According to Infonetics Research, the router and switch market climbed 28% in the third quarter to US$1.6 billion, including 11% sequential growth in core and edge routers. While Juniper and Cisco continue to dominate the market, Avici Systems saw its market share tumble to 0.3% from 1.3%. This market share evaporation begs the question about Nortel's router strategy given its partnership with Avici, which includes a small equity stake. Does Nortel need to make a strategic acquisition to get a better/bigger market foothold? Buying Juniper is totally out of the question given Nortel's management and financial troubles but a small strategic acquisition(s) makes a lot of sense. Nortel would do well to follow the Cisco modus operandi when it comes to deal-making. Of course, Nortel tried to make strategic deals in the late-1990s but blew its brains out with a series of multi-billion dollar disasters. Interestingly enough, the guy who headed up that program - Bill Kerr - is now Nortel's CFO. Go figure!

Just an initial thought about Verizon's decision to sell its Telus shares: I wonder how this affects the future of Telus CEO Darren Entwistle? There has been some thought - at least in this corner - the next logial step for the young and ambitious Entwistle was a senior position with Verizon in the U.S. - some kind of V.P. job perhaps with responsibility for a particular region or business line. Does this possibility now disappear, or will this move make it easier for Verizon to poach Entwistle when the time comes? My feeling is Entwistle has at least another year at the helm of Telus and one big challenge: hammering out a new collective bargaining agreement with the Telecommunications Workers Union. With a deal under his belt and five years as CEO of Telus, Entwistle will have a pretty strong track record. What will be most attractive to a carrier will be his experience in restructuring operations and building a business at the same time.