Matt Desch

The Pragmatist

Matt Desch is in hibernation. In a manner of speaking.

“I am one of those people who, in some ways, decided to sit the year out,” says Desch. Some might take issue with how Desch defines sitting it out: He is the non-executive chairman of Airspan Networks, he sits on the boards of several other telecom companies and he is active in the venture capital community.

What Desch has decided to forego — for now — are executive posts like the ones he held at Nortel Networks from 1987 to 2000, including stints as corporate executive vice president, and as president of Nortel's wireless networks and global service provider solutions businesses.

“When I left Nortel for my reasons, I didn't like the way things looked,” Desch says. “It was difficult to see how I could increase shareholder value last March.”

Desch has used the time since then for observation of the industry and the economy, even as he has applied his experience to entities such as Airspan, a start-up developer of so-called wireless DSL technology.

“I've learned a ton,” Desch says. “You learn a lot more when things are tough than when things are going well.”

What he learned is that experienced management, capital backing from reputable sources and the ability to demonstrate profitability are the most crucial elements of any early-stage company. “There were a lot of managers who lost sight of the fact that profit and the bottom line are absolutely critical,” Desch says. “This past year has been focused on the basic structure of the business model and whether it makes sense.”

Another thing the current economy has taught Desch is patience, both about the cyclical nature of the economy and about demand for broadband technologies and applications. But his own patience for staying out of the executive hotseat is beginning to wear thin.

“I've enjoyed the advisory role, but it won't be acceptable to me long term,” he says. “I'm programmed since birth to lead organizations and find value in myself.”

Desch won't speculate about where he might end up, other than to say it's not likely to be at the helm of a start-up.

“When I joined Airspan I said I wanted to talk to my marketing communications department, and they said he was on vacation,” he says. “There's more potential for a guy like me in established companies.”