Nortel Networks Corporation  is focusing on its existing business, including lifting Asia’s share of its revenues, and takeovers could also help a return to profitability, Chief Executive Mike Zafirovski said on Monday.

Toronto-based Nortel, North America’s biggest maker of telephone equipment, has been cutting costs and trying to boost revenues. Nortel reported a loss of $37 million for its second quarter.

“It will take us three to five  years to recreate that great company,” Mr Zafirovski told reporters in Mumbai.

Emphasis on organic growth

“Most of the emphasis is on organic growth. Still, we are of course talking to people," he said. Zafirovski said earlier this month that Nortel was in talks with potential takeover targets.

Last month, UBS analyst Nikos Theodosopoulos said that 3Com Corp., Sonus Networks and Tellabs could be potential targets for Nortel, but Mr Zafirovski would not be drawn on specifics.

“Most acquisitions fail for two reasons. If you overpay or you do a poor job intergrating. For any acquisition, we are going to ensure that we not going to overpay and we integrate that well,” Mr Zafirovski said.

India share rising

Nortel Asian Operations President  Michael Pangia, said the company aims to raise the region’s share of revenues to 20-25 per cent in the next two to three years from 15 per cent now.

Of that total, India accounts for about three to four per cent of revenue and the share is constantly rising, Mr Zafirovski said.

“With rapid strides taking place in India’s telecommunication industry in particular, it is an exciting time to be in the country,” he added.

Nortel has a five-year contract with Bharti Airtel, to provide contact centre services. It also has other telecom majors Reliance Communications and state-run Bharat Sanchar Nigam as customers.

In addition to wireless equipment, Nortel sells call centre equipment to the outsourcing industry.

Nortel, which has nearly 1,000 employees in India, has outsourcing partnerships with Indian software exporters including Wipro, Infosys and Tata Consultancy.

Nortel India Operations Head Ravi Chauhan said the company was in talks with all major telecoms operators to push WiMax, technology which offers wireless high-speed Internet access, in Asia's third-largest economy.

Mr Chauhan also said the company hoped to make some announcement in coming weeks, but did not give further details.