Nokia sells off wireless modem business

Renesas Electronics will buy the wireless modem unit for $US200 million

Nokia is selling off its wireless modem business to Renesas Electronics, a move that could help the mobile giant better focus on phone competition and get rid of a business that may have been struggling.

Renesas has agreed to buy the business for $US200 million and will get some Nokia patents as well as 1,100 research and development people. The workers are based in Finland, India, the U.K. and Denmark.

Renesas had been licensing Nokia's modem technology since 2009 and the companies had already been working together on an HSPA+/LTE (High-Speed Packet Access Plus/Long Term Evolution) platform.

As part of the deal, the companies also plan to form a joint research initiative for future radio technologies.

The agreement effectively lets Nokia outsource a component required for its phones that has become increasingly commoditized, wrote Caroline Gabriel, an analyst with Rethink Research, in a note about the announcement.

In addition, while Nokia has been in the lead in coming out with new technology for standalone wireless modems like dongles, other companies have cornered the bulk of that market, she said. Huawei has 53 percent of the global market for standalone wireless modems and ZTE has 30 percent share, according to research from Berg Insight, Gabriel wrote.

The extent to which such companies have cornered the market is evidence in the complaint that Belgium modem maker Option filed last week at the European Commission. Option alleges that Chinese companies are dumping wireless modems into the European Union at unfairly cheap prices.

The agreement could help Renesas Electronics, a company formed earlier this year after the merger of NEC and Renesas Technology, improve its standing among mobile semiconductor makers, Gabriel said. The Nokia technology fills a gap in Renesas' wireless portfolio, offering it the possibility of competing with giants like Qualcomm, she said.

Nokia expects the deal to close in the fourth quarter this year.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags mobileNokiabusiness issuesNetworkingtelecommunicationmodemRenesas Technology

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Nancy Gohring

IDG News Service
Show Comments

Brand Post

Bitdefender 2019

Taking cybersecurity to the highest level and order now for a special discount on the world’s most awarded and trusted cybersecurity. Be aware without a care!

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?