NORTEL NETWORKS CORP.

Current Price: 2.55

Nortel Networks Corp. (NYSE: NT), (TSX: NT) is a globally recognized company that focuses on the design, development, manufacture, assembly, marketing, licensing, sale, installation and support of products and services for converged multimedia networks used by telecommunications service providers and enterprises. Along with millions of individual consumers, Nortel deals with large corporations and government institutions.

Shareholders for Nortel experienced gains of 0.39% following 5,771,527 shares traded before the start of the weekend. Our research team feels that a recent press release may have contributed to Friday’s numbers. We thought a more in depth look at the sector as a whole would shed some light on these recent developments.

In sector news, the major technology exchanges met a little resistance going into the weekend as both the NASDAQ and the NASDAQ 100 suffered losses at market close. The NASDAQ fell 3.23 points settling in at 2,330.79 by the end of Friday. In other index news, Morgan Stanley's high-tech index rose 0.47 points to 546.10 points, and the NASDAQ 100 fell 6.19 points to 1703.98. Overall last week was a lackluster performance for the NASDAQ, as the tech index dropped 0.8% at the conclusion of Friday’s close. If the sector keeps steadily declining it could have a negative impact Nortel Networks Corp.

The future looks bright for this industry however, as large corporations are turning to the global market to increase their expansion and development. The two targets of big business are India and China. Both are beginning the long road to modernization and have massive consumer populations. There are challenges however, as dealing with the culture shock of foreign consumers can be difficult. Furthermore, sometimes the government itself can be an obstacle to some extent. Nortel has just recently opened up a facility in the Beijing area, which could provide new opportunities for this technology company. Only time will tell on whether Nortel can take advantage of this new avenue of consumerism and what effect it will have on its shareholders.

In their latest release, Nortel (NYSE: NT), (TSX: NT) announced the opening of a facility in Beijing by communications solutions provider, to support the development of products and strengthen its R&D capabilities in China.

The new facility, which is situated in Wangjing, in Beijing's Zhoggnuancun Science & Technology Park's Electronic City zone, incorporates a new R&D lab, the Nortel China headquarters and the new Executive Briefing Center (EBC) showcase.

The campus incorporates communications, audiovisual and presentation equipment, powered by Nortel's high-speed broadband technology. It includes a secure WLAN for indoor/outdoor Internet access and voice and multimedia services, a converged telephony network, IP and WLAN phones and high-speed data for multimedia applications.

According to Nortel the facility will develop next-generation communications technology intended to boost its competitive advantage and increase customer profitability. It said the EBC will allow customers to meet experts in Nortel technology and solutions in order to look into how they can gain increased levels of service and revenue opportunities.