THE WRAP: Nortel mulls bankruptcy, Sony cuts jobs

This week the downsizing continued, with job cuts at Sony and Level 3, while Nortel did some shrinking of its own.

Sony said it would cut 8,000 jobs and close six factories over the next 15 months. Backbone carrier Level 3 let go 450 US staff, or 8% of its workforce. Sun closed a Scottish plant, axing 130 jobs.

Nortel's stock fell 20% after the vendor said it had taken advice on seeking bankruptcy protection. It is now worth $194 million, compared with $250 billion at the peak of the tech boom in 2000.

Yahoo plans to turn its email service into a platform on which to run applications, similar to Facebook's.

The $50 billion Bell Canada buyout collapsed. An auditor's report had warned that the company faced insolvency if the private equity deal went through because of the heavy debt burden.

Ciena reported a 17% slide in quarterly sales, posting a loss of 10 cents per share.

A US government report warned it is "losing" the battle for cyberspace against foreign intelligence agencies.

A US court ordered AT&T and T-Mobile to stop claiming that their mobile voicemail services were secure. Korea decided to allow the sale of foreign phones that don't support the local WIPI platform.

Google's Open Handset Alliance announced 14 new members, including Vodafone and Sony Ericsson. Google's Chrome browser came out of beta. Skype issued two new mobile versions of its VoIP client. Muxlim Pal, a virtual world for Muslims, was launched.

Wal-Mart said it will start selling iPhones by the end of the year - quite possibly for as low as $99. The Egyptian government demanded that Apple disable the iPhone GPS in order to enter the local market.

Chinese researchers accidentally released software that allows hackers to exploit a Microsoft IE vulnerability.

Ericsson and Intel said they would add a locking function to HSDPA chips that would enable lost or stolen laptops to be remotely shut down.

A third of US teenagers had posted nude or semi-nude images of themselves and 39% said they had sent suggestive messages, a survey found.

Researchers from IBM and Harvard began a global grid project, using spare computer cycles to find new solar and energy storage materials. Alcatel-Lucent promoted Asia-Pac COO Sean Dolan to president, replacing the retiring Etienne Fouques. Australia's prime minister and opposition leader engaged in a battle of Twitters.

And an Australian man was found guilty of child pornography charges over images of The Simpsons characters having sex.