Nokia Siemens sells fixed broadband to Adtran
- — 13 December, 2011 00:34
Nokia Siemens Networks is selling its fixed-line broadband access business to Adtran, the latest in a series of sell-offs, the company said on Monday.
Up to 400 engineering, R&D, sales and professional services staff are expected to transfer to Adtran as part of the deal, financial details of which were not disclosed.
Nokia Siemens' portfolio includes DSL and GPON (Gigabit passive optical networking) products. The agreement also includes provisions for Adtran's products to be included in Nokia Siemens' offerings.
By acquiring the Nokia Siemens unit Adtran aims to grow its business outside the U.S., which today represents only 10.6 percent of its revenue, according to Gary Bolton, Adtrans vice president of global marketing.
The deal is expected to close by the end of April 2012, the companies said.
Total spending on broadband aggregation equipment jumped 12 percent to US$2.1 billion during the second quarter, according to Infonetics Research. The GPON market is especially hot, and grew 56 percent in Europe, the Middle East and Africa.
This is the second unit Nokia Siemens has sold since it announced a massive restructuring plan less than three weeks ago: the other was its WiMax business. It also sold its microwave transport products in November, before the plan was divulged.
Nokia Siemens' restructuring plan calls for the company to cut 17,000 jobs worldwide, as it aims to cut €1 billion (US$1.3 billion) in annual costs by the end of 2013. The company will focus on mobile broadband and related services. Other areas like its wireline business will be sold, Nokia Siemens said at the time.
While Nokia Siemens is shedding units, Adtran is doing the opposite. In August, the company also acquired Wi-Fi vendor Bluesocket, which Nokia Siemens' staff will help sell once the deal is approved.
Send news tips and comments to email@example.com