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Remember the last time you played Monopoly (TM) when a big player in the game who owned Boardwalk and Park Place went bankrupt, and how you and your friends couldn't wait to buy these nice assets for dimes on the dollars?

That's what may be in the process of occurring to Nortel right now. The Wall Street Journal (WSJ) reports that the communications firm, which is under creditor protection, has attracted several possible purchasers of its high-value enterprise and wireless equipment businesses.

According to The Canadian Press, the WSJ's website named Avaya and Siemens Enterprise Communications as potential purchasers of Nortel's enterprise product line according to well-placed sources. Cisco looked at the unit as well but is not expected to bid. Nortel is also is in talks to sell its wireless voice equipment division to firms such as Nokia Siemens Networks. Nokia Siemens Networks, which long has sought to expand its presence in the U.S.

The dilemma faced by Nortel, which is under creditor protection, is that by selling its most valuable units, which posted $6.7 billion in sales last year, is what it has left worth continuing in business for?

``'What we are finding is that there may be a lot more value by selling rather than emerging,'' said an unnamed source quoted by the paper. ``'The company was surprised by the amount of interest and the number of calls.''

``Selling the wireless gear business, which generates most of the company's cash, would complicate any plans to emerge from the bankruptcy process as a stand-alone company.'''

Appropriately enough the WSJ story comes on the heels of Nortel's latest financial results, released last week. The firm reported a $2.1 billion net loss in the fourth quarter 2008 (4Q 08) compared $3.4 billion in 3Q 08. This improvement lies in the shadow of a net loss of $5.78 billion for 2008 compared to that of $957 million for 2007.

4Q 08 revenues were up to $2.72 billion from $2.32 billion in 3Q 08, but down 15 percent from $3.2 billion in 4Q 07. Full year 2008 revenues of $10.42 billion represent a 5 percent decrease compared to that in 2007. A portion of that revenue growth came from contract completion and with this realization of previously deferred revenues rather than from sales.

Nortel's orders paint a similar picture. They were $2.64 billion for 4Q 08, up from $2.02 billion in 3Q 08 but down from $3.24 billion for 4Q 07. It cited lower orders for wireless and enterprise equipment for the drop between 2007 and 2008.

The firm is still hoping to pull itself up without breaking apart but that prospect appears to be less likely. The Globe and Mail reports that debtor-in-possession financing -- the lifeblood of most bankruptcy restructurings -- has all but disappeared this year.

"'Banks aren't exactly lining up to finance a purchase of Nortel assets,'" a banking source told the newspaper.

TMCnet has been tracking this story. Watch our space for more developments.

The ghost of Smoot-Hawley is baaack...and it is a real horror that spread misery worldwide, and could do again unless elected officials have the guts to drive a stake in its latest resurrection.

Smoot-Hawley is shorthand for the infamous tariff brought in the honorable Senator Reed Smoot from Utah and the honorable Representative Willis Hawley from Oregon, both Republicans, signed by GOP President Herbert Hoover in 1930. Infamous because economists then warned the President that that passage would worsen what became the Great Depression, and they were right, for it sparked a zero sum trade war whose net outcome left even those who would benefit with less and in too many cases with nothing.

The spirits of Sen. Smoot and Rep. Hawley appear to have taken over the bodies of North Dakota Senator Byron Dorgan from North Dakota and Representative Peter Visclosky of Indiana, this time both Democrats. Sen. Dorgan is sponsoring the "American-made" rule for construction and other equipment that would be used in the economic stimulus program, which funds public works, water, transportation and other construction projects as well as broadband communications deployments and energy research. Rep. Visclosky has strengthened the Buy American portions for steel in the recently-passed House version of the legislation.

Yes, protectionist measures are not new, trade agreements or no trade agreements. That's why non-U.S. firms like Bombardier have built manufacturing plants to comply with Buy America for transit equipment, at costs passed onto American taxpayers.

Yet steel especially, that's another matter. This is the raw nerve of industry--the European Union was originally set up to permit free trade in it--(in a 'past life' I had covered the steel trade), and a fair portion of the truly precious metal comes from Canada and other countries.

Mess with steel and you mess with other valuable commodities that come from other trade partners, like oil. You can bet that Canadian Prime Minister Stephen Harper will mention that one to President Obama in person when he visits Canada Feb.19. If not Mr. Harper's rival, Liberal leader Michael Ignatieff, will make sure the country will know it, based on reading a recent Toronto Star article:

'"We're not small beer here. We're the United States' largest energy supplier, not just oil, but also hydro, and they've got to understand that if they want energy security they shouldn't start putting up barriers to our goods and services,' " he told Global TV's Focus Ontario in an interview.

