1
"#$ %&'$ ()* +(,, -+ ( .&()/ 0 -1 #-2 /- *$'/1-3 455 6&,,&-) 7-,,(1' &) 8 9$(1'0
1he CLM8A 2009 Þro[ecL
MorLen Cavlen
!avler Conzalez
..................................................................................................................... lrederlk nllner
2
1. LxLCu1lvL SuMMA8? ........................................................................................................ 4
2. ln18CuuC1lCn ................................................................................................................... 5
3. nC81LL - Ceneral 8ecenL PlsLory ....................................................................................... 6
lnLerneL 8ubble ...................................................................................................................... 6
AccounLlng 1roubles ............................................................................................................... 6
SLrucLure ................................................................................................................................. 7
1he lasL few ?ears before Lhe flllng ........................................................................................ 7
4. 8ankrupLcy llllng ................................................................................................................. 8
ChapLer 11, a descrlpLlon ....................................................................................................... 8
! ChapLer 7 - LlquldaLlon ................................................................................................. 8
! ChapLer 11 - 8uslness reorganlzaLlon .......................................................................... 8
! ChapLer 13 - lndlvldual reorganlzaLlon ........................................................................ 9
AfLer Lhe flllng ........................................................................................................................ 9
ManagemenL .......................................................................................................................... 9
3. 8ackground on norLel compeLlLlon ................................................................................... 11
Clena ..................................................................................................................................... 11
Clsco SysLems ....................................................................................................................... 11
Lrlcsson ................................................................................................................................. 11
AlcaLel LucenL ....................................................................................................................... 12
nokla Slemens neLworks ..................................................................................................... 12
Puawel .................................................................................................................................. 12
6. Analyzlng llnanclal uaLa .................................................................................................... 13
MeLhod ................................................................................................................................. 13
8ClC ...................................................................................................................................... 13
8eLurn on sales ..................................................................................................................... 13
CosL of goods sold ................................................................................................................ 13
Selllng, Ceneral and AdmlnlsLraLlve Lxpenses ..................................................................... 14
CaplLal 1urnover ................................................................................................................... 14
llxed AsseLs .......................................................................................................................... 14
lnLanglble AsseLs .................................................................................................................. 14
Cash poslLlon ........................................................................................................................ 15
Worklng CaplLal .................................................................................................................... 15
7. Analyzlng ManagemenL aL norLel ..................................................................................... 16
unclear sLraLegy + falled execuLlon = 8ad ManagemenL ..................................................... 16
8. norLel 8ankrupLcy - Þosslble fuLure developmenLs ......................................................... 19
8reaklng up Lhe famlly [ewels lnLo 8uslness unlLs ............................................................... 19
9. WhaL's lefL of norLel - whaL mlghL happen? .................................................................... 20
! LnLerprlse SoluLlons .................................................................................................... 20
! Carrler neLworks ......................................................................................................... 20
! MeLropollLan LLherneL neLworks (MLn) .................................................................... 20
10. Whlch companles wlll be lnLeresLed ln norLel's MLn ? Why ? ...................................... 23
!"#!$ .................................................................................................................................... 23
%&!%'(& &*!(+' .................................................................................................................. 23
(,"!##$+ .............................................................................................................................. 23
-*%.(" ................................................................................................................................ 23
'(&&%/# ................................................................................................................................ 24
"+0"+(,% .............................................................................................................................. 24
3
+#+ ....................................................................................................................................... 24
!"(+% .................................................................................................................................... 24
11. Concluslons ...................................................................................................................... 27
12. Appendlces ...................................................................................................................... 28
AbsoluLe Company AsseLs over 1lme (Mllllon uollars) ........................................................ 34
AbsoluLe 1urnover over 1lme (Mllllon uollars) .................................................................... 34
4
:; "@GF
lL ls a parL of evoluLlon, companles come and companles go. 1hrough Lhoroughly compllcaLed
mechanlsms, mergers, [olnL venLures, acqulslLlons and seml uarwlnlsL behavlors, new and
Lemporarlly sLronger unlLs are creaLed, only Lo face Lhe same processes over and over agaln. Looklng
back over Lhe lasL hundred years or so, a non negllglble number of greaL companles have seen Lhls
happen Lo Lhem, and Lhe world keeps Lurnlng afLer Lhelr dlsappearance as lL dld before. AcLually, Lhe
relaLlve number of companles LhaL survlve Lhe 100 year mark wlLh Lhe same baslc legal sLrucLure ls
very low, and lf we look aL companles once publlcly llsLed, Lhe number drops even furLher. 1he
owner sLrucLures, hlerarchles and lnvesLmenLs are dlrecLed and named dlfferenLly ln Lhe legal
framework LhaL our currenL socleLy ls governed by, all as a parL of Lhe eLernal baLLle for markeL,
suppller or cusLomer power, followed by a noL always loglcal mlxLure of lndlvldual demand for glory
and fame.
