In a move to gain a greater presence in North America, Nokia Siemens Networks is purchasing the CDMA and Long Term Evolution (LTE) assets of Nortel Networks for a proposed purchase price of $650 million. (For the initial announcement, click here.) Nortel, a Canadian telecom equipment maker, declared bankruptcy in January.

By purchasing Nortel’s CDMA and LTE mobile technologies, NSN is staking its claim in North America’s wireless future.

In a media call Monday, NSN’s CEO Simon Beresford-Wylie said: "This acquisition is not predicated on the need to find synergies. We (NSN) do not have a CDMA business. We plan to keep Canada absolutely at the heart of wireless research."

But CDMA may be just a stepping-stone to the real prize: North America’s LTE market.

CDMA is profitable, "but is a declining market," said Beresford-Wylie. "The attractiveness is that it’s a profitable business, but along with it comes a tremendous customer base … that we will use as a springboard to grow in LTE."

Verizon Wireless is leading the charge for LTE in the United States and did not choose NSN as one of its primary equipment providers. (For more, click here and here.) Nevertheless, Beresford-Wylie said NSN does work with Verizon on IP Multimedia Subsystem (IMS) technology and remains hopeful that it will work with Verizon on LTE access deployment.

But NSN will get a jump on LTE deployments with its Japanese customer NTT-DOCOMO. Beresford-Wylie said the Japanese operator is "the company that is likely to be first with LTE." (For more, click here.)

If the Nortel asset acquisition passes all regulatory hurdles, the deal is expected to close in third quarter 2009.

– Linda Hardesty

The Daily

Subscribe

SCOTUS Takes a Bite Out of FTC

The US Supreme Court unanimously ruled Thursday that Section 13(b) of the Federal Trade Commission Act doesn’t grants the FTC the authority to obtain monetary awards on behalf of defrauded consumers. Payday

Read the Full Issue
The Skinny is delivered on Tuesday and focuses on the cable profession. You'll stay in the know on the headlines, topics and special issues you value most. Sign Up

Calendar

Apr 30
Top Ops – 2021 Nominations Nominations Due: April 30, 2021
Jun 10
The FAXIES Awards – Virtual CelebrationSave the Date! - June 10, 2021
Jul 16
Diversity List – 2021 Nominations Due: July 16, 2021
Sep 10
Most Powerful Women – 2021 Nominations Due: Sept 10, 2021
Dec 7
Most Powerful Women CelebrationSave the Date!
Full Calendar

Jobs

Seeking an INDUSTRY JOB?
VIEW JOBS

Hiring? In conjunction with our sister brand, Cynopsis, we are offering hiring managers a deep pool of media-savvy, skilled candidates at a range of experience levels and sectors, The result will be an even more robust industry job board, to help both employers and job seekers.

Contact John@cynopsis.com for more information.