Nortel to Exit DSL Business: Report
TSC Staff
05/10/01 - 06:02 PM EDT
Nortel (NT Quote) is planning on exiting the digital subscriber line business in order to focus on higher-growth markets, according to a published report.
A Nortel representative wasn't immediately available for comment.
The telecommunications equipment company acquired the DSL technology, which supports high-bandwidth traffic over copper phone lines, through its acquisition of
Promatory Communications last year for about $778 million.
According to
Reuters, the company wouldn't comment on any goodwill charges or write-downs that might be associated with the discontinuation of the business line, but said staff cuts would be included in the previously announced 20,000 job reduction.
Shares of Nortel lost 58 cents, or 3.7%, to $15.22 at the 4 p.m. close of
New York Stock Exchange trading.
