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No, the bursting of the tech bubble and financial scandals killed Nortel. Huawei wasn't even a major player outside of China back when Nortel fell into trouble
by DiogenesKynikos 5y ago
No, the bursting of the tech bubble and financial scandals killed Nortel.
Huawei wasn't even a major player outside of China back when Nortel fell into trouble. From 2001-2004, Nortel's sales collapsed, it began downsizing, and the share price plummeted. In 2004, the SEC began investigating the company for financial fraud (misstating earnings).[1] Huawei only began to expand its overseas sales in 2003-2004.
The idea that hackers (whose identity isn't even known) brought down Nortel is just post facto rationalization of the mismanagement of the company. When the article says the hack began, in April 2004, Nortel's stock price was already down by over 90%, and the SEC was just announcing its investigation into financial irregularities at the company.
1. https://www.reuters.com/article/us-nortel-timeline-sb-idUKTRE50D3N120090114 https://www.reuters.com/article/us-nortel-timeline-sb-idUKTR...
- emkoemko 5y agonope the earliest they could tell the hackers where in the system was 2000 or earlier not 2004... CSIS warned them many times there was espionage activity but it looks like Nortel didn't take it seriously. They even found listening devices in their building after the company was gone.. during this same time they even clone a cisco router down to the same typo's having to compete with a company that has the backing of a state government and that has access to your plans and contract bidding pricing it wouldn't be hard to take them out.
- DiogenesKynikos 5y agoHuawei was not a major international player throughout this era. Competition with Huawei is not what led to the collapse of Nortel. Nortel's mismanagement and financial misrepresentations are its own fault, and trying to blame Huawei - which was barely on the international stage at that point - makes no sense.
- dragonelite 5y agoA giant usually doesn't fall because of outside forces because like they say barbarians are always at the gate. It usually mismanagement on top of mismanagement until they can't pay their bills anymore.
- arecurrence 5y agoI think this article title says it all "DND may abandon $1B move to former Nortel site because of surveillance bugs" https://www.ctvnews.ca/canada/dnd-may-abandon-1b-move-to-former-nortel-site-because-of-surveillance-bugs-1.1477766 https://www.ctvnews.ca/canada/dnd-may-abandon-1b-move-to-for...
- boomboomsubban 5y agoI'm not seeing this 2000 breach, but even then by 2001 they had laid off 2/3rds of their workforce, and faced repeated internal scandals after that.