Now that Nortel is one of Canada’s great and unfortunate legacies, Nokia Siemens Networks has come to the rescue and snatched up their LTE and CDMA assets for a cool $650 million (USD). This deal is still subject to the approval of the US Bankruptcy Court and the Ontario Superior Court of Justice because of Nortel’ restructuring process… but all current major customer such as Verizon, Sprint, Bell and TELUS seem to be on board. The deal is looking to officially close Q3 2009.
Read the press release here
“This agreement provides an important strategic opportunity for Nokia Siemens Networks to strengthen its position in two key areas, North America and LTE, at a price that makes good economic sense,” said Simon Beresford-Wylie, Chief Executive Officer of Nokia Siemens Networks. “It also represents stability for Nortel’s existing customers and offers a great opportunity for employees to move into a stable future with an industry winner. The R&D organization in Canada would become a long-term wireless center of excellence within Nokia Siemens Networks, complementing our other global sites.”
“As Nortel’s largest customer in Canada, Bell supports Nokia Siemens’ plan to continue to foster Nortel’s long history of research and development in Canada. Such ongoing technology development is of critical importance as Bell rapidly builds out our advanced next generation wireless networks across Canada,” said Stephen Howe, Senior Vice President of Wireless Networks and Chief Technology Officer, Bell Mobility.
“Bringing these assets of Nortel together with Nokia Siemens Networks is good for customers like TELUS and good for Canada,” said Eros Spadotto, Executive Vice-President, Technology Strategy of TELUS. “As TELUS invests in building a next generation wireless network, we are pleased by Nokia Siemens Networks’ strong desire to maintain a strong R&D presence in Canada, helping keep the country at the forefront of advanced wireless technology.”