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Nortel 920-136 : Ethernet Switching Solutions Exam

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Test Number : 920-136
Test Name : Ethernet Switching Solutions
Vendor Name : Nortel
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Nortel questions

The Nortel breakup: commonly requested questions | 920-136 PDF Questions and test dumps

Toronto-primarily based Nortel, which has lost US$7 billion over the past three years, has been in chapter insurance plan considering that Jan. 14. Its board of administrators has gotten smaller to 3 from 9, and CEO Mike Zafirovski left the enterprise closing month.

The future of Nortel’s products and company continues to be unclear. no matter if you’re a Nortel user or a proud Canadian who wonders what will happen to what became once Canada’s telecommunications research powerhouse, you probably have several questions. We’ve accomplished the most efficient they can to supply solutions, according to interviews and testimony before the condo of Commons Standing Committee on business Science and know-how, which held an emergency listening to remaining month.

For extra tips try the Nortel interactive timeline

what's going to become of the enterprise unit?

here is a rely of speculation.

Avaya’s settlement to buy the unit, which makes switches, routers, IP telephones, unified communications and security items, is known as a stalking horse bid. under guidelines set by bankruptcy courts, other businesses can region competing presents for a similar belongings.

Ronald Gruia, main analyst for rising telecom with Frost & Sullivan, has said that put collectively, each enterprises would have greater than 20 IP telephones. It is not probably Avaya would retain all of them after a merger. however he delivered it makes feel for Avaya to hold Nortel’s contact centre items, as a result of customers have invested some huge cash in working towards on them.

One Nortel client is established drug maker Cobalt prescription drugs Inc. of Mississauaga, Ont. which uses Modular built-in Communications gadget (MICS). The company is “severely due to the fact that” switching to Ottawa-primarily based Mitel Networks Corp., stated Stephen Lem, Cobalt’s director of IT.

Lem noted he is thinking Avaya may additionally no longer guide all current Nortel items if it receives Nortel’s business unit. Avaya would no longer say the way it plans to combine the products, best stating that the auction has no longer taken area yet.

however in the short term, Avaya’s present is respectable for commercial enterprise consumers, spoke of Brownlee Thomas, a Montreal-based mostly fundamental analyst at Forrester analysis Inc.

“For Nortel, it says ‘We’ve obtained hope,’” Thomas observed on the time the deal changed into announced in July. “Of direction they don’t at all times know how long these products will be supported.”

What else is Nortel selling?

Nortel announced pretty much a year ago it desires to sell its metro Ethernet unit. so far, no patrons had publicly announced presents.

Nortel has offered to promote for US$1.13 billion the carrier instant assets to LM Ericsson, which already has a lab in Montreal.

Ericsson will get Nortel’s CDMA items and proceed to promote them to wireless carriers. Gruia speculates Ericsson should be in a position to

sell gadget an extra two years and repair the networks for at the least an additional 4 years after that.

Ericsson will additionally get a non-unique licence to make use of Nortel’s long run Evolution (LTE) patents, together with about four hundred Nortel

employees engaged on LTE. Ericsson was the profitable bidder in an auction that began in June with a $650 million stalking horse bid

from Nokia Siemens Networks.

Will the government evaluate the sale?

maybe. latest posted reports quoted best Minister Stephen Harper saying the deal “may be examined beneath the funding Canada Act.” network World Canada called the major Minister’s office to verify this become accurate. A spokesperson did not reply the question and requested us to e-mail the questions however has now not replied.

The funding Canada Act requires industry Canada to overview all acquisitions by way of overseas businesses exceeding $312 million. despite the fact Ericsson would pay US$1.13 billion, Nortel’s chief strategy officer, George Riedel, advised the apartment of Commons business, Science and expertise committee the “publication cost” of the assets Ercisson desires to buy is barely $149 million.

Committee member Brian Masse, New Democratic celebration MP for Windsor West, disputed Riedel’s declare, arguing the law states the $312 million cutoff refers to “enterprise value.”

although, Marie-Josee Thivierge, business Canada’s assistant deputy minister for small enterprise and marketplace functions, later testified the $312 million figure is truly the ebook value. She pointed out the cost would must be recorded on the most fresh year’s economic statements, agree to frequently approved Accounting principles (GAAP) and were audited.

Why would Ericsson pay $1 billion if the belongings are only worth $149 million?

Two causes. the primary is, Ericsson had to outbid Nokia Siemens Networks’ US$650 million present.

The book value, Riedel referred to, refers to present assets and glued belongings. It does not include “intangibles,” which might include patents, emblems and a future value of present consumer contracts. When questioning industry Canada officials, Masse spoke of corporations which are being acquired by using foreigners “can have any publication value they want.”