WhaL lf we look aL one of Lhe companles golng Lhrough a very sLrong change, maybe even rlsklng lLs
mere exlsLence? WhaL has been golng on ln Lhe company over Lhe lasL years (maybe evldence ls
hldden even furLher back, buL we shall llmlL ourselves Lo Lhe lasL few decades)? 8y dolng Lhls,
posslbly we can galn flnanclal and managerlal lnslghLs Lo be used ln fuLure slLuaLlons where Lhe rlghL
managerlal call has Lo be made.
1he Canadlan LelecommunlcaLlons company norLel, or more speclflcally norLel neLworks
CooperaLlon, ls an example we have chosen Lo follow Lhrough Lhe hardshlp of Lhe end oLher Lhe 20
Lh
and Lhe beglnnlng of Lhe 21
sL
cenLury, Lo Lhe flnally end up ln ChapLer 11 and under Canadlan
CredlLors proLecLlon acL. WhaL acLually wenL on flnanclally? Where Lhere managerlal lssues? Was
Lechnology lLself a facLor? Cr, whaL abouL Lhe markeLs, how dld Lhey behave ln Lhls Llme perlod?
All of Lhese quesLlons may noL be answered, some may lead us Lo lnslghLs. Cnly by dlvlng deep lnLo
Lhe remalns Lo be found ln llLeraLure, across lnLerneL and economlc [ournals can we geL ln under Lhe
surface and Lry Lo express whaL acLually wenL on. LeL Lhe [ourney begln.
B-H&$/3 ()* /$,$H-IIJ)&H(/&-)
1he 1elecommunlcaLlon lndusLry and all acLlvlLles assoclaLed wlLh lL has Laken an lmporLanL poslLlon
ln Lhe word economy. ln 2006 Lhe offlclal esLlmaLes clalm 3° of Lhe gross world producL (CuÞ), or
somewhere around uSu 1.2 1rllllon where allocaLed Lo Lhls lndusLry.
1
Macro economlcally speaklng,
a llnk beLween Lhe developmenL of Lhe Lelecom secLor ln a counLry and lLs economlc growLh ls
generally consldered as valld. Soclally Lhe behavloral paLLerns of Lhe new generaLlons are sLrongly
lnfluenced by Lhe new lnformaLlon era, wlLh SMS and soclal neLworklng slLes as Lwo examples of
second degree lmpllcaLlons of Lhe Lelecom developmenL. new leglslaLlve organs and debaLes on
lnLernaLlonal levels have been born alongslde Lhe Lechnologlcal evoluLlon and of course Lhe mlllLary
lmpacLs are evldenL.
1
« 1elecom lndusLry Lo reach 1.2 1rllllon ln 2006 », volÞ Magazlne, 2003
6
K; FG%" ?@@AB CMO?O E;55;1< 3=2 MGHIJ 1K 313:5
A comblned lÞ neLworks & opLlcal Lechnology for carrler and enLerprlse soluLlons.
• P51Q:5 #42F;R48 ?@@AB C?@SA E;55;1< 3=2 MIJ 1K 313:5H
1he separaLe servlce unlL proposlng servlce ln four maln areas: neLwork supporL, neLwork
managemenL, neLwork lmplemenLaLlon and neLwork appllcaLlons.
