Nortel recently filed for bankruptcy protection, but bankruptcy does not mean that the company is going to disappear. On the contrary, if done right bankruptcy should enable to company to shed dead weight, restructure to operate more efficiently, and emerge stronger than they were before filing bankruptcy.
Nortel’s contract with the United States Social Security Administration should help keep revenue coming in for some time. The contract, worth $300 Million over 10 years, is a huge win for Nortel and possibly the largest VoIP deployment undertaking in existence.
According to the article on CNNMoney.com “The new system, expected to become one of the largest enterprise VoIP deployments in the world, is already supporting more than 125 offices and more than 33,500 calls daily. To date, the new system has handled over 1.6 million calls. With 12-16 offices added each week, approximately 500 offices will be added per year until all 1,526 offices are online. Nortel Government Solutions has engineered the system to support over 100,000 phones. Installation and maintenance teams are positioned across the country for rapid deployment, training, and support.”
Some have argued that $300 Million seems a tad exorbitant for a VoIP system, but this isn’t just any VoIP implementation as noted above. Those same ‘some’ also argue that perhaps a United States government agency like the Social Security Administration should be investing their $300 Million with an American company rather than the Canadian Nortel. However, Nortel does a tremendous amount of business in the United States and employs many Americans, and Nortel Government Solutions (the entity that actually won the contract) is a wholly owned United States subsidiary of the Canadian networking giant. If they had the best solution at the best price, then the SSA made the right decision.