Need Gear? Call ABN

5:00 PM -- This note from Jefferies & Co. Inc. analyst George Notter today looks to impart the reality that Nortel must deal with until it recovers from its tailspin:

This is an incremental positive for Infinera Corp. (Nasdaq: INFN), Ciena Corp. (NYSE: CIEN), and Sonus Networks Inc. (Nasdaq: SONS). Nortel's financial distress won't materially improve the overall competitive environment for equipment suppliers. Nonetheless, we expect that Infinera, Ciena, and Sonus could pick up incremental business from existing Nortel customers over time.

Now, it's not as if Nortel has just disappeared completely. The company's gear is still at the heart of many service provider and enterprise networks around the world. But notes like this tend to suggest that, for a while, Nortel will be taken out of consideration for equipment spending. Is that too harsh a reaction, or is it appropriate, given the unstable economy?

— Phil Harvey, Editor, Light Reading

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