Nortel News: Whither the Virtual Office?, Analyst Recap, 2008 Predictions, More Nortel/Motorola News

Whither The Virtual Office?

You remember when everyone was all excited about telecommuting? Remember all the buzz about being able to work from a home office without having to commute - unless you count going from the kitchen to the office a commute?

Well, it hasn’t happened nearly as much as everyone expected. In fact, companies such as AT&T (T) are clawing back their telecommuting operations, and putting more people in “satellite offices”.

Nortel’s (NT) Phil Edholm, however, is optimistic that telecommuting and mobile-working are still alive and well. In an interview with ZDnet, he believes the virtual office will become more prevalent with the emergence of converged networks, including mobile broadband wireless networks, that will let people work anywhere, any time.

Analyst Recap

Here’s the latest analyst re-cap for NT:

2008 Predictions

Nortel CTO John Roese makes some predictions for 2008. These include:

1. WiMax and LTE trials will get “some real air time”.
2. Unified Communications will eclipse VoIP
3. Spectrum policy will become so complex that we will realize that global harmonization will not be possible, nor really necessary.
4. Wireline and optical networks will take a major speed step forward and, with that, the fixed Internet experience will create new economic and experience options.

Mark Goldberg has some thoughts on Roese’s expectations.

More Nortel/Motorola News

It’s good to see Canada’s national newspaper, the Globe & Mail, finally pick up on the news that Motorola (MOT) may be dumping its handset business.

The story quotes RBC analyst Mark Sue that Motorola’s network equipment business could be attractive to Nortel.

While Motorola’s handset business is struggling, the G&M reports that other parts of the business are doing relatively well. Motorola’s home and networks mobility unit had a 9% rise in sales last year to $10-billion and operating profit of $709-million, while wireless sales to enterprise customers made an operating profit of $1.2-billion on sales of $7.7-billion.

If Motorola does push forward with a sale, the question is whether is sets the stage for a takeover. After all, a healthier, more profitable Motorola will surely attract the interest of suitors - at least, in theory. Then again, it would be a huge move at a time when the private equity landscape is looking increasingly unstable amid credit and recession concerns.

For Nortel, the issue is whether is has the capacity to do a deal given the complexities of putting together two massive businesses that would involve be extensive restructuring. Even with the sale of its handset business, Motorola would be almost twice as big as Nortel so Nortel would likely disappear as a Canadian company - something the Canadian government would be reluctant to see given how much financial support it has poured into the country’s flagship high-tech company.