Nortel Networks Corporation , formerly known as Northern Telecom Limited , Northern Electric and sometimes known simply as Nortel , was a multinational telecommunications and data networking equipment manufacturer headquartered in Mississauga , Ontario , Canada.
It was founded in Montreal , Quebec in as the Northern Electric and Manufacturing Company. At its height, Nortel accounted for more than a third of the total valuation of all the companies listed on the Toronto Stock Exchange TSX , employing 94, people worldwide. Alexander Graham Bell conceived the technical aspects of the telephone and invented it in July ,  while residing with his parents at their farm in Tutela Heights,  on the outskirts of Brantford, Ontario.
He later refined its design at Brantford after producing his first working prototype in Boston. After Cowherd's death in which resulted in the closure of his Brantford factory, a mechanical production department was created within the Bell Telephone Company of Canada and production of Canadian telephones and telephone equipment was transferred to Montreal in ,  due to restrictions on importing telephone equipment from the United States.
As the manufacturing branch expanded, its production ability increased beyond the demand for phones, and it faced closure for several months a year without manufacturing other products. So in , the Bell Telephone of Canada was required to spin off its manufacturing arm to build phones for sale to other companies, as well as other devices such as fire alarm boxes, police street call boxes , and fire department call equipment.
This company was incorporated as the Northern Electric and Manufacturing Company Limited. Northern Electric and Manufacturing Company Limited was incorporated on 7 December , by the following corporate members or Board of Directors: McFarlane, manager, all of the city and district of Montreal , Quebec. The construction of a new manufacturing plant started in at Shearer Street in Montreal, Quebec, Canada, as preparations began for the two manufacturing companies' integration.
Then, in January , the Northern Electric and Manufacturing Company and the Imperial Wire and Cable Company merged into the Northern Electric Company , commonly known simply as Northern Electric, and the new company opened the doors on a new manufacturing plant in January This facility at Shearer Street was the primary manufacturing centre until the mids. During the First World War Northern Electric manufactured the Portable Commutator , a one-wire telegraphic switchboard for military operations in the field.
The use of alternating current was still under development during this time. The "Northern Electric Peanut tube was the smallest tube made, and drew only one-tenth of an ampere and was the most remarkable radio frequency amplifier ever made.
In July , CHYC-AM was the first radio station to provide entertainment to the riders of the transcontinental train , in a parlor car fitted with a radio set to receive the broadcast as it left Montreal and traveled west. During the Great Depression in the s, Northern Electric was affected, like most other companies. In , an antitrust suit in the U. Deprived of its Western Electric tie, Northern began developing its own products.
In , Northern Electric produced its first television sets using tubes made by RCA. In , the Northern Electric research lab, Northern Electric Laboratories the predecessor to Bell-Northern Research , started looking into the possibilities of fiber optic cable , and in , began work on digitizing telephone communications.
Also in , Northern began making inroads into the U.
In , it opened its first factory in the U. In , Northern began shipping its first digital switching systems , one of the earliest such systems to be sold. Northern Telecom was, with Bell-Northern Research, in the early s a part owner of MicroSystems International a semiconductor manufacturer based in Nepean, outside Ottawa.
In , the company name was changed to Northern Telecom Limited, and management announced its intention to concentrate the company's efforts on digital technology.
Northern Telecom was the first company in its industry to announce and to deliver a complete line of fully digital telecommunications products. The product line was branded "Digital World" and included the well known DMS , a fully digital central office switch serving as many as , lines, which was a key contributor to the company's revenue for close to 15 years. Northern Telecom became a significant supplier in Europe and China [ citation needed ] and was the first non-Japanese supplier to Nippon Telegraph and Telephone.
In , due to deregulation, Bell Canada Enterprises later shortened to BCE was formed as the parent company to Bell Canada and Northern Telecom. Bell-Northern Research was jointly owned by Bell Canada and Northern Telecom. The combined three companies were referred to as the tricorporate.
As Nortel, the streamlined identity it adopted for its th anniversary in , the company set out to dominate the burgeoning global market for public and private networks. In , with the acquisition of Bay Networks , the company's name was changed to Nortel Networks to emphasize its ability to provide complete solutions for multiprotocol, multiservice, global networking over the Internet and other communications networks.
As a consequence of the stock transaction used to purchase Bay Networks, BCE ceased to be the majority shareholder of Nortel. In , BCE spun out Nortel, distributing its holdings of Nortel to its shareholders.
