Alcatel gets Nortel's UMTS

Nortel has announced it is selling its UMTS radio access business to Alcatel for US$320 million, making the French vendor one of the largest suppliers of UMTS gear worldwide.

  • E-Mail
By  Alex Ritman Published  September 5, 2006

Nortel has announced that it has signed an agreement with Alcatel to sell its UMTS radio access business to the French vendor for US$320 million. The deal will see Alcatel take 14 of Nortel customer contracts and so make it one of the largest suppliers of UMTS gear worldwide. Once the agreement is complete, Alcatel will have contracts with one in four UMTS operators. Having signed a non-binding agreement to merge the companies hope to close the deal by the end of the year, with a “significant majority” of Nortel’s employees in the UMTS business moving to Alcatel. The deal follows several partnerships in this area, with Nokia and Siemens announcing in June that they would merge their telecommunications infrastructure operations. Motorola and Huawei also announced that they were establishing a joint research lab for 3G. According to Nortel, the sale will allow the Canada-based company to sharpen its business. “Our UMTS access business lacks the scale and momentum needed to become profitable,” says Mike Zafirovski, the company’s president and CEO. Nortel says it will continue to develop GSM and other mobile technologies, as it focuses it attention on emerging 4G mobile video and multimedia services.

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code