The Company that Broke Canada

2,351,602
1,400
Published 2023-11-04
For a brief moment, Nortel Networks was on top of the world. Let's enjoy that moment while we can. Part 1 of 2.

Get Nebula using my link for 40% off an annual subscription: go.nebula.tv/bobbybroccoli
Watch part 2 extra early: nebula.tv/videos/bobbybroccoli-sinking-in-scandal-…

Part 2:    • Sinking in Scandal: A Canadian Tragedy  

I'm on sites! :
twitter.com/bobbybroccole
www.patreon.com/bobbybroccoli

People to thank:
Subtitles provided by @redslendy
Charlie Arsenault – Assistant Editor
@ThePlainBagel on Youtube for providing me with Nortel’s stock price data
@ChrisHanel on Youtube for extensive Blender Geometry Nodes assistance
@hotcyder on Youtube for the thumbnail

Additional imagery licensed from Getty.
Music from the Youtube Audio Library and Epidemic Sound.
Additional music from @REPULSIVE and @WhitebatAudio
3D boat models are Royalty free assets:
www.cgtrader.com/free-3d-models/watercraft/industr…
cults3d.com/en/3d-model/game/ss-edmund-fitzgerald-…
www.cgtrader.com/free-3d-models/watercraft/recreat…
www.cgtrader.com/free-3d-print-models/miniatures/v…

A note on interviews: I spoke to over a dozen former Nortel employees for this series and those conversations provided many insights you'll hear throughout. Because some of the interviewees still work in the industry I have kept all names anonymous. If there is a direct quote with a name attached it's because it was a quote said publicly.

Sources:
The Bubble and the Bear – How Nortel Burst the Canadian Dream by Douglas Hunter (2002)
Nortel Networks – How Innovation Created a Network Giant by Larry MacDonald (2000)
No Fear: Tales of a Change Agent or Why I couldn’t Fix Nortel Networks by Tim Dempsey (2014)
Silicon Valley North: A High Tech Cluster of Innovation and Entrepreneurship edited by Larisa V. Shavina (2004)
Knights of the New Technology by David Thomas (1983)
Adventures in Innovation: Inside the Rise and Fall of Nortel by John F. Tyson (2014)
The Master Switch: The Rise and Fall of Information Empires by Tim Wu (2011)
100 Days: The Rush to Judgement That Killed Nortel by James Bagnall (2013)
For $ale to the Highest Bidder: Telecom Policy in Canada edited by Marita Moll and Leslie Regan Shade (2008)
The Invisible Empire: A History of the Telecommunications Industry in Canada, 1846-1956 by Jean-Guy Rens (2001)
The Avro Arrow: For the Record by Palmiro Campagna (2019)
The Deal of the Century: The Breakup of AT&T by Steve Coll (1986)
Asleep at the Switch: The Political Economy of Federal Research and Development Policy since 1960 by Bruce Smardon (2014)
Canadian Science, Technology and Innovation Policy by G. Bruce Doern, David Castle and Peter W.B. Phillips (2016)
Reconcilable Differences: A History of Canada-US Relations by Stephen Azzi (2015)
Pa Bell: The Meteoric Rise of Bell Canada Enterprises by Lawrence Surtees (1992)
Random Excess: The Wild Ride of Michael Cowpland and Corel by Ross Laver (1998)
Dot.con: How America Lost its Mind and Money in the Internet Era by John Cassidy (2002)
TV Interview with John Roth on Market Watch on CNBC, October 1999
Royal Canadian Air Farce Episode from February 23rd 2001
The Rise and demise of Lucent Technologies by William Lazonick and Edward March (2010)
Brain Drain: Why do some post-secondary Graduates Choose to Work in the United States? By Brahim Bordarbat and Marie Connolly (2013)
An Overview of the Demise of Nortel Networks and Key Lessons Learned: Systemic effects in environment, resilience and black-cloud formation, University of Ottawa (2014)
Class, Nationality and the Roots of the Branch Plant Economy by Gordon Laxer (1986)
Foreign Ownership and Myths about Canadian Development by Gordon Laxer (1985)
Gale of “Creative Destruction” Engulfs Nortel by Sanjeev Kumar Sharma (2011)
Nortel Technology Lens: Analysis and Observations by Peter MacKinnon, Peter Chapman, Hussein Mouftah, University of Ottawa (2015)
Capital Gains Taxation in Canada 1972-2017: Evolution in a Federal Setting by Francois Vaillancourt and Anna Kerkhoff (2019)
The 2010 Federal Budget – A summary of the key tax measure that have a direct impact on you – RBC Wealth Management Services, March 4th, 2010
The Changing Structure of American Innovation: Some Cautionary Remarks for Economic Growth by Ashish Arora, Sharon Belenzon, Andrea Patacconi, and Jungkyu Suh (2019)
Do Tax Differences Cause the Brain Drain? By Don Wagner (2000)
The Branch Plant Economy by Stephen Clarkson (1972)

