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 This material may not be published, broadcast, rewritten or redistributed.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: Facebook CEO wants more students to explore tech

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

Alibaba prices IPO at $68 per share

8 hours ago

Alibaba, the Chinese e-commerce powerhouse named after a fabled, poor woodsman who discovers a thieves' den full of treasures, is ready to strike it rich on the New York Stock Exchange.

Larry Ellison releases helm of mighty Oracle ship

11 hours ago

Tycoon yachtsman Larry Ellison on Thursday stepped down as Oracle's chief executive, trusting a pair of lieutenants to steer the titanic business software firm he helped launch decades ago.

Alibaba's plan: Today, China. Tomorrow, the world.

15 hours ago

Amazon and eBay should watch their backs. As Chinese e-commerce powerhouse Alibaba readies what could be the biggest initial public offering ever on the New York Stock Exchange, it is quietly hinting at plans ...

User comments : 0