Acquisition of Motorola Networks by Nokia Siemens Network Delays

By Shekhar Sahu on 02 January 2011 2:54 AM

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The leading global telecommunication service provider Nokia Siemens Network announced the delay in acquisition Motorola's Public Carrier Wireless Network. The delays are due to pending approval from Chinese Authorities.

Back in July 2010, Nokia Siemens Network announced the opening of acquisition of Motorola's public wireless network infrastructure. Which includes Motorola's CDMA, GSM, wideband CDMA, and LTE business. The acquisition was expected to close in the year-end, which is now shifted to the first quarter of 2011.

After Acquisition of Motorola's Assets

With this acquisition of the Nokia Siemens Network [NSN] will increase its presence in Japan and the United States. About 75000 employees will be transferred to NSN along with research and development sites located in the United States, China, and India. Layoffs of employees are hopefully not expected. After the acquisition, Motorola will continue its iDEN network business. Except for some CDMA patents (which go to NSN), Motorola will be holding it's intellectual property rights [IPR] which will be available to Nokia Siemens with cross-license.

"This delay is disappointing, but we're looking forward to completing the acquisition early in the new year," said Rajeev Suri, a chief executive officer of Nokia Siemens Networks. "We are continuing to work closely with the authority in China to finalize the clearance process in that country. We recognize its efforts in addressing this case as a matter of importance."

So this Motorola Acquisition will increase the presence of joint venture of Nokia Corp and Siemens network in Japan and US. What do you think?

Shekhar Sahu

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