London 2012 replaces sponsor Nortel with Cisco

Jul 10, 2009 By ROB HARRIS , AP Sports Writer

(AP) -- London Olympic officials on Friday replaced bankrupt Canadian technology sponsor Nortel Networks with Cisco for the 2012 Games, a move that will cost organizers $19.4 million in revenue.

Nortel, which has begun selling off its assets, could no longer provide the network infrastructure services required for the games, the London 2012 organizing committee said.

While Nortel was a "tier one" sponsor providing around $65 million in cash and services, Cisco will only be a "tier two" provider.

California-based will fulfill all of Nortel's obligations, but London organizers estimate that it will provide about $20 million less in cash.

"Nortel acknowledges our fixed deadlines and our desire to have a single supplier for our entire network infrastructure have been impacted by Nortel's decision to move towards standalone businesses," London 2012 chief executive Paul Deighton said. "This is in no way a reflection of their capabilities - this is all about meeting our fixed deadlines."

Organizers have raised almost $810 million by signing up 20 sponsors providing services and cash. The sponsorship target is between $1.05 billion and $1.13 billion.

Nortel, a company with a 127-year history in Canada, became the first major technology company to seek protection in the global downturn in January.

Nortel is in advanced talks to sell the rest of its operations after agreed to buy some wireless operations.

©2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Explore further: Dish restores Turner channels to lineup

add to favorites email to friend print save as pdf

Related Stories

Nortel to sell itself off in pieces

Jun 20, 2009

(AP) -- Nortel Networks, once a technology giant, has decided to sell itself off in pieces rather than attempt to emerge from bankruptcy as a restructured company.

Eyes on Huawei-Nortel broadband deal

Feb 02, 2006

Nortel's decision to tie up with China's Huawei Technologies to develop broadband access is seen as a good deal for the Canadian telecommunications group. Yet some industry analysts are questioning whether the same could ...

Recommended for you

Dish restores Turner channels to lineup

8 hours ago

Turner Broadcasting channels such as Cartoon Network and CNN are back on the Dish network after being dropped from the satellite TV provider's lineup during contract talks.

'Call of Duty' blasts past $10 bn in sales

Nov 20, 2014

Blockbuster military shooter video game "Call of Duty" has blasted past $10 billion in lifetime sales, propelled by demand for the latest installment in the 11-year-old franchise.

Square's point-of-sale service goes global

Nov 20, 2014

Financial services startup Square is taking aim at cash registers across the globe, making its point-of-sale software available internationally in English, Spanish, French and Japanese.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.