"'We don't need to talk about threats, but they need to understand, and this will be a message I will pass to the president, that we're a force to be reckoned with.'"

Here's the real nightmare: Smoot/Hawley (or Dorgan/Visclosky) spreading to other industries...like infotech. Does the U.S. really want to go there? After all silicon is to Silicon Valley what steel is to Gary...

There are creeping signs that this sector may be next, with contact centers as the thin edge of the wedge. As reported in the January issue of Customer Interaction Solutions, federal lawmakers may reintroduce a bill similar to H.R. 1776, The Call Center Consumer's Right to Know Act, which would require contact center agents to disclose the physical location of such employee at the beginning of inbound and outbound calls. Firms would also have to annually certify to the Federal Trade Commission (FTC) their compliance with such requirement.

H.R.1776 is an attempt to restrict offshoring by making customers aware that their calls may be going to or originating out of country. The bill's supporters hope customers and negative publicity would pressure firms to bring such jobs back to the U.S.

The downsides are that such bills may significantly add to contact center costs in both onshoring and time spent location disclosing and in compliance, which would ultimately be paid for by consumers. In doing so bills like it that hike contact center expenses may also be self-defeating as they may result in fewer domestic jobs.

"The particular type of disclosure contemplated by H.R. 1776 is a burdensome additional disclosure without clear benefit to the consumer," American Teleservices Association (ATA) CEO Tim Searcy told the House Energy and Commerce subcommittee Sept.11, 2008. "Each time additional disclosures or compliance requirements are added to the call, call lengths are increased, and the cost of doing business by phone increases and the quality of the interaction with the consumer declines. The rising costs of compliance and regulation are causing many firms to contemplate automation only, or offshore solutions to stay cost competitive."

President Obama knows his history and the current economic and political realities and has signaled that he is no Herbert Hoover. He understands the pain being felt by the constituents of the likes of the two elected officials pushing for those measures. But he depends on the cooperation of Congress to get his stimulus package approved ASAP.

Are there enough elected Congressmen and Senators who are wise enough to set aside their specific interests to look after the greater good and avoid a near-repeat of history that will hurt even those who short-term benefit from protectionist measures?
 

Rest assured customers and would-be buyers of Nortel's contact center and UC solutions.

The famed Canada-based communications solutions supplier is not going to hang up on you. If Canadian media reports are any indication, Nortel will increase its focus and presence on the enterprise--including contact center--markets. Which is not a bad thing given Nortel's excellent reputation for product engineering and innovation. Nortel has an alliance with Microsoft on UC that can be developed, overcoming its poor channel presence and marketing.

The (Toronto) Globe and Mail (and TMCnet.com) reported that Nortel will likely be spinning off its data and carrier divisions to avoid bankruptcy or disappearance, leaving it with enterprise solutions. There is too much competition especially offshore in these spaces, especially since the hardware and software can be produced cheaply abroad, which are also where the growth markets are--and these countries' cultures often prefer to deal with others in their regions rather than those outside.

Ironically, such a stripping down and repositioning would make Nortel's offerings akin to that of Avaya's: both firms share similar Bell manufacturing roots. Yet Nortel would be dependent on Microsoft to grow its space while Avaya has an excellent marketing arm. That makes for an interesting competitive triangle with Cisco. As Jon Arnold pointed out, in between is Microsoft that is not a big fan of Cisco, and Cisco is an arch-rival of Avaya. Avaya is also using increasing its use of open source, which is anathema to Microsoft.

Such an outcome with Nortel promises to be a richer, more competitive marketplace for business and contact center customers, what the cutting-edge open-source firms like Fonalty and aggressive carriers like UCN knocking on the door, and which wouldn't mind a piece of the enterprise pie.

A recent Wall Street Journal article on Web 2.0 brought home a key point for firms wanting to present themselves to this evolving and morphing mélange of business and social networking sites, of blogs and wikis in their CRM strategies: be prepared for the bad as well as the good.

Web 2.0 strips away for many organizations the comfortable and secure façade of the illusion that their products and service is the best there is, relatively insulated from what customers in general think of them thanks to what has been at this point de facto one way marketing.

