Nortel to auction next generation wireless packet core in October, judge says

By The Canadian Press

TORONTO - Nortel Networks Corp. (TSX: NT.TO) will be auctioning off its next-generation wireless packet core network assets in October, after a U.S. bankruptcy judge set a deadline for filing notice of a successful bidder.

The technology giant hasn't officially announced the dates for the auction process, but documents filed Wednesday in a Delaware court show that the company is required to file notice of a successful bidder to the courts by Oct. 26.

The company will then appear before the court to receive approval for the winning bidder on Oct. 28.

The packet core network components route signals for wireless traffic, and the division is a piece of Nortel's wireless business that didn't sell as part of the US$1.13-billion deal with Sweden's LM Ericsson.

Nortel also announced Sept.30 it would sell its GSM/GSM-R business in an auction.

Nortel is a supplier of GSM networks and has worked with operators around the world on implementing systems. GSM-R is used to provide secure communication for railways operators.

The company said qualified bidders will be required to submit offers by Nov. 5 with an auction on Nov. 9.

In a separate matter, U.S. bankruptcy judge Kevin Gross said that Nortel will meet with the Internal Revenue Service Oct. 1 to prepare for a trial over $3 billion in charges made to the company.

The dispute covers tax claims filed by the IRS in August, and the trial begins on Oct. 13.