Rumor mill: Nortel's carrier VoIP auction coming soon

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 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

Related articles
Nortel CVAS leads the VoIP pack
Nortel VoIP and MEN speculation continues
It's official - Avaya now owns Nortel ES
Nortel ES sale discussion, opinion and analysis

Suggested Articles

Frontier Communications is looking to rebound from a disappointing second quarter last month by offering a new managed cloud IT service.

Tyson, Virginia-based GiGstreem raised $10 million in a Series B funding round that was led by RET Ventures with participation from LNC Partners.

Comcast sent its Senior VP of Next Generation Access Networks Elad Nafshi to the ONF conference today to announce its big step on virtualization of the cable…