0:00 This is John Roth
2:04 The Elephant and the Mouse
12:47 Pa without Ma
26:27 Made in Amerada
42:15 Right Turns are Hard
57:43 Silicon Valley North
1:07:37 The Toronto Stock Explosion

All Comments (21)
  • @dylan8443
    Time to watch a documentary on a company that I've never heard of, committing a crime I've never heard of. Thanks bobby.
  • "We make... fucking money." That is such an amazing line to end this video on. The lack of swears up until that point and not expecting it from you make it so much more impactful.
  • @bobw5970
    I worked for Nortel in Ottawa for many years until the downfall caught up to me in 2003 and I lost everything. Your video brought tears to my eyes as I relived all of those events you describe, and all of the great times while there. It is still so hard to believe that such a great great company was reduced to nothing and so many people suffered because of it. Looking forward to Part 2.
  • @invictusvis4814
    I feel that the captions on this are going to be massively underrated. The dial tone alone puts this above and beyond nearly everything else on the platform. Add to that the use of colours and placement on the arguments makes this an incredibly clear video.
  • @TamDNB
    The style of BobbyBroccoli documentaries is just perfect...the maps, the calendars, the voice-over...just amazing
  • @jiasheng
    Learned of this company when a scholarship with their name on it went to me when I went to university to study engineering. Thanks, Nortel, the money went into gambling almost immediately.
  • @theseanwardshow
    This was phenomenal. This might as well have been a Netflix special, it was that high quality.
  • @Wrockyy
    I worked for BNR/Nortel starting in the early 90's and it really was an awesome place to work. Our division was sold off around 2001 and although we were pretty bitter about it, thinking we got the shaft and that Nortel would rebound, but being sold off was the best thing that happened to my career and pension. There is so much history in this video that I was completely unaware of, even though I worked for the company. Thank-You.
  • @alexbrangan2885
    "BNR was respected, sure, but Bell Labs had six Nobel Prizes, and their latest hotshot physicist was bound to win them another." Surely this physicist's miraculous work with organic transistors is totally above board. Nothing can possibly go wrong.
  • I was at university studying in civil engineering while Nortel fell... Half of the electric engineering department lost their internships in one day, it was a total panic - some had to finish their "intership" as janitors at the university in order to get their credits...
  • @VIIx22
    He just gave a almost complete Canadian history condensed into one company. Bravo sir.
  • I am in IT. In 2003 my company built a new HQ in Detroit. I was the one who benchmarked all the enterprise ethernet gear. I learned a lot about the various players but found the people working for Nortel and the tech features and management software to be clearly the best and so we went with the 8600 ethernet chassis switches. I think we ended up with 34 of them. The guys doing the phones also selected Nortel. It was great to actually have a single vendor for all of our comm gear. We came from a mixed environment. It was sad for me to see Nortel fall. RIP
  • @mattbosley3531
    My mother worked for Nortel for many years in the U.S. After she retired was when the company fell apart and they tried to stiff their retirees on their medical benefits. Fortunately they got together as a group and took Nortel to court over it and managed to get a decent settlement. At least she had her retirement money in her 401k and Social Security.
  • @briannyob7799
    I worked at Nortel, and I recall the email from John Roth gloating about how Cisco missed its earnings numbers. He how this wouldn't happen at Nortel as we made a much more diverse business. Two weeks later, Nortel missed its earnings numbers. Wished I'd saved the email...
  • @krysc2009
    Nortel was a beast. To this day their PBX's are still running in a lot of offices. If you're in the telecom industry today, you either work with or have worked with min 1 former nortel employee. If you have a large enough family from the Ottawa region, you're almost guaranteed to have a relative somewhere that worked for them.
  • @black_squall
    My Dad was a manager at Nortel for years and we were almost ruined when the company crashed. I am pretty sure my dad had stock options and most of our wealth was in that stock.
  • @salamander405
    As a Canadian gen Z, it’s amazing that absolutely none of this made it into any social studies class even though all of this happened at the very same time as every other event in Canadian history and had such a big effect on all of it, from the time of John A. MacDonald to the last few decades
  • My neighbour had 5000 shares of Nortel when it was worth over $120 a share! He worked at Nortel for decades as a salesman. He stubbornly would not sell the shares even when the writing was on the wall. By the time the bottom fell out of Nortel his shares were worth 60 cents each.
  • @gilramsey3518
    This is very, very well done. As a former Northern Telecom employee, thanks so much for creating this documentary. I left in the early '90s but kept in touch with my co-workers and it was sad to see Nortel implode like it did.