Nortel Carrier Ethernet assets still up for grabs

Nortel’s CEO resigned as the company reported another steep loss and the auction of the key business proceeds. At this point, only the Carrier Ethernet business remains on the table, and the losses there matched those of the company overall.

We’ve noted that most of the operators we’ve talked to have been skeptical of the prospects for the sale of Nortel’s Ethernet business, given the fact that its prior successes were linked in part to PBT, which has lost momentum in part because of poor strategy on the part of Nortel.

The hope that Ericsson might buy the unit seems at least partially justified, but the question is whether a buyer as conservative as Ericsson could really gain much traction in the space at this point.