV programmes online grew from 8% to 17%, and nearly a third of internet
The number of UK internet users who watched YouTube hit 9m in April, nearly 50% more than a year ago, while the BBC iPlayer delivered more than 700,000 daily video streams in May 2008.

The number of households with digital video recorders grew 53% in 2007 to nearly 6m (23%) and the majority (88%) use them to fast-forward through ads.
The findings were in line with increased online ad spend, which, according to Ofcom, grew to £2.8bn in 2007, attracting more money than the combined ad spend on ITV1, Channel 4, Five and S4C. Take-up of broadband through a landline grew from 52% of households to 58% in 12 months.

This was mainly driven by consumers upgrading from dial-up to broadband.
More than one in ten mobile phone users have accessed the internet on their phone and 3G mobile connections increased by 4.7m (60%) in 2007 to reach 12.5m subscribers.

According to the Ofcom report, the average UK adult spent seven hours nine minutes a day using various communications services, six minutes more than in 2002. This includes radio listening, TV viewing, time spent online, texting or talking on the telephone.

Gasta Tech News: Mobile TV

Mobile TV is not that far away, Gasta.com has been looking at the leading companies that are ready to offer the middlepath software to enable mobile devices to become Mini television recievers.

Mobile TV services are based on two different technologies: the incumbent 3G-based services and the now emerging DVB-H-based services. Axel Technologies' solutions enable mobile TV services based on both technologies. The company's flagship product, Salmonstream Mobile, enables the implementation of full digital mobile TV service based on DVB-H. In addition to comprehensive middleware products, the company develops user interface software that supports several digital television standards.