LR: When you talk about optical networking you are obviously very enthusiastic about it. I would think it would be difficult to be enthusiastic about the state of the optical transport market.
Mumford: People aren’t buying long haul optical transport. That’s true. The market size had dramatically reduced. Metro optical sales are still actually clipping along, though. Metro optical is much more vital.
LR: So transport is becoming less important for Nortel as a company?
Mumford: For now.
LR: When does it become important again?
Mumford: When sales pick up.
LR: When is that?
Mumford: Don’t know. In the mean time we still have to make decisions on what we want to be in and what we want to move out of. And we’ve clearly made the decision that we will be “in” optical. We are still investing in the capability set that goes on top of HDX, for example, and if we didn’t believe that optical business was going to be important we wouldn’t do that. At the same time we are evaluating our business, and working on a business model that sizes our cost structure for the business that is available today, so that when it comes back we are in a position to be able to capitalize on that – but if it doesn’t come back for a while we won’t die.
(Or... is it?)