Beware of Used Phone Systems!

Grey Market and Secondary Market Equipment

Grey Marketing Comes with a High Price Tag

The following is from the Nortel article Grey Marketing

At Nortel, grey marketing to the Enterprise is defined as:

"New authentic Nortel products being sold by unauthorized resellers and/or authorized business partners in violation of their distribution agreements, i.e., selling to unauthorized resellers."

When purchasing new authentic Nortel products and/or services, our goal is to ensure that you, the customer, maximize your investment. All too often, unsuspecting customers are enticed by the lower prices grey marketers may offer, only to find out later that their product has been altered, is outdated or manufacturer discontinued, or that the manufacturer warranty is no longer valid.

Warning!Buyer Beware

More importantly, the questionable integrity of grey market equipment undermines the authorized distributor's ability to provide manufacturer services.

The end result is that your "great deal" may leave you without the support you need and may even result in service interruptions that could impact the operations of your business.

Nortel is working on many different initiatives in parallel to make a difference in combating grey marketing to the Enterprise.

One of the most stimulating initiative is Nortel's active participation in Alliance for Grey Market and Counterfeit Abatement*. AGMA is a non-profit organization, whose members' combined annual revenues exceed $296 billion, and with mission to ensure the highest product quality standards, uphold customer satisfaction, protect brand integrity, improve standards for intellectual property enforcement, mitigate the counterfeiting of branded products, and stem the unauthorized flow of goods into the gray market - globally. Since the formation in 2001 (Nortel is one of the founding members), AGMA membership has grown by more than 300% and includes some of the leading trademark owners across the hi-tech industry. AGMA provides a platform for sharing the best mitigation practices the industry can employ to reduce the unauthorized flow of products into the gray market.

Barcode Scanning & Tracking

  • Nortel offers an additional layer of protection to its valued customers and business partners alike.
  • Nortel will not service any Enterprise product that does not have an authentic manufacturer barcode label on the box and the product itself.
  • All products that are returned for warranty and repair reasons will be checked and inspected for authenticity including hologram warranty label where applicable. Nortel will void all warranties on Enterprise products that have been purchased through unauthorized resellers, altered and/or damaged.

We want you to be aware of the pitfalls of dealing with unauthorized resellers and provide you with an awareness and education to assist you in making informed decisions when purchasing Nortel products for the Enterprise.

Secondary Market Enterprise

The focus on reducing spending has, in many cases, led many businesses to sourcing previously used equipment from the secondary market. To generalize, the secondary market deals in equipment that has been previously used.

For customers deciding to buy secondary market equipment, Nortel has put in place secondary market programs, such as the "Certified Remanufacture" Program, to enhance the value of these sales for the reseller, and to ensure the ongoing protection of the buyer in terms of software licensing and warranties. The "Certified Remanufactured" Program provides customers with Nortel branded equipment directly from Nortel and/or Nortel Remarketing Partners - Novus LLC and Precision Communications Systems. End Customers may purchase the "Certified Remanufacture" equipment through any Nortel authorized reseller. Nortel fully supports the secondary market through its "Certified Remanufactured" program. Only the products remarketed through the Nortel "Certified Remanufactured" program deliver the quality our customers deserve and can rely upon.

Be Sure Your Provider is an Authorized Nortel Reseller

Used and refurbished products are also sold on the secondary market, usually by independent (unauthorized) resellers or, in some cases, by Nortel authorized resellers as well. Nortel does not support secondary market equipment outside of the "Certified Remanufacture" Program. Only Nortel and its Remarketing Partners can participate in Certified Remanufacture.

The independent secondary market vendors (ISMV) that deal in previously used and/or refurbished equipment or Nortel authorized reselles that have their own refurbishing operations are responsible for warranties and support of such secondary equipment. Nortel does not consider secondary market equipment sales to be grey marketing unless the resellers misrepresent their affiliation with Nortel concerning the sale of such secondary market equipment, or uses the Nortel logo or trademarks without prior written Nortel authorization.

The capital savings netted through purchases of secondary market equipment other than "Certified Remanufacture" has to be weighed against other risk factors that many people may be unaware of, including:
 

  • Unknown, modified, and potentially untested equipment
  • Potential service and support issues for equipment not under warranty because of equipment sales and transfer of ownership
  • Software licenses that are non-transferable and leave the buyer liable for intellectual property rights infringement
  • Performance issues for equipment not properly tested before installation
  • Securing support through Nortel authorized distribution partners and resellers

More: Purchasing Considerations >