A Good Deal Indeed

Majority Support Nortel Asset Sale to EricssonCanadians Believe Sale is a Good Deal for Canada (83%), Nortel Employees (84%) and Canada’s Technology Sector (82%)

Wednesday, September 09, 2009

Toronto, ON – Weighing in on the debate over the sale of troubled Nortel’s assets to Swedish-based Ericsson and Research in Motion’s subsequent bid to stop the sale, a new Ipsos Reid poll conducted on behalf of Ericsson has revealed that Canadians believe the sale would be a ‘good deal’ for Canada (83%), Nortel employees in Canada (84%) and the future of Canada’s technology sector (82%) when they hear what’s in store under the new ownership.

Canadian high-tech firm Nortel has been in bankruptcy protection since January and it is selling off assets under the court-ordered supervision of accountants Ernst & Young. Its CEO and most of its directors resigned last month. Swedish-based company Ericsson, which has been operating in Canada for 56 years and in the past decade has invested more than $2 billion in research and development in Canada, has purchased a Nortel wireless business, which is based in the US but has some operations in Canada, for $1.13 Billion.

As part of the deal, Ericsson is offering to keep 817 former Nortel employees who work in the wireless operations in Canada with substantively the same pay, benefits and place of work. These employees will join Ericsson's 1900 other Canadian employees, including those working in its top-rated research and development facility in Montreal. The former Nortel researchers will join Ericsson's global research force helping to keep Canada at the forefront of technological development in the telecom sector.

Based on this information, most Canadians believe the transaction would be a ‘good deal’ in each of the following areas:

  • Good for Canada’s ability to attract foreign investment dollars: 88% total (28% very/59% somewhat)
  • Good for Nortel employees in Canada: 84% total (33% very /51% somewhat)
  • Good for employment in Canada: 84% total (30% very/54% somewhat)
  • Good for Canada’s research and development sector: 82% total (28% very/54% somewhat)
  • Good for Canada as a whole: 82% total (27% very/56% somewhat)
  • Good for the future of Canada’s technology sector: 81% total (27% very/55% somewhat)
  • Good for Nortel, the company: 80% total (26% very/54% somewhat)
  • Good for The Government of Canada: 80% total (21% very/59% somewhat)

Conversely, two in ten Canadians thought that this transaction would be a ‘bad deal’ for the Government of Canada (20%, 5% very/15% somewhat), Nortel (20%, 4% strongly/16% somewhat), the future of Canada’s technology sector (19%, 5% very/14% somewhat), Canada as a whole (18%, 4% very/14% somewhat), Canada’s research and development sector (18% 4% very/14% somewhat), Nortel employees in Canada (16%, 4% very/12% somewhat), employment in Canada (16%, 3% very/12% somewhat), or Canada’s ability to attract foreign investment dollars (12%, 2% very/10% somewhat).

These are some of the findings of an Ipsos Reid poll conducted between August 24 and 31, 2009, on behalf of Ericsson. For this survey, a national sample of 1,067 adults from Ipsos' Canadian online panel was interviewed online. Weighting was then employed to balance demographics and ensure that the sample's composition reflects that of the adult population according to Census data and to provide results intended to approximate the sample universe. A survey with an unweighted probability sample of this size and a 100% response rate would have an estimated margin of error of +/-3.1 percentage points 19 times out of 20 of what the results would have been had the entire population of adults in Canada been polled. All sample surveys and polls may be subject to other sources of error, including, but not limited to coverage error, and measurement error.

For more information on this news release, please contact:
John Wright
Senior Vice President
Ipsos Reid
Public Affairs
(416) 324-2002
john.wright@ipsos.com

About Ipsos Reid
Ipsos Reid is Canada's market intelligence leader, the country's leading provider of public opinion research, and research partner for loyalty and forecasting and modelling insights. With operations in eight cities, Ipsos Reid employs more than 600 research professionals and support staff in Canada. The company has the biggest network of telephone call centres in the country, as well as the largest pre-recruited household and online panels. Ipsos Reid's marketing research and public affairs practices offer the premier suite of research vehicles in Canada, all of which provide clients with actionable and relevant information. Staffed with seasoned research consultants with extensive industry-specific backgrounds, Ipsos Reid offers syndicated information or custom solutions across key sectors of the Canadian economy, including consumer packaged goods, financial services, automotive, retail, and technology & telecommunications. Ipsos Reid is an Ipsos company, a leading global survey-based market research group.

To learn more, please visit www.ipsos.ca.

About Ipsos
Ipsos is a leading global survey-based market research company, owned and managed by research professionals. Ipsos helps interpret, simulate, and anticipate the needs and responses of consumers, customers, and citizens around the world.

Member companies assess market potential and interpret market trends. They develop and build brands. They help clients build long-term relationships with their customers. They test advertising and study audience responses to various media. They measure public opinion around the globe.

Ipsos member companies offer expertise in advertising, customer loyalty, marketing, media, and public affairs research, as well as forecasting, modeling, and consulting. Ipsos has a full line of custom, syndicated, omnibus, panel, and online research products and services, guided by industry experts and bolstered by advanced analytics and methodologies. The company was founded in 1975 and has been publicly traded since 1999.

In 2008, Ipsos generated global revenues of €979.3 million ($1.34 billion U.S.).

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A Good Deal Indeed

Contact

John Wright
Senior Vice President, US
Ipsos Public Affairs
+1.416.324.2002
john.wright@ipsos.com