Nortel Networks Corp, which filed for bankruptcy protection earlier this year, said on Monday its quarterly loss widened as the global recession contributed to a steep drop in revenue. Nortel, North America's biggest maker of telephone equipment, also said it is completing plans to decentralize some functions at each of its four main businesses to give it more flexibility as it decides which divisions to sell. The company lost $507 million, or $1.02 a share, in the three months ended March 31. That compares with a loss of $138 million, or 28 cents a share, a year earlier. Revenue fell 37 percent to $1.73 billion with declines in all segments and regions, the company said. Analysts on average had expected Nortel to post revenue of $2.32 billion, according to Reuters Estimates. The company blamed the drop on the weak economy and its bankruptcy filing, which rattled the confidence of some customers.