Nokia Siemens buys Motorola wireless network unit for $1.2B

Motorola still wants to sell its cellphone and set-top-box businesses

Motorola has found a buyer for its wireless network equipment unit: Nokia Siemens Networks will pay US$1.2 billion for most of that business, the companies announced Monday.

The acquisition will bring Nokia Siemens around 50 new customers. The two wireless infrastructure vendors have few customers in common, although those they do are large ones such as China Mobile, Vodafone, Verizon Wireless, Sprint and Clearwire.

Motorola is hanging on to its wireless patent portfolio and to its iDEN trunked wireless system, used by U.S. operator Sprint Nextel, among others.

However, Nokia Siemens will acquire manufacturing operations for all the major wireless systems, including GSM (Global System for Mobile Communications), CDMA (Code-Division Multiple Access), WCDMA (Wideband Code-Division Multiple Access), WiMax and LTE (Long-Term Evolution).

Motorola was a rarity in the mobile phone business, producing both handsets and network infrastructure. Most of the other big players have already split their operations. Ericsson retained its network business but formed a joint venture with Sony to make phones; Alcatel sold its handset manufacturing operations (although it still sells those handsets under its own brand in France), and Siemens got out of both businesses, selling its mobile phone subsidiary and pooling its infrastructure business with Nokia to form Nokia Siemens Networks, the company buying Motorola's infrastructure activities.

Around 7,500 Motorola employees will join Nokia Siemens Networks when the deal closes, the companies said. They expect this to happen by year-end, if they get the necessary regulatory approvals.

Motorola isn't done with its break-up yet. As a first step to a sell-off, it has created a subsidiary called Motorola Mobility to handle its mobile phone unit and home networking business, which makes set-top boxes.

Peter Sayer covers open source software, European intellectual property legislation and general technology breaking news for IDG News Service. Send comments and news tips to Peter at peter_sayer@idg.com.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags business issuesMotorolatelecommunicationmergers & acquisitionsNokia Siemens NetworksNetworkingwirelessmobile

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

Peter Sayer

IDG News Service
Show Comments

Cool Tech

Breitling Superocean Heritage Chronographe 44

Learn more >

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?