-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
 WgTlXXnK4tW0o/neGTZXuEt2l4JulBHG6+AzRl9dvFV8sPerXg/yIcoY0jOs7qHR
 NcdC1/Y9TJVjlmSLtUdtVA==

<SEC-DOCUMENT>0000903423-05-000771.txt : 20051004
<SEC-HEADER>0000903423-05-000771.hdr.sgml : 20051004
<ACCEPTANCE-DATETIME>20051004184001
ACCESSION NUMBER:		0000903423-05-000771
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20050930
FILED AS OF DATE:		20051004
DATE AS OF CHANGE:		20051004

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			NORTEL NETWORKS CORP
		CENTRAL INDEX KEY:			0000072911
		STANDARD INDUSTRIAL CLASSIFICATION:	TELEPHONE & TELEGRAPH APPARATUS [3661]
		IRS NUMBER:				621262580
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		ATTN: CORPORATE SECRETARY
		STREET 2:		8200 DIXIE ROAD, SUITE 100
		CITY:			BRAMPTON
		STATE:			A6
		ZIP:			L6T 5P6
		BUSINESS PHONE:		9058630000

	MAIL ADDRESS:	
		STREET 1:		ATTN: CORPORATE SECRETARY
		STREET 2:		8200 DIXIE ROAD, SUITE 100
		CITY:			BRAMPTON
		STATE:			A6
		ZIP:			L6T 5P6

	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:			Osborne Ronald W
		CENTRAL INDEX KEY:			0001291245

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-07260
		FILM NUMBER:		051123159

	BUSINESS ADDRESS:	
		BUSINESS PHONE:		800-343-2829

	MAIL ADDRESS:	
		STREET 1:		C/O MFS INVESTMENT MANAGEMENT
		STREET 2:		500 BOYLSTON STREET
		CITY:			BOSTON
		STATE:			MA
		ZIP:			02116
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>osborne-f4_1005ex.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2005-09-30</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

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

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001291245</rptOwnerCik>
            <rptOwnerName>Osborne Ronald W</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O NORTEL NETWORKS CORP</rptOwnerStreet1>
            <rptOwnerStreet2>8200 DIXIE ROAD, SUITE 100</rptOwnerStreet2>
            <rptOwnerCity>BRAMPTON</rptOwnerCity>
            <rptOwnerState>A6</rptOwnerState>
            <rptOwnerZipCode>L6T 5P6</rptOwnerZipCode>
            <rptOwnerStateDescription>ONTARIO, CANADA</rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Share Units</value>
                <footnoteId id="F1"/>
            </securityTitle>
            <conversionOrExercisePrice>
                <footnoteId id="F1"/>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2005-09-30</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>479.9524</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>3.25</value>
                    <footnoteId id="F2"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <footnoteId id="F1"/>
            </exerciseDate>
            <expirationDate>
                <footnoteId id="F1"/>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Shares</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>479.9524</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>479.9524</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
        <derivativeTransaction>
            <securityTitle>
                <value>Share Units</value>
                <footnoteId id="F3"/>
            </securityTitle>
            <conversionOrExercisePrice>
                <footnoteId id="F3"/>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2005-09-30</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>11038.8968</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>3.25</value>
                    <footnoteId id="F2"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <footnoteId id="F3"/>
            </exerciseDate>
            <expirationDate>
                <footnoteId id="F3"/>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Shares</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>11038.8968</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>11038.8968</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">Share units issued under the Nortel Networks Corporation Directors' Deferred Share Compensation Plan (the &quot;NNCDDSCP&quot;).
 Pursuant to the NNCDDSCP, certain fees payable to Nortel Networks Corporation (&quot;NNC&quot;) directors are paid in the form of NNC
 share units, based upon the market price of NNC common shares at the time such NNC share units are credited to the
 director's account under the NNCDDSCP. On the earliest date when a director ceases to be both (i) a member of the board of
 directors of NNC and (ii) employed by NNC or its subsidiaries, NNC will cause to be purchased on the open market, for
 delivery to the director, a number of NNC common shares equal to the number of NNC share units credited to the director's
 account under the NNCDDSCP.</footnote>
        <footnote id="F2">Represents the price of the share unit of $3.78 Cdn. as converted into U.S. dollars using the noon rate of exchange of the
 Bank of Canada on the transaction date.</footnote>
        <footnote id="F3">Share units issued under the Nortel Networks Limited Directors' Deferred Share Compensation Plan (the &quot;NNLDDSCP&quot;). Pursuant
 to the NNLDDSCP, certain fees payable to Nortel Networks Limited (&quot;NNL&quot;) directors are paid in the form of NNL share units,
 based upon the market price of NNC common shares at the time such NNL share units are credited to the director's account
 under the NNLDDSCP. On the earliest date when a director ceases to be both (i) a member of the board of directors of NNL and
 (ii) employed by NNL or its subsidiaries, NNL will cause to be purchased on the open market, for delivery to the director, a
 number of NNC common shares equal to the number of NNL share units credited to the director's account under the NNLDDSCP.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>Walter Wagnleithner, Attorney for Ronald W Osborne</signatureName>
        <signatureDate>2005-10-04</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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