January 5, 2001

Alcatel's loss Ottawa's gain

Jill Vardy

Financia Post

There's a members-only Web site for former employees of Newbridge Networks Corp. It lists 492 names, all whom have worked at the telecommunications equipment company under the leadership of the mercurial Terry Matthews.

The Newbridge alumni list has swelled in the past year. At least 100 of Newbridge's skilled workers have left since last February when Alcatel SA bought it.

But Alcatel's loss is a gain for the Ottawa technology scene. Some of those departing Newbridge workers have started their own companies, emulating the company-making passion of their former boss. While Alcatel is filling the gaps in its Kanata, Ont., campus left by these workers, they are out creating more jobs and investment opportunities.

Mr. Matthews was among the first to leave after the Feb. 23 purchase. He went to Newbridge affiliate Telexis Corp. and relaunched it as March Networks Corp.

Other companies started by Newbridge alumni include such hot Ottawa start-ups as Tropic Networks, edgeflow Photonics, DragonWave Inc. and Advantera Communications Inc.

"When you look at the quality of some of these start-ups, there's a lot of promise," said Jeffrey Doyle, partner at technology research and consulting firm Doyletech Corp. Doyletech annually compiles a family tree of Ottawa technology firms and their roots.

Wes Biggs left Alcatel in April to help create edgeflow. He was lured from Alcatel by Sierra Ventures, a California venture capital firm looking to fund a photonics company in Ottawa.

Like many Newbridge alumni, Mr. Biggs decided Ottawa was the best place to build his company. "There is a great opportunity here," he said. "We have a talent pool that's recognized from without that we can draw on."

Some new companies, such as Silicon Access Networks, are based in Ottawa because of the ready pool of former Newbridge staff. "It's really a U.S.-based company with a large Ottawa presence because of the engineering talent from Newbridge. We include it on our list because it wouldn't exist here without the Newbridge people," Mr. Doyle said.

And there are a dozen Ottawa tech firms such as Zenastra Photonics and Akara that have grabbed former Newbridge staff to bolster their ranks and their clout.

Other former Newbridge staff are selling expertise. Venture Coaches is a mentoring firm started last fall by Claude Haw, Larry Perron, Jaswinder Kaur and John Saull, all former executives of Newbridge or its affiliates.

It's not that they hated Alcatel, they say -- it's just they saw the takeover as a chance to create something original.

Erik Boch, a co-founder of DragonWave, said Mr. Matthews fostered the passion for creating companies that's behind this mini-boom of post-Newbridge start-ups. "Terry was the source of a lot of energy. He sponsored a lot of entrepreneurial momentum and gave it a place to grow."

And there may be more to come.