More on GENBAND's Nortel CVAS bid

Just before the holiday break, GENBAND threw its hat into the Nortel ring in hopes of acquiring the Canadian vendor's much coveted Carrier VoIP and Application Solutions (CVAS) unit.

GENBAND launched a 'stalking horse' bid for Nortel's CVAS unit offering a purchase price for the CVAS unit of $282 million, but the total cost of ownership would be in excess of $400 million when all was said and done. The sale is still subject to a competitive bidding process, but so far no one else has launched a competing bid.

Recently GENBAND execs have been making the rounds shedding light on what the deal would mean. Telephony got ahold of GENBAND's chief marketing officer, Mehmet Balos who claimed that GENBAND would not be discontinuing any of Nortel's products but instead would just follow the normal product life cycle where as products decline they will be phased out. The newly launched CS2000 would be supported as planned.

Channel Insider also had a piece with some perspective from GENBAND CEO Charles Vogt who said the merger would be all about fueling the affordable network migration to cutting-edge VoIP technology.

A recent Dell'Oro Group report, Carrier IP Telephony Report, claimed that Nortel CVAS was the leading supplier in the global Carrier VoIP and softswitch market, and that while the overall VoIP market declined seven percent, Nortel's VoIP revenue grew four percent.

For more:
- read the Telephony article [1]
- read the Channel Insider article [2]

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Nortel CVAS leads the VoIP pack [5]
Nortel's earnings are down, but VoIP is looking up [6]