Jack,
These are just components. The systems manufactured by Nortel are much, much more than just those parts. It is like selling just the spark plugs in a car. Essential, but not the whole product.
I know that it sounds odd that competitors would sell components to each other, but the different divisions of Lucent are not obliged to favor each other. Lucent network systems for example, is just another customer to Lucent microelectronics. Lucent microelectronics sells to Cisco, Nortel, Ericsson, Nokia, Motorola, Intel, Alcatel and many other companies that compete with different divisions of Lucent.
There are non-disclosures between customers that are respected so that this kind of business can be done.
When you think about it, it makes sense in terms of each division filling their markets the best they can. This is how all of the major telecom companies do business, in this strange incestious way they are simultanously cross-licensing/forming strategic alliances/competing all at the same time. |
