-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
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<SEC-DOCUMENT>0000903423-08-000496.txt : 20080618
<SEC-HEADER>0000903423-08-000496.hdr.sgml : 20080618
<ACCEPTANCE-DATETIME>20080618143255
ACCESSION NUMBER:		0000903423-08-000496
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20080617
FILED AS OF DATE:		20080618
DATE AS OF CHANGE:		20080618

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			NORTEL NETWORKS CORP
		CENTRAL INDEX KEY:			0000072911
		STANDARD INDUSTRIAL CLASSIFICATION:	TELEPHONE & TELEGRAPH APPARATUS [3661]
		IRS NUMBER:				980535482
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		ATTN: CORPORATE SECRETARY
		STREET 2:		195 THE WEST MALL
		CITY:			TORONTO
		STATE:			A6
		ZIP:			M9C 5K1
		BUSINESS PHONE:		9058637000

	MAIL ADDRESS:	
		STREET 1:		ATTN: CORPORATE SECRETARY
		STREET 2:		195 THE WEST MALL
		CITY:			TORONTO
		STATE:			A6
		ZIP:			M9C 5K1

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	NORTHERN TELECOM LTD
		DATE OF NAME CHANGE:	19940831

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	NORTHERN ELECTRIC CO LTD
		DATE OF NAME CHANGE:	19760324

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			CAREY DENNIS J
		CENTRAL INDEX KEY:			0001208313

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-07260
		FILM NUMBER:		08905445

	MAIL ADDRESS:	
		STREET 1:		1303 E ALGONQUIN RD
		CITY:			SCHAUMBURG
		STATE:			IL
		ZIP:			60196
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>carey-f4_0619ex.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2008-06-17</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000072911</issuerCik>
        <issuerName>NORTEL NETWORKS CORP</issuerName>
        <issuerTradingSymbol>NT</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001208313</rptOwnerCik>
            <rptOwnerName>CAREY DENNIS J</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O NORTEL NETWORKS CORPORATION</rptOwnerStreet1>
            <rptOwnerStreet2>195 THE WEST MALL</rptOwnerStreet2>
            <rptOwnerCity>TORONTO, ONTARIO</rptOwnerCity>
            <rptOwnerState></rptOwnerState>
            <rptOwnerZipCode>M9C 5K1</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>(1) See Remarks</officerTitle>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeHolding>
            <securityTitle>
                <value>Common Shares</value>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>28650</value>
                    <footnoteId id="F1"/>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
        <nonDerivativeTransaction>
            <securityTitle>
                <value>Common Shares</value>
            </securityTitle>
            <transactionDate>
                <value>2008-06-17</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>S</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>9964</value>
                    <footnoteId id="F6"/>
                </transactionShares>
                <transactionPricePerShare>
                    <value>10.09</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>D</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>47986</value>
                    <footnoteId id="F2"/>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeTransaction>
        <nonDerivativeHolding>
            <securityTitle>
                <value>Common Shares</value>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>22377.22</value>
                    <footnoteId id="F3"/>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
    </nonDerivativeTable>

    <derivativeTable>
        <derivativeHolding>
            <securityTitle>
                <value>03/03/2008 Grant of Options</value>
                <footnoteId id="F4"/>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>8.31</value>
            </conversionOrExercisePrice>
            <exerciseDate>
                <footnoteId id="F5"/>
            </exerciseDate>
            <expirationDate>
                <value>2018-03-02</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Shares</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>114700</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>114700</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeHolding>
        <derivativeHolding>
            <securityTitle>
                <value>03/21/2007 Grant of Options</value>
                <footnoteId id="F4"/>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>25.82</value>
            </conversionOrExercisePrice>
            <exerciseDate>
                <footnoteId id="F5"/>
            </exerciseDate>
            <expirationDate>
                <value>2017-03-20</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Shares</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>50000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>50000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeHolding>
        <derivativeHolding>
            <securityTitle>
                <value>06/14/2006 Grant of Options</value>
                <footnoteId id="F4"/>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>21.2</value>
            </conversionOrExercisePrice>
            <exerciseDate>
                <footnoteId id="F5"/>
            </exerciseDate>
            <expirationDate>
                <value>2016-06-13</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Shares</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>25000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>25000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeHolding>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">Restricted stock units awarded pursuant to the Nortel 2005 Stock Incentive Plan that vest in three equal annual installments
 beginning on March 3, 2009 and are settled in Nortel Networks Corporation common shares upon vesting, net of tax
 withholding.</footnote>
        <footnote id="F2">Restricted stock units awarded pursuant to the Nortel 2005 Stock Incentive Plan  as part of a grant of 67,500 restricted
 stock units that vest in three equal annual installments beginning on June 14, 2007 and are settled in Nortel Networks
 Corporation common shares upon vesting.</footnote>
        <footnote id="F3">Restricted stock units awarded pursuant to the Nortel 2005 Stock Incentive Plan as part of a grant of 25,000 restricted stock
 units  that vest in three equal annual installments
beginning on March 21, 2008 and are settled in Nortel Networks Corporation common shares upon vesting.</footnote>
        <footnote id="F4">The reported options were granted pursuant to the Nortel 2005 Stock Incentive Plan.</footnote>
        <footnote id="F5">The reported options vest in four equal annual installments beginning on the first anniversary of the date of grant.</footnote>
        <footnote id="F6">Mandatory and automatic open market bulk sale of common shares to pay applicable withholding taxes and any administrative
 fees upon the vesting of restricted stock units.</footnote>
    </footnotes>

    <remarks>(1) Executive Vice-President, Corporate Operations</remarks>

    <ownerSignature>
        <signatureName>T.S.J. Connelly McGilley, Attorney for Dennis J. Carey</signatureName>
        <signatureDate>2008-06-18</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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