• +12345 P1F42
"#$ %&'$ ()* +(,, -+ ( .&()/ 0 -1 #-2 /- *$'/1-3 455 6&,,&-) 7-,,(1' &) 8 9$(1'0
1he CLM8A 2009 Þro[ecL
MorLen Cavlen
!avler Conzalez
..................................................................................................................... lrederlk nllner
2
1. LxLCu1lvL SuMMA8? ........................................................................................................ 4
2. ln18CuuC1lCn ................................................................................................................... 5
3. nC81LL - Ceneral 8ecenL PlsLory ....................................................................................... 6
lnLerneL 8ubble ...................................................................................................................... 6
AccounLlng 1roubles ............................................................................................................... 6
SLrucLure ................................................................................................................................. 7
1he lasL few ?ears before Lhe flllng ........................................................................................ 7
4. 8ankrupLcy llllng ................................................................................................................. 8
ChapLer 11, a descrlpLlon ....................................................................................................... 8
! ChapLer 7 - LlquldaLlon ................................................................................................. 8
! ChapLer 11 - 8uslness reorganlzaLlon .......................................................................... 8
! ChapLer 13 - lndlvldual reorganlzaLlon ........................................................................ 9
AfLer Lhe flllng ........................................................................................................................ 9
ManagemenL .......................................................................................................................... 9
3. 8ackground on norLel compeLlLlon ................................................................................... 11
Clena ..................................................................................................................................... 11
Clsco SysLems ....................................................................................................................... 11
Lrlcsson ................................................................................................................................. 11
AlcaLel LucenL ....................................................................................................................... 12
nokla Slemens neLworks ..................................................................................................... 12
Puawel .................................................................................................................................. 12
6. Analyzlng llnanclal uaLa .................................................................................................... 13
MeLhod ................................................................................................................................. 13
8ClC ...................................................................................................................................... 13
8eLurn on sales ..................................................................................................................... 13
CosL of goods sold ................................................................................................................ 13
Selllng, Ceneral and AdmlnlsLraLlve Lxpenses ..................................................................... 14
CaplLal 1urnover ................................................................................................................... 14
llxed AsseLs .......................................................................................................................... 14
lnLanglble AsseLs .................................................................................................................. 14
Cash poslLlon ........................................................................................................................ 15
Worklng CaplLal .................................................................................................................... 15
7. Analyzlng ManagemenL aL norLel ..................................................................................... 16
unclear sLraLegy + falled execuLlon = 8ad ManagemenL ..................................................... 16
8. norLel 8ankrupLcy - Þosslble fuLure developmenLs ......................................................... 19
8reaklng up Lhe famlly [ewels lnLo 8uslness unlLs ............................................................... 19
9. WhaL's lefL of norLel - whaL mlghL happen? .................................................................... 20
! LnLerprlse SoluLlons .................................................................................................... 20
! Carrler neLworks ......................................................................................................... 20
! MeLropollLan LLherneL neLworks (MLn) .................................................................... 20
10. Whlch companles wlll be lnLeresLed ln norLel's MLn ? Why ? ...................................... 23
!"#!$ .................................................................................................................................... 23
%&!%'(& &*!(+' .................................................................................................................. 23
(,"!##$+ .............................................................................................................................. 23
-*%.(" ................................................................................................................................ 23
'(&&%/# ................................................................................................................................ 24
"+0"+(,% .............................................................................................................................. 24
3
+#+ ....................................................................................................................................... 24
!"(+% .................................................................................................................................... 24
11. Concluslons ...................................................................................................................... 27
12. Appendlces ...................................................................................................................... 28
AbsoluLe Company AsseLs over 1lme (Mllllon uollars) ........................................................ 34
AbsoluLe 1urnover over 1lme (Mllllon uollars) .................................................................... 34
4
:; "@GF
lL ls a parL of evoluLlon, companles come and companles go. 1hrough Lhoroughly compllcaLed
mechanlsms, mergers, [olnL venLures, acqulslLlons and seml uarwlnlsL behavlors, new and
Lemporarlly sLronger unlLs are creaLed, only Lo face Lhe same processes over and over agaln. Looklng
back over Lhe lasL hundred years or so, a non negllglble number of greaL companles have seen Lhls
happen Lo Lhem, and Lhe world keeps Lurnlng afLer Lhelr dlsappearance as lL dld before. AcLually, Lhe
relaLlve number of companles LhaL survlve Lhe 100 year mark wlLh Lhe same baslc legal sLrucLure ls
very low, and lf we look aL companles once publlcly llsLed, Lhe number drops even furLher. 1he
owner sLrucLures, hlerarchles and lnvesLmenLs are dlrecLed and named dlfferenLly ln Lhe legal
framework LhaL our currenL socleLy ls governed by, all as a parL of Lhe eLernal baLLle for markeL,
suppller or cusLomer power, followed by a noL always loglcal mlxLure of lndlvldual demand for glory
and fame.