Bell-Northern Research was gradually absorbed into Nortel, as it first acquired a majority share in BNR, and eventually acquired the entire company. In the late s, stock market speculators , hoping that Nortel would reap increasingly lucrative profits from the sale of fibre optic network gear, began pushing up the company's share price to unheard-of levels despite the company's repeated failure to turn a profit.
Under the leadership of CEO John Roth , sales of optical equipment had been robust in the late s, but the market was soon saturated. When the speculative telecom bubble of the late s reached its pinnacle late in the year , Nortel was to become one of the most spectacular casualties. At its height, Nortel accounted for more than a third of the total valuation of all the companies listed on the Toronto Stock Exchange TSX , employing 94, worldwide, with 25, in Canada alone. When Nortel's stock crashed , it took with it a wide swath of Canadian investors and pension funds and left 60, Nortel employees unemployed.
CEO John Roth retired in His planned successor and chief operating officer, Clarence Chandran, already on sick leave due to complications following his stabbing in Singapore,  decided to quit, however. This had some initial perceived success in turning the company around, with an unexpected return to profitability reported in the first quarter of On April 28, amidst the accounting scandal, three of Nortel's top lieutenants—Douglas Beatty, CEO Frank Dunn and Michael Gollogly—were fired for financial mismanagement.
The United States Securities and Exchange Commission SEC also filed charges against them and four vice-presidents for civil fraud. Nortel Networks subsequently returned to using the Nortel name for branding purposes only the official company name was not changed. Nortel acquired PEC Solutions, a provider of information technology and telecommunications services to various government agencies and departments, in June and renamed it Nortel Government Solutions Incorporated NGS.
Currie , previously the Chief Financial Officer CFO of the Royal Bank of Canada , was named CFO of Nortel in , having previously served as Northern Telecom's CFO in the s. Gary Daichendt , the former Chief Operating Officer of Cisco Systems , was hired as President and COO, and was expected to succeed Owens as CEO. Shortly afterward, Daichendt appointed ex-Cisco Chief Science Officer Gary Kunis as Chief Technology Officer CTO.
Both Garys were concerned about the overall direction of Nortel, especially when compared to Cisco, their previous employer. Just three months later, Daichendt resigned after both his restructuring plan and his suggestion that Owens and Currie leave the company immediately were rejected by the board of directors. Kunis quit shortly thereafter.
Zafirovski , who had served as President and CEO of GE Lighting and then as Motorola President and COO, succeeded Owens as president and CEO on November 15, Currie stepped down as Executive Vice President and CFO in early In February , Nortel announced its plans to reduce its workforce by 2, employees, and to transfer an additional 1, jobs to lower-cost job sites.
The Securities and Exchange Commission filed civil fraud charges against Nortel for accounting fraud from to ; the fraud was allegedly to close gaps between its true performance, its internal targets and Wall Street expectations. Nortel announced plans in February to eliminate 2, jobs, and to transfer another 1, jobs to lower-cost centres.
During its reporting of third quarter results, Nortel announced it would restructure into three vertically-integrated business units: Enterprise, Carrier Networks, and Metro Ethernet Networks. As part of the decentralization of its organization, four executive positions were eliminated, effective January 1, Chief Marketing Officer - Lauren Flaherty; Chief Technology Officer - John Roese; Global Services President - Dietmar Wendt; and Executive Vice President Global Sales - Bill Nelson.
A net reduction of 1, jobs was also announced. On January 14, , Nortel filed for protection from creditors, in the United States under Chapter 11 of the United States Bankruptcy Code , in Canada under the Companies' Creditors Arrangement Act , and in the United Kingdom under the Insolvency Act The Canadian government resisted characterizing its position on Nortel as a bailout.
Nortel initially hoped to re-emerge from bankruptcy, implementing a retention bonus plan in an effort to retain its top executives during the restructuring period.
With the worsening recession and stock market decline deterring potential companies from bidding for Nortel's assets, and many of Nortel's major customers reconsidering their relationships with the restructuring company,  in June Nortel announced that it no longer planned to emerge from bankruptcy protection, and would seek buyers for all of its business units.
The trust supports pensioners' medical, dental and life insurance benefits, as well as income support for some groups such as long-term disability recipients. January , a pact between U. April , Nortel Networks Corp. Nortel made telecommunications , computer network equipment and software. It served both general businesses and communications carriers landline telephone , mobile phone , and cable TV carriers.
