Nortel Goes on the Defensive

Maybe Nortel Networks CEO Bill Owens’ extensive contacts within the U.S. military are going to pay off in spades after all. Maybe Owens, a former U.S. Admiral, wasn't pulling our legs when he talked about the new strategic focus on winning more government/military business. Maybe I’m going to have to finally bite my tongue about Nortel’s fuzzy strategy. What’s changed? Well, Nortel unveiled a contract today with the U.S. Department of Defense to create a new private network. Sure hope this is a sign of things to come because Nortel’s 2004 third-quarter results were disappointing when it came to wireless, optical and Asian sales. Then again, maybe putting strategic emphasis on the military and government is a no-brainer given President George Bush is intent on continuing the war on terrorism. The military and government market have potential for growth, which is a lot more than you can say about other parts of the telecom market.
ZDNet's Russell Shaw provides some more details about the contract, and asks whether it provides people with more confidence in VOIP.