With Nortel's Ethernet, CDMA, GSM and now the Enterprise Services flying off the shelves, it's only a matter of time that Nortel will open up the auction block for its Carrier VoIP and Application Solutions (CVAS) unit.
Avian Securities analyst Catharine Trebnick is predicting that a "stalking horse" bid for the CVAS unit could be made by a number of potential candidates as early as this week. What's making the unit attractive to potential bidders is the fact that it includes AT&T and Verizon as key customers.
Talk of auctioning off the CVAS unit has been running rampant since August, when a report in Canada's Financial Post emerged [1] that Nortel was close to getting an offer for its VoIP business.
In a research note, Trebnick named Genband, NEC, Nokia Siemens Networks and Sonus Networks as potential bidders for Nortel's CVAS unit. However, she said that Alcatel-Lucent, Ericsson and Huawei would be less likely to place a bid.
Trebnick suggests that NSN has an advantage over Genband or Sonus because it could bring more revenue and cost synergies and apparently AT&T would prefer to have NSN by Nortel's CVAS unit.
For more:
- Light Reading has this analysis [2]
Related articles
Nortel CVAS leads the VoIP pack [3]
Nortel VoIP and MEN speculation continues [1]
It's official - Avaya now owns Nortel ES [4]
Nortel ES sale discussion, opinion and analysis [5]
Links:
[1] http://www.fiercetelecom.com/story/nortel-voip-and-men-speculation-continues/2009-08-16
[2] http://www.lightreading.com/document.asp?doc_id=186039&
[3] http://www.fiercevoip.com/story/nortel-continues-lead-global-carrier-voip-market-according-delloro-group-infonetics-and-synerg
[4] http://www.fiercevoip.com/story/its-official-avaya-now-owns-nortel-es/2009-12-21
[5] http://www.fiercevoip.com/story/nortel-es-sale-discussion-opinion-and-analysis/2009-09-17