Ciena Eying Nortel’s Ethernet Division?

Telecom News Editorials Reports Glossary

1:38 am on March 16, 2009 | Category: Business, Corporate

Fiber-optic equipment manufacturer, Ciena Corp., is considering purchasing Nortel Networks’ Metro Ethernet division, according to an anonymous source familiar with the matter.

The Ethernet unit is thought to be worth approximately $300 million: money desperately needed by Toronto, Ontario-based Nortel, which entered bankruptcy protection in January, and is struggling to bring itself back from the brink of financial collapse.

Ciena, meanwhile, is looking to introduce new products, so as to reverse a recent slide in quarterly revenue. Purchasing Nortel’s Ethernet division would give the company a strong portfolio of broadband and video networking solutions for carrier customers.

Neither Nortel or Ciena would comment on rumours of a deal, calling the reports speculation.