These online forums and sites provide a loud, globally read, if occasionally unfair public opinion led by the leaders in those peer groups that geometrically magnifies the power and presence of the actual number and types of customer feedback received. They supply what can be a push forward and sometimes a push back to enterprises and their offerings. They also enable competing firms both overtly and covertly engage in influential positive and negative campaigns through their surrogates.

What Web 2.0 does is to immerse the firms participating or dragged into in public life. Everything about an outfit, their executives, and their offerings are fair game. Just like those who run for or are engaged in the business of elected office. As one who has run for public office, worked on many election campaigns, and who has covered such races, I can attest how challenging being able to promote and respond can be.

Web 2.0 requires, therefore, the same skills exercised by the political pros in devising and staying on message and deftly handling criticism and opponents. If you are to launch a Web 2.0 strategy you may want therefore to look for managers who have had successful election campaign experience and want to make some real money: public life does not pay handsomely. If there is anyone knows the game of people it is them.

Forget home and business computers. mCommerce is the killer app for eCommerce, and together it will enable retailers to be successful now and going forward provided it is fully integrated with the stores.

Thanks to at last the widening 3G and nascent 4G networks, and increasingly user-friendly smartphones that permit easier keying and surfing, prospects and consumers are researching and buying online, anytime, anywhere. They will want the convenience of finding a product on a website, like a must-have gift, then texting or calling the merchant and having it set aside for purchase at the nearest location, then guaranteeing it with a credit card.

The Acquity Group has correctly identified, in a recent white paper, that eCommerce will be the top channel for growth in 2009. It is seeing major department stores, specialty retailers, and manufacturers continue to invest in improving eCommerce. It says the competitiveness of these industries and the increasing demands of consumers will continue to force these organizations to invest despite economic conditions. Cuts will occur, but because of the strategic importance of the online channel it will be the last place people stop investing.

The Acquity Group says "leaders in this space see the downturn as an opportunity to gain greater market share over their competitors and continue to grow sales in their
online channel. The rest are beginning to realize the importance of this
channel as well."

What is also needed is for the smartphone makers to think bigger and come up with a device about the size of a 4x6 pic with a keyboard that can actually be used, with minimal errors, and a screen that can actually be seen (especially for those of us 40+ and who have the disposable income), for some real serious online shopping, e-mailing, and work...

Today is the 'last run' for the toll-free number connecting New Jersey Transit, the third largest transit agency in the US, with its customers.

Could this be the beginning of the end for toll-free numbers in North America?

NJ Transit has since June been switching callers from 800-772-2222 to 973-275-5555. When you call the toll free number today you will get a recorded message asking you to call the 973 number And according to an opinion piece in the July 22 Cherry Hill (NJ) Courier-Post, after July 31, there will no longer be any message at the 1-800 number.

NJ Transit abandoned toll-free to cut costs. The high gas prices have attracted more riders but have also increased the costs of diesel fuel used on its buses and many of its commuter trains: the agency also has an electrified commuter rail and light rail network.

The technology environment is finally right for ending toll-free service. NJ Transit, like many public agencies along with private companies, has been diverting calls away from live agents through the Internet, including a mobile-enabled site, and with proactive means such as automated outbound text alerts.

New Jersey residents, like many others across North America, have been switching from TDM to IP, which makes long distance charges irrelevant. My son, who lives in the central part of the state, bought IP with a package from his cable company. Also, North Americans are becoming used to paying per contact, as their counterparts in other parts of the world have long done, through their text messaging rates.

By dropping toll-free, NJ Transit could be blazing a trail for other companies and organizations to follow. The move saves money without cutting customer care, allowing scarce resources to be more efficiently deployed elsewhere.

There has been so far some cries against the move, such as the aforementioned newspaper editorial (see below), because it does increase the costs and hassle of information access from especially poorer customers. Yet the screams have not been loud enough at this point to get the agency to change its mind.

http://www.courierpostonline.com/apps/pbcs.dll/article?AID=/20080722/OPINION/807220303/1046

Who will be the next to follow in NJT's path? Do I hear any roar from the airlines?

Speech recognition-enabled automated voice solutions work best with heavily scripted interactions that leave little room for interpretation e.g. finding the right service, obtaining credit card balances, and ordering a movie.

For that reason more of these kinds of basic transactions are going automated with speech rec because they are relatively easy to do while permitting operating cost savings.

There are now so many firms and organizations that have deployed speech rec on their customer interaction front ends that these applications have taught us how to speak to the computers i.e. slowly, clearly, with little inflection.

