European equipment vendor Nokia Siemens Network has the advantage in talks to take over the networks division of US rival Motorola, according to the Financial Times. China’s Huawei is also in the running.
Nokia Siemens Networks is looking to strengthen…
European equipment vendor Nokia Siemens Network has the advantage in talks to take over the networks division of US rival Motorola, according to the Financial Times. China’s Huawei is also in the running.
Nokia Siemens Networks is looking to strengthen its network infrastructure business through acquisition. Last year it unsuccessfully attempted to buy part of Nortel, after the Canadian telecoms equipment maker filed for bankruptcy protection. The Nortel business, along with its contracts to supply US giants Verizon and Sprint Nextel, eventually passed to Swedens Ericsson.
Nokia Siemens Networks is a joint venture between Nokia of Finland and Siemens of Germany. It reported sales of 12.6bn (US$16.1bn) last year, down 18% compared with 2008, and an operating loss of 1.6bn (US$2.1bn), partly because of an impairment charge.
Motorola has lucrative contracts with Sprint Nextel and China Mobile, the leading Chinese mobile operator. It also has an agreement with KDDI, Japans second-largest mobile operator, to provide network infrastructure based on the 4G wireless technology LTE. Geographically and technically, these are areas that both Nokia and Siemens want to increase their exposure to.
Motorola is planning a group demerger that will result in separate stock market listings for its handset and infrastructure businesses early next year. Greg Brown, co-CEO of Motorola, will manage the spin-off that makes Motorola’s network infrastructure and mobile radio products for the emergency services. Brown wants to retain the mobile radio equipment unit, but is willing to consider bids for the infrastructure business.
Motorola, Nokia and Siemens and Huawei have all declined to comment.
