Nokia acquires Nortel Wireless business to widen its US Presence
Telecom equipment maker Nortel Networks said on Friday that it will sell its advanced wireless technology business to Nokia Siemens Networks NSN.UL for US$650 million and that it was making progress in talks to sell its other businesses.
Nortel, once the largest North American maker of telecommunications gear prior to 2000, collapsed into bankruptcy in January, blaming the economic crisis for derailing a turnaround effort that began in 2005.
The deal will allow Nokia Siemens to expand its presence in North America and make it a leading supplier of wireless infrastructure products in the region, it said in a separate statement announcing the deal.
The transaction includes Nortel’s CDMA business and LTE assets. CDMA is the technology that lost the battle for global dominance but still has a strong position in some markets, including North America. Nortel has a roughly 30 percent share of the global CDMA market.
LTE is a new high-speed wireless technology that is intended to replace current mobile networks. LTE networks are slated to be deployed in the coming years by large wireless carriers including Vodafone and Verizon Communications
"This agreement provides an important strategic opportunity for Nokia Siemens Networks to strengthen its position in two key areas, North America and LTE, at a price that makes good economic sense," NSN Chief Executive Simon Beresford-Wylie said in the statement.
[Source Reuter]
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