And we all thought speech rec was about 'teaching' the machines to 'speak' to us...were we ever wrong...

For all the speech-rec current and in-the-pipeline candidate transactions there is one category that appears to be ready-made for this technology--but so far ignored--and that are the after-hours calls, such as for doctors, lawyers, plumbers, fuel oil dealers and furnace repairs now handled by answering services.

These contacts are ideal for speech rec because they are heavily scripted. These transactions have to be. The answering service agents (still called operators) can do little more than take or forward messages, or warm transfer calls to on-call staff, and page/dispatch professionally-trained personnel based on very strict procedures.

The agents themselves do not have medical or legal expertise, unless for 'dial-a-nurse' or other and more expense applications. And there may be unfunny consequences all around should these individuals attempt to give information that could be construed by callers as advice.

Which means these nice people can't fix your boo-boo, bail you out of the joint, or counteract the latest attempt of your 2 year old to turn your toilet into a one-size-fits-all alternate garbage disposal.

The real benefit of having live agents at all on such calls is the living, breathing, and reassuring presence of human beings. Yet at what price when they really cannot do much more, in many instances, than voicemail; a price that is included in the typically eye-opening bills that you get from these professionals and contractors.

I had a conversation some time ago with a friend who works for a contact center solutions vendor. He had twisted his ankle; he called up his doctor's office and then got the answering service. While the person at the other end was nice he couldn't even get an appointment set up. What help was that?

So that got me to thinking: could a standardized speech solution be developed for these professions and businesses? One that would deliver the same as or superior service while keeping costs--and bills--down?

And given how many of these professions and businesses with offices that are out there this could be the next speech rec killer app...

Here are some of the features this speech rec app could have:

--Customizable package scripting for each type of application (doctor, lawyer, contractor)

--Menu options including a link to an automated appointment scheduler application that would inform the caller the next available opening, and give that person the option of taking it, and if not the next one, and down the line

--Self-dispatch option with identifiers for existing customers, and intaking addresses for new customers, with the further choice of credit card prepayment or authorization

--Confirmation e-mails, texts, or automated voice messages

Now the one reason why I see this not being done to date is that speech rec apps are too expensive as currently delivered whether premises-based or hosted by outsourcers or developers for those businesses and offices who rely on answering services.

Yet if a savvy speech rec developer targets the communications providers (TDM, IP, wireless) that can offer these apps as a value-add to centralized voicemail, the market may be big enough to make the price affordable...with the added kicker of customer retention and increased lifetime customer value to the comm firms.

After all, if a client has contracted for a speech rec system, has customized it, and their customers are used to it, why change it?

This speech rec app could be killer in another way; it could do in those answering services that haven't made the transition to offering contact center services like customer care, which many of them did when voicemail pummeled their core message taking business.

How about it? Is this app in the realm of being doable? Is someone beta-ing one?

I'm all ears...

Want to 'drive' in more shoppers to your contact center and/or website? Get out the word that calling or going online saves gas (and saves the earth) compared with driving to the stores. Make sure you offer free shipping, and for added incentive, price your items less online or by phone.

The New York Times ran an excellent article July 19 on how high gas prices are turning in-store shoppers into virtual buyers. Partially as a result, online shopping is up, store shopping is down.

http://www.nytimes.com/2008/07/19/business/19shop.html?pagewanted=1&ref=technology

Along those lines consider making 'green' part of your CRM strategy where your top tier customers are enticed to come into the stores for truly personalized service, where they can check out the merchandise, and have it custom-fitted or built to their needs.

Senator Chris Dodd (D-CT), who is Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, plans to introduce legislation todasy to improve credit card billing, marketing, and disclosure practices (and, presumably, put a curb on predatory practices of the credit card industry). Dodd's Credit Card Accountability, Responsibility and Disclosure Act (the C.A.R.D. Act) is, according to the Senator, aimed at "stopping abusive credit card practices that drag consumers into staggering amounts of debt, and too often harm, rather than help, the ability of American families to move up the economic ladder."

Dodd plans to speak with reporters about the legislation at a press conference today, where he will be joined by Senate colleagues and consumer advocates.

TES

With Enron, you would have had $16.50 left of your original $1,000.00.

With WorldCom, you would have had less than $5.00 left.

But, if you had purchased $1,000.00 worth of beer one year ago, drank all of the beer, then turned in the cans for the aluminum recycling REFUND, you would have had $214.00.

Based on the above, the best current investment advice is to drink heavily and recycle.
It's called the 401-Keg.

TES