Technologies included telephonic voice equipment, fiber optics , local wireless , and multimedia. In September , Julian Assange of WikiLeaks was discovered in the act of hacking into the Melbourne master terminal of Nortel. In , it was discovered that crackers malicious hackers gained almost complete access to Nortel's systems.
Thought to have originated in , for nearly ten years they accessed documents including emails, technical papers, research, development reports, and business plans.
The breach was not properly addressed by the time the company started selling some of its assets in , following a bankruptcy filing. The Wall Street Journal reports that hackers working from Chinese IP addresses used seven passwords of Nortel executives, including a former CEO, to penetrate networks owned by the company. Brian Shields , a former systems security advisor for Nortel, led an internal investigation on the breach and exposed rootkit software on at least two machines in that allowed hackers to control them remotely and monitor email.
Despite the original discovery in and the subsequent investigation that led to the rootkit detection in , Nortel allegedly ignored the problem and failed to disclose it to potential buyers of its business. Avaya and Genband both acquired parts of Nortel, and some employees used old Nortel machines connected to the new companies' networks.
Although Avaya says it has dealt with the issue, Shields says "it's despicable that Nortel didn't say anything," leaving it up to him to inform the new company of his investigation. Nortel refused to comment on The Wall Street Journal report, but former CEO Mike Zafirovski , in charge between and , claimed the company "did not believe it was a real issue. Shields went on to tell the Canadian Broadcasting Corporation that he believes the extensive cyberattacks on Nortel contributed to its downfall.
On February 16, , the Winnipeg Sun published an article criticising the Canadian Federal government for propping up "mega-loser Nortel" through Export Development Canada EDC. The article interviewed Walter Robinson of the Canadian Taxpayers Federation who termed this EDC support as "corporate welfare at its worst. There have been reports of financial irregularities at Nortel's Health and Welfare Trust. In , both the U. Securities and Exchange Commission and the Ontario Securities Commission laid charges against former senior financial officials from Nortel including Frank Dunn who was fired from Nortel in Frank Dunn was promoted from chief financial officer to replace John A.
Roth as CEO in November, According to the SEC, Dunn and three other financial officers began to fudge revenue by misusing " bill and hold " transactions starting "no later than September, ".
The SEC said that at least a year's worth of the alleged book-keeping took place while John Roth was still CEO of Nortel, even though no charges were laid against him. In the article "Nortel's Roth Rakes It In" published by Light Reading , Nortel was criticized for raising its CEO's pay just days before he announced his intention to retire in May The article went on to state that Nortel's share prices tumbled almost twentyfold during Roth's years at the helm of Nortel and its number of employees dropped dramatically.
In , Nortel paid tens of millions of dollars in so-called "return to profitability" bonuses, largely to a select group of senior managers.
In , despite continuing losses, layoffs, and declining share prices at the struggling telecom-gear maker, Nortel Networks CEO Mike Zafirovski was awarded a On June 23, , the News and Observer published a story criticizing treatment pensioners have been receiving from their former employer, Nortel. Nortel blamed the company's creditors for this decision. In the middle of the decade several class-action lawsuits were filed against John Roth and others, by former employees who felt that their K company plans were depleted due to misrepresentation by the defendants.
They claimed they were duped into investing in Nortel stock, when those who encouraged them to do so allegedly knew that the company was ailing. Nortel's current headquarters is located at Airport Road in Mississauga, Ontario. Nortel expanded into the U. The company eventually had employees in over locations in the U. Nortel had a significant presence in Europe, Middle East, Africa, the Caribbean , and Latin America.
Nortel to Buy Qtera in Stock Deal Valued at About $ Billion - WSJ
Nortel delivered network infrastructure and communication services to customers across Asia in mainland China , Hong Kong, Taiwan , South Korea, Japan, Singapore , Thailand , Malaysia , India, Pakistan , Australia, New Zealand, and Turkey Nortel owned At the start of , based on membership in Nortel's benefit plan, there were 1, employees working for Nortel Networks and working for Nortel Technology in Canada. Nortel's board of directors resigned and the board disbanded effective October 3, All remaining executive officers also resigned effective this date.
A group of Nortel alumni have created their own company, named E-MetroTel, to continue evolving the Nortel product into a next generation product line called the UCX. Based in Plano, Texas, the company consists of a group of Nortel engineers and developers who worked on the Nortel Meridian 1, CS, CS, Meridian Norstar, Business Communication Manager, and SCS platforms, while employed at Nortel.