WhaL lf we look aL one of Lhe companles golng Lhrough a very sLrong change, maybe even rlsklng lLs
mere exlsLence? WhaL has been golng on ln Lhe company over Lhe lasL years (maybe evldence ls
hldden even furLher back, buL we shall llmlL ourselves Lo Lhe lasL few decades)? 8y dolng Lhls,
posslbly we can galn flnanclal and managerlal lnslghLs Lo be used ln fuLure slLuaLlons where Lhe rlghL
managerlal call has Lo be made.
1he Canadlan LelecommunlcaLlons company norLel, or more speclflcally norLel neLworks
CooperaLlon, ls an example we have chosen Lo follow Lhrough Lhe hardshlp of Lhe end oLher Lhe 20
Lh
and Lhe beglnnlng of Lhe 21
sL
cenLury, Lo Lhe flnally end up ln ChapLer 11 and under Canadlan
CredlLors proLecLlon acL. WhaL acLually wenL on flnanclally? Where Lhere managerlal lssues? Was
Lechnology lLself a facLor? Cr, whaL abouL Lhe markeLs, how dld Lhey behave ln Lhls Llme perlod?
All of Lhese quesLlons may noL be answered, some may lead us Lo lnslghLs. Cnly by dlvlng deep lnLo
Lhe remalns Lo be found ln llLeraLure, across lnLerneL and economlc [ournals can we geL ln under Lhe
surface and Lry Lo express whaL acLually wenL on. LeL Lhe [ourney begln.
B-H&$/3 ()* /$,$H-IIJ)&H(/&-)
1he 1elecommunlcaLlon lndusLry and all acLlvlLles assoclaLed wlLh lL has Laken an lmporLanL poslLlon
ln Lhe word economy. ln 2006 Lhe offlclal esLlmaLes clalm 3° of Lhe gross world producL (CuÞ), or
somewhere around uSu 1.2 1rllllon where allocaLed Lo Lhls lndusLry.
1
Macro economlcally speaklng,
a llnk beLween Lhe developmenL of Lhe Lelecom secLor ln a counLry and lLs economlc growLh ls
generally consldered as valld. Soclally Lhe behavloral paLLerns of Lhe new generaLlons are sLrongly
lnfluenced by Lhe new lnformaLlon era, wlLh SMS and soclal neLworklng slLes as Lwo examples of
second degree lmpllcaLlons of Lhe Lelecom developmenL. new leglslaLlve organs and debaLes on
lnLernaLlonal levels have been born alongslde Lhe Lechnologlcal evoluLlon and of course Lhe mlllLary
lmpacLs are evldenL.
1
« 1elecom lndusLry Lo reach 1.2 1rllllon ln 2006 », volÞ Magazlne, 2003
6
K; FG%" ?@@AB CMO?O E;55;1< 3=2 MGHIJ 1K 313:5
A comblned lÞ neLworks & opLlcal Lechnology for carrler and enLerprlse soluLlons.
• P51Q:5 #42F;R48 ?@@AB C?@SA E;55;1< 3=2 MIJ 1K 313:5H
1he separaLe servlce unlL proposlng servlce ln four maln areas: neLwork supporL, neLwork
managemenL, neLwork lmplemenLaLlon and neLwork appllcaLlons.
• +12345 P1F42