Masse seems to be relevant. In a separate interview, the Canadian Institute of Chartered Accountant’s vice-president of standards, Ron Salole, spoke of booklet price may consist of intangibles, but doesn't need to.

“All it skill is the price of assets you’ve received on your books,” Salole stated. “It depends on the company’s accounting guidelines.”

What are the political concerns around the revenue?

The sale of the service instant unit did not get the consideration of opposition politicians unless July 20, when research in action

Inc. requested for a review, claiming there are possible countrywide protection issues.

Neither the Liberals nor the NDP have made any noise about Avaya’s present to purchase the business unit.

Mike Lazaridis, RIM’s co-chief govt officer, testified that RIM tried to buy Nortel’s LTE patents earlier this year. RIM officials then found out about Nokia Siemens Networks stalking horse bid, which carried pretty much the same phrases as Ericsson’s acquisition and encompass a licencing agreement for LTE.

The indisputable fact that it now blanketed a licensing agreement “became a really unpleasant surprise” for RIM, Lazaridis testified. The licensing contract “renders Nortel’s LTE belongings of restricted cost to RIM,” Lazaridis introduced.

Mike Lake, Conservative Member of Parliament for Edmonton-Mill Woods-Beaumont, asked Lazaridis even if he changed into when you consider that legal motion in opposition t Nortel.

“We did believe it,” Lazaridis replied, adding: “We haven’t entire evaluating all their alternatives up to now.”

Ontario finance minister Dwight Duncan claims the “economic climate might be harmed” if the sale to Ericsson is permitted and questions Ericsson’s commitment to maintaining Nortel jobs in Canada.

The crux of research in motion’s argument is that through dropping LTE patents Canada’s national security can be in danger as a result of LTE may be used in networks used by the emergency functions, together with the Canadian Forces, right through emergencies. The branch of national Defence refused to touch upon this.

but Mark Tauschek, lead analyst for info-Tech research group, questions RIM’s declare. It does not rely who operates an LTE community, Tauschek noted. The exceptional and reliability of public wireless networks in Canada don't seem to be going to be modified if a different brand owns the underlying patents.

right through his testimony, Lazaridis called on business Canada to provoke a four-method dialogue between the govt, Nortel, Ericsson and RIM.

Marc Garneau, a Liberal MP, retired naval engineering officer and former astronaut, supported this request.

“before enabling Nortel’s property to go away the nation, they want this review to ensure the proposed sale is of ‘internet improvement’ to Canada,” Garneau wrote in a letter to the executive. Garneau apparently overlooked the testimony declaring the LTE assets will stay with Nortel and be licensed, on a non-exclusive foundation, to Ericsson. Ericsson is getting the CDMA property, which will dwell in Canada at its latest facility in Ottawa.

how many jobs would research in motion have kept?

Lazaridis dodged this question during testimony before the condominium of Commons Standing Committee on industry, Science and expertise.

Bloc Quebecois MP Robert Bouchard, not like the Liberal and NDP individuals, changed into not taken in through RIM’s spin doctoring. Bouchard requested Lazaridis twice to provide details on the personnel.

“we'd have persevered to develop the funding that Nortel has pioneered,” Lazaridis mentioned, without offering numbers. “There are unbelievable employees.”

Lazaridis stated RIM turned into dedicated to carrying on with to operate Nortel’s CDMA business, however didn't have “an opportunity to truly take into account the transaction or the particulars” because RIM would have had to sign a non-disclosure settlement.

against this, Ericsson officers promised the business, which already has 1,900 employees in Canada, would make use of 800 greater as a result of the acquisition. About 400 of these would work on future Evolution, Ericsson Canada president Mark Henderson testified before the committee.

“it is going to function largely as a separate business” in Ericsson and be “headed by using its latest administration,” he noted, adding Ericsson would retain Richard Lowe, Nortel’s president of provider networks.

all the way through his testimony, Lowe spoke of Ericsson is “committed” to preserving 2,500 Nortel jobs as a part of the transaction, that means about 1,seven hundred American Nortel personnel would keep their jobs.

Nortel would keep the LTE patents, contrary to claims by RIM and Garneau that Nortel’s belongings would “go away the nation.”

Will Nortel continue to exist in spite of everything of this? if so, the place will the income go?

These questions were posed by means of Anthony Rota, Liberal MP for Nipissing-Timiskaming, Riedel stated Nortel wants to promote its “principal businesses” however will hold its LTE patents if the Ericsson deal is closed.

As of Aug. 7, “no manner has been put ahead to cope with” the LTE patents however Nortel plans to post a plan to the chapter courts for approval, Riedel testified.

either means, the Nortel they knew — which employed one hundred,000 americans in 2000 and had US$28 billion in revenues — could be gone forever.

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