Nortel Network Communications, often simply referred to as Nortel, was a multinational telecommunications and networking communications equipment manufacturer headquartered in Mississauga, Canada. Once considered one of the, if not, the largest telecommunications equipment companies in North America, they have recently ceased operations and were bought out by a number of corporations. This article will discuss the history of Nortel, and discuss some of the most common Nortel phone models still on the market. If you already have a Nortel telephone system in your office and would like to discuss how you can get more out of it, contact us today!
“Network Telecom assisted us in moving and upgrading our system when we moved into a new facility. They have been with us while we grew and made additional changes. They are there for us when needed and have provided us with our equipment and program changes.They are a great group to work with.”
– Susan Land, Cargill (Click here to read more testimonials)
The Most Common Phone Models
Though Nortel is no longer the powerhouse telecommunication company they once were, they still have many phone systems on the market. Here are a few of the more common phone models you’ll still find in many businesses today:
- M8000 Series Analog Telephones
- M2000 Series Digital Telephones
- M3000 Series Digital Telephones
- M5000 Series Digital Telephones
- M7000 Series Digital Telephones
- T7000 Series Digital Telephones
- i2000 Series IP Phones
- 1100 Series IP Phones
If you want more information on these models or have any questions about Nortel phones systems, contact us today!
Do You Own An Older Nortel Phone System?
If you own an older phone system from Nortel you have a few choices pertaining to what you should do with that system.
1. Keep and repair the system
With this option you tend to save yourself some money by not purchasing an entirely new system, however you are leaving yourself open to the chance of faulty repair work. This is generally the best option for companies who do not use their phone system often, only need a temporary option and are satisfied with their phone system’s current features.
2. Purchase a 2nd hand option of the same model
Like repairing, this option saves you a little money up front but in the long run it may actually be more costly. Purchasing 2nd hand options leave you susceptible to faulty equipment or equipment nearing the end of it’s life. Also, by choosing to stay with the same model you limit yourself on receiving additional features. Again, a good option for those on a budget that don’t require many features.
3. Purchase a new system
This option requires the most cost up front but we believe in the long run it can be the most cost efficient option. Purchasing a new system gives you entirely new options so that you’re able to upgrade your system or stick to something similar to your current phone system. You are also given the peace of mind that your new system will provide you with many years of new service, and will be covered under warranty.
4. Replace parts as needed with Avaya
This option is very interesting. Avaya purchased Nortel’s enterprise solutions. As a result they developed telephone systems and handsets that can integrate with many models of Nortel’s products. With this option you can continue to use components of your Nortel system replacing certain components with Avaya until the whole system has been replaced with Avaya products. If you would like to discuss if this could work with your system give us a call.
The History of Nortel
Nortel began as a mechanical department within the Bell Telephone Company of Canada (now known simply as Bell) to be a manufacturer of telephone equipment in 1882. Quickly the department grew from 50 to 200 employees and a new factory was built in order to increase production. By 1895, this department was spun off from the Bell Telephone Company and was given its own name, the Northern Electric and Manufacturing Company.
In 1899, Bell also purchased a cable company named The Wire and Cable Company, which was soon renamed the Imperial Wire and Cable Company. In 1914, both Northern Electric and Manufacturing along with Imperial Wire and Cable were merged into one and named the Northern Electric Company. From that time until the 1950’s Northern Electric produced items such as toasters, kettles, cigar lighters, washing machines and radios.
At this time, AT&T/Western Electric owned shares in Northern Electric, but in 1949 they were forced to sell off their holdings as the result of an antitrust suit. No longer being tied in with Western Electric, AT&T began creating their own line up of products which included its first television sets.
In 1964, Bell Canada purchased 100 percent of all stakes in Northern Electric and they immediately began focusing on the telecommunications sector. In the late 60’s they began research into fibre optic cable and digitizing phone communications. In 1975, they became one of the first people to sell digital switching systems, which were made in their factory in Michigan. In 1976, they changed their name once again to Northern Telecom Limited, and again in 1995, when it finally took on the Nortel name. By the late 1990’s Bell Canada Enterprises ceased being the majority shareholder in Nortel. Nortel’s stock reached unheard of highs and it is estimated that at that time Nortel accounted for more than 1/3 of the total evaluation of all the companies listed on the Toronto Stock Exchange.
However, between 2000-2002 Nortel’s market capitalization fell from $398 billion to less than $5 billion and their stock plunged from $124 to only $0.47. Nearly two-thirds of their staff were laid off at this time and a new CEO, Frank Dunn, was appointed after the previous CEO, John Roth retired. In 2004, Dunn, along with financial officer Douglas Beatty and controller Michael Gollogly were fired for financial mismanagement, arrested by the RCMP and charged with fraud.
The following 5 years resulted in a financial struggle for Nortel, including having to pay out $575 million and 629 million shares for misleading investors about the strength of the company. After a series of lawsuits and a massive reduction in employees, Nortel filed for protection from creditors in 2009, considered to be the first major technology company to file for bankruptcy protection in the 2008 global downturn. After deciding it would not attempt to emerge from bankruptcy protection, Nortel began seeking buyers for all of their business units. It was bought out by companies such as Ericsson, Avaya, Ciena Corporation, Kapsch, Hitachi, and Genband.
Learn More About Network Telecom
Network Telecom provides support services to our customers 24 hours a day, 365 days a year. We have been in operation since 1979. Our decades of experience working with all aspects of business telecommunication technology throughout all of the innovations and changes of the information age have allowed us to become the best possible solution for your business telecom needs. Our goal is to provide purchase support and technical service that is unmatched. Network Telecom operates in the Kitchener-Waterloo, Cambridge, and Guelph region. Click here to contact Network Telecom today.
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