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Nortel assures little impact on Australian operations

by Staff Writers •
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A major supplier of telecommunications technology to key sectors of the Australian Federal Government, Nortel recently filed for bankruptcy protection from creditors in North America, Europe, Africa and the Middle East.

Nortel Networks provides telecommunications equipment, IT services, software and hardware primarily to the Australian Tax Office, Department of Defence and the Department of Finance.  The total value of these contracts over the past 6 years is in excess of $10 million, according to Intermedium data.

Nortel Networks now intends to continue operations on a smaller scale, narrowing its strategic objectives to overhaul its structure and save itself from mounting debt.

However despite overseas concerns, it seems that Australian operations will be largely unaffected by the decision. 

In an interview given to ARN, Nortel Asia Pacific vice president Andrew McLachlan has assured customers in the region that the climate is stable.

“We thought this was the most prudent thing for us to do for our business and our customers,” he said in the article.  “We are on track with what we said we were going to do in driving our operational focus and getting our portfolio alignment done.”

Australian Nortel distributor Anixter and service providers Gen-i, Artis and VoIP have all vowed to continue support to support Nortel’s local operations.

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