Editing Nortel (section)

== 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]].<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=live }}</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=August 2010}}</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=March 2018 |bot=InternetArchiveBot |fix-attempted=yes }}</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=http://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=May 2012}}</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>