It had failed to adapt, disappointed its customers, and was ill-prepared to respond to new Chinese competition.
And there was that hack.
Huawei seized the moment.
Nortel's most valuable asset was the unmatched talent in its Ottawa research lab, known as the Canadian equivalent of the legendary Bell Labs.
For years, Huawei had been building up its research capacity, trying to shed its reputation as a low-cost provider whose tech came from purloining the discoveries of others. It had a number of R&D labs around the world.
Now, with Nortel's demise, it could pursue a bigger prize than market share:
technical mastery. And respect.
The head of research at Nortel's lab in Ottawa, #Wen#Tong, grew up in China and joined Nortel's wireless lab in 1995 after earning a doctorate at Concordia University in Montreal.
He had contributed to every generation of mobile technology and held 470 patents in the US.
If telecommunications companies staged a research scientist draft in 2009, Wen Tong would have been a first-round pick.
Now he was a free agent, and Google, Intel, and others courted him.
Tong picked Huawei. He wanted to keep his networking scientists together, and the team didn't want to leave Canada.
The Chinese company was happy to recruit the group and let them stay in place.
Huawei also promised them freedom to attack the signature challenge for networking science in the 21st century:
creating the infrastructure for #5G.
In this iteration of mobile platforms, billions of mobile devices would seamlessly connect to networks. It promised to transform the world in ways even the scientists could not imagine, and it would mean vast fortunes for those who produced the technology.
The race for #patents would be intense, a matter not only of profit but also national pride.
Not long after Tong joined Huawei, in 2009, a research paper came to his attention.
Tong had helped produce the technology that provided the radio-transmission error correction for the current standard, known as turbo codes.
He thought the polar codes concept could be its replacement in 5G.
But the obstacles were considerable, and Tong originally couldn't interest his Canadian researchers in attacking the problem.
Then, in 2012, Huawei asked Tong to restructure its communications lab in China.
He took the opportunity to assign several smart young engineers to work on polar codes.
It involved the none-too-certain process of taking a mathematical theory and making it actually work in practical design, but they made progress and the team grew.
With each innovation, Huawei rushed to the patent office.
In 2013, Wen Tong asked Huawei's investment board for $600 million for 5G research.
“Very simple,” Tong says. “20 minutes, and they decided.”
The answer was yes, and a good deal of that money went into polar codes.
After Huawei came up with software that implemented the theory, the work shifted to testing and iterating. Eventually hundreds of engineers were involved.
Tong was not the only information scientist who had seen Arıkan's paper. #Alexander#Vardy of the Jacobs School of Engineering at UC San Diego says the paper achieved “something that people were trying to do for 60 years.”
The challenge was that polar codes were not suited for 5G's short blocklengths
—the amount of 0s and 1s strung together.
Vardy and his postdoc, #Ido#Tal of the #Technion-Israel Institute of Technology, modified the error-correcting technology so it outperformed other state-of-the-art codes when applied to 5G's short blocklengths.
Vardy says he presented his findings in a conference in 2011.
“Huawei was there in the audience, and right after that they ran with it,” he says, seemingly without rancor.
(UC San Diego owns Vardy and Tal's patent and has licensed it to Samsung on a nonexclusive basis.)