NORTEL NETWORKS CORP
EX-10.79
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;10.79
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><u><B>CONFIDENTIAL-SPECIAL HANDLING</B></u>
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">October&nbsp;4, 2007

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">To: David Drinkwater

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">From Mike Zafirovski

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Subject: Special Bonus

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Dear David:

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In
recognition of your appointment as Chief Financial Officer for the
period from May&nbsp;1, 2007 through November&nbsp;11, 2007, I am pleased to inform you that
the Compensation and Human Resources Committee has approved a special bonus of
CDN$100,000 for you.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This bonus
will be paid to you in the first quarter of 2008 at the same time as the bonus payment under
Nortel Networks Limited Annual Incentive Plan (AIP&nbsp;Plan). If no 2007 bonus payment is made under
the AIP Plan, this bonus will be paid on or before March&nbsp;28, 2008.
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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">I want to personally thank you for your continued leadership to both the Finance and
Legal organizations.
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    <TD colspan="3" align="left">Sincerely,<BR><BR>
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    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/ Mike Zafirovski
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    <TD colspan="3" align="left">Mike Zafirovski&nbsp;</TD>
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    <TD colspan="3" align="left">President and Chief Executive Officer&nbsp;</TD>
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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>
Mike Zafirovski<BR>
President and Chief Executive Officer<BR>
Nortel<BR>
195 The West Mall, Toronto, ON M9C 5K1 T 905-863-1101
mikez@nortel.com</B>
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