Nortel PBX customers can reuse their phones, line cards and cabinets with their UCX PBX solution. From Wikipedia, the free encyclopedia. Nortel Networks Corporation Former type. List of Microsoft—Nortel Innovative Communications Alliance products. Julian Assange Hacking and conviction. List of Nortel people. Bennett , CM Dr. Manfred Bischoff James Blanchard Robert Ellis Brown Frank C.
Carlucci , former chairman of the board John Cleghorn Frank Dunn Yves Fortier Hon.
Robert Alexander Ingram  Kristina M. Johnson John Alan MacNaughton Hon. Manley Richard David McCormick Claude Mongeau William Owens Admiral Harry Jonathan Pearce, former chairman of the board David Richardson, former chairperson John Andrew Roth Guylaine Saucier Sherwood Smith John D.
Watson Lynton "Red" Wilson , former chairman of the board Mike Zafirovski , former president and CEO. Ottawa portal Toronto portal Companies portal. Bell then spoke with a Brantford friend, James Cowherd ? Bell sent Cowherd to Boston in to study Williams manufacturing processes for a number of months; Cowherd then returned to Brantford to both produce Bell's production telephones and help develop newer models.
Among Cowherd's designs was a transmitter fitted with a triple mouthpiece allowing three people to talk, and sing, simultaneously. Cowherd's untimely early death from tuberculosis was noted in major technical journals and led to the closure of the Bell Systems' manufacturing supplier plant in Brantford. Telephone production later resumed in Montreal, eventually leading to the creation of Northern Electric, later renamed Northern Telecom and then Nortel.
The embarrassing oversight came to light too late to stop wrecking crews, who were already tearing down the aged building at 32 Wharfe St The building, where equipment for Alexander Graham Bell 's first telephone was made, had even been pictured and written about in a city-printed brochure about the great inventor. A plaque erected by [the] Telephone Pioneers of America heralding the building's significance had been stripped from the structure in the mids and given to the Brant County Museum".
Retrieved August 6, Retrieved 19 November Retrieved October 7, Retrieved January 14, Retrieved November 18, Retrieved January 23, Pioneering The Telephone In Canada , Montreal: Kids Can Press, , p. The Early Volunteer Militia of Brant County: Canadian Military Heritage Museum , , p.
Retrieved 22 April Electricity, The Magic Medium , Thornhill, ON: IEEE, Canadian Region, , p. Retrieved November 13, City Has Lost Many Historic Buildings , Brantford Expositor , 5 April A History of Canadian Accounting Thought and Practice. University of Toronto Press. Retrieved April 3, A Modern Magazine of Rosicrucian Philosophy. Manual and Electromechanical Switching, 's 2, illustrated ed. Retrieved November 17, Retrieved September 12, The Contributions of R.
Canada's Telecommunications Hall of Fame. Retrieved October 14, Managerial and Decision Economics. Archived from the original on March 30, Retrieved July 28, Retrieved March 12, Retrieved December 15, The Globe and Mail. Letters show Nortel execs knew they were getting bonuses fraudulently, Crown alleges". Retrieved 7 July Retrieved December 9, Nortel case spotlights Canada corporate crime record , Toronto, Ontario: The New York Times.
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Retrieved January 31, American City Business Journals. Retrieved February 21, Retrieved July 25, Enters into Asset Purchase Agreement with Radware" Press release. Retrieved February 22, Retrieved June 19, Nortel shares are worthless". Retrieved November 22, Cautionary tale of a former Canadian titan". Archived from the original on November 7, Retrieved August 10, Retrieved July 21, Retrieved December 20, Archived from the original on November 24, Retrieved November 24, Retrieved October 1, Court Approval for Sale of Packet Core Assets" Press release.
Nortel to Buy Qtera for Up to $ Billion in Stock - TheStreet
Retrieved November 14, Archived from the original on March 8, Retrieved January 3, Retrieved October 20, Retrieved January 5, Retrieved December 31, Retrieved December 17, Retrieved April 21, Google bid "pi" for Nortel patents and lost".
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Cornell University Press , , ISBN A History of the Telecommunications Industry in Canada. History of the County of Brant: Illustrated With Fifty Half-Tones Taken From Miniatures And Photographs , Brantford, ON: Brant Historical Society, Hurley Printing, Find more about Nortel at Wikipedia's sister projects.
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