Nortel yanked from NYSE?

Telecom equipment manufacturers are put to the test as the economy tightens.

Things are not looking all that rosy for Nortel these days, Canwest news had this to say..

With significant declines expected for the telecom equipment market in 2009, Nortel Networks Corp. runs the risk of losing market share regardless of whether it actually files for bankruptcy.

But while the company has denied it is pursuing insolvency protection and analysts say reports that it will are premature, others say a pre-emptive filing might not be a bad idea.

While Nortel is unlikely to face cash issues in 2009, UBS analyst Nikos Theodosopoulos said it might make sense to file in advance of a cash crunch.

Nortel on Thursday received notice from the New York Stock Exchange that it has six months to bring its average common share price back above $1 US, although the company said it is considering another share consolidation to remedy the problem.

Is this a reason to completely remove Nortel from consideration when shopping for a new small business phone system? No, it’s likley that they will get bought up or the government will bail them out (ugh, that is a whole other blog post), but if I were an SMB/SME looking at a Nortel solution I would likely give it some extra thought.

Can Response Point compete with Nortel in the SMB/SME space? I certainly believe that Response Point, when combined with high availability Internet and VoIP SIP trunks, drives great value and features not usually found in the 50 seat and under IP PBX offers.

The most significant advantage Response Point has over the competition (not just Nortel) is that it’s so darn easy to manage. Check out the Response Point Videos, more information on Response Point for Canada.

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