Frank Dunn, chief executive officer of Canadian telecom equipment maker Nortel Networks, expects no mergers within this market segment. In an interview with Reuters he says that equipment makers will focus on money making products, rather than join hands with the competition. Nortel Networks has posted twelve straight quarterly losses, and it is not the only company that is feeling the drastic slump in spending by telecom service providers. Dunn said mergers would not help and that investment could slowly begin to pick up again. Rather than merging, equipment makers were looking at which part of their business they were really good at, Dunn said. Nortel is making inroads in Europe and Asia, where mobile operators are building next generation mobile phone networks, and is fighting Siemens for the No. 3 spot behind market leaders Ericsson and Nokia.
