Nortel's continued sad decline

Once-proud Nortel is back in the news, this time with a funny story about how they have a hard time keeping their former subsidiaries as customers. This is especially funny since Nortel's big successes in the go-go 90s were selling switches to Baby Bells who defected from Western Electric when they needed more switches.

For a while there it seemed like half the people I knew went to work at BNR/Northern Telecom/Nortel, and then just as quickly, none of them worked there anymore. The telecom boom died, and everybody had more than enough expensive circuit-switched almost-obsolete equipment depreciating noisily in their expensively airconditioned telecom equipment rooms – around the same time that people really started using blackberry and VOIP in a serious way. The Bay Networks acquisition never fared well against Cisco. Nortel never managed to come out with anything that resonated in the marketplace again, and their financials reflect that.

The telecom industry has become very rapidly commodified, and Nortel's half-cousin and arch-enemy Avaya has become the standard for awful, expensive local PBX solutions, while Asterisk-based solutions are ruining the party for all of the lumbering giants. Nortel could have ridden the wave of open source to become a new low-price leader, but instead seems intent on circling the wagons and riding its customer base down the drain.

And back to the earliest item: they apparently don't have any competent public relations staff. That's pathetic.