Finally after years of losses as the Internet bubble collapsed and the recent mess with the financial crisis it comes as no surprise that Nortel has packed it in.
Nortel is now entering US chapter 11 insolvency but its likely now to be a de facto chapter 7 liquidation. In short, Nortel is now defunct. At its peak, Nortel has 94,500 people working for them. The news sent the stock down 79%.
The was accusations that spyware was permeating the servers that the company was using. Spyware has been widely used to identify trade secrets for competitive advantages. Now that the company is being wound up there will not be an option to scan the servers for tampering.
In September 1991, Julian Assange was discovered in the act of hacking into the Melbourne master terminal of Nortel. In 2012, The Wall Street Journal reported that in 2004, Nortel discovered that crackers gained almost-complete access to Nortel’s systems. Beginning in at least 2000 they accessed documents including emails, technical papers, research, development reports, and business plans. The breach was not properly addressed by the time the company filed for bankruptcy in 2009. Hackers working from Chinese IP addresses had allegedly used seven passwords of Nortel executives, including a former CEO, to penetrate networks owned by the company.
Huawei and ZTE both seemed to become very versant with telecommunications after the revelations of surveillance. No surprise that corporate surveillance is becoming a problem of epic proportions.