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EXHIBIT 12
 NORTEL NETWORKS LIMITED  Computation of Ratio of Earnings from Operations to Fixed Charges
 Three
    
    Six
    
    Years ended December 31,(millions of U.S. dollars)
    
    months ended
    
    months ended
    
    2006
    
    2005
    
    2004
    
    2003

    2002June 30, 2007
    
    June 30, 2007
    
    
    
    As restated
    
    As restated
    
    As restated
    
    As restatedEarnings (loss) from operations before income taxes
    
    
    51
    
    
    
    (39
    )
    
    
    19
    
    
    
    (129
    )
    
    
    (174
    )
    
    
    241
     
     
     
    (2,673
    )Add:Minority interest
    
    
    1
    
    
    
    13
    
    
    
    21
    
    
    
    12
    
    
    
    11
    
    
    
    24
    
    
    
    (32
    )Equity in net loss of associated companies
    
    
    (1
    )
    
    
    (1
    )
    
    
    2
    
    
    
    (3
    )
    
    
    
    
    
    
    36

    
    
    17Earnings (loss) from operations
before minority interest, equity in net loss of
associated companies and income taxes
    
    
    51
    
    
    
    (27
    )
    
    
    42
    
    
    
    (120
    )
    
    
    (163
    )
    
    
    301

    
    

    (2,688
    )Add:Fixed charges
    
    
    86
    
    
    
    171
    
    
    
    276
    
    
    
    191
    
    
    
    181
    
    
    
    212

    
    
    350Amortization of capitalized interest
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2
    )

    
    (2
    )Pre-tax
losses of equity investees for which charges arising from guarantees
are included in fixed charges
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    

    
    Interest expense of finance subsidiaries
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    

    
    Unconsolidated subs
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Distributed income from equity investees
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Subtract:Interest capitalized
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    

    
    
    4Preference security dividend requirements
of consolidated subsidiaries without fixed
charges
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    

    
    
    Minority interest in pre-tax of subsidiaries
without fixed charges
    
    
    (1
    )
    
    
    (13
    )
    
    
    (21
    )
    
    
    (12
    )
    
    
    (11
    )
    
    
    (24
    )
    
    
    32Income (loss) as adjusted
    
    
    136
    
    
    
    131
    
    
    
    297
    
    
    
    59
    
    
    
    7
    
    
    
    487
    
    
    
    (2,304
    )Fixed charges:Interest expense Long-term debt
    
    
    64
    
    
    
    128
    
    
    
    187
    
    
    
    124
    
    
    
    108
    
    
    
    95

    
    
    135 Other
    
    
    6
    
    
    
    11
    
    
    
    22
    
    
    
    6
    
    
    
    8
    
    
    
    26

    
    
    55Interest expense of finance subsidiaries
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    

    
    
    Interest
expense of unconsolidated subs
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    

    
    
    Interest
capitalized
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    

    
    41/3 of rental expense on operating leases
deemed to be representative of interest
expense
    
    
    14
    
    
    
    28
    
    
    
    65
    
    
    
    58
    
    
    
    59
    
    
    
    86

    
    
    155Preference security dividend requirements of
consolidated subsidiaries
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    

    
    
    Amortized premiums, discounts and
capitalized expenses related to
indebtedness
    
    
    2
    
    
    
    4
    
    
    
    2
    
    
    
    3
    
    
    
    6
    
    
    
    5

    
    
    186
    
    
    
    171
    
    
    
    276
    
    
    
    191
    
    
    
    181
    
    
    
    212

    
    
    350Ratio of earnings from operations
to fixed charges
    
    
    1.6
    
    
    
    *
    
    
    
    1.1
    
    
    
    *
    
    
    
    *
    
    
    
    2.3

    
    
    *
 *
    
    The earnings of Nortel Networks Limited were inadequate to cover fixed charges for the six months
ended June 30, 2007 by $40 and for the
years ended December 31, 2005, 2004 and 2002, by $132, $174 and
$2,654, respectively.