8/20/2010 4:50:13 PM
IT Comms news - Nokia Siemens spend $1.2bn on Motorola Networks
As part of Nokia Siemens Networks (NSN) strategy to expand
further into Japan and North America, it is spending $1.2bn on
Motorola's telecom network equipment business. This will give the
organisation a competitive edge in its battle against its fellow
telecommunications giants.
Companies such as NSN and Motorola have struggled to compete
with larger companies in an aggressively competitive mobile kit
market. After the merger Motorola will split its concerns into two;
one focusing on mobile phone and set-top business, the other, which
will include the telecoms network unit, will focus solely on
selling wireless technology to enterprise and public safety
organisations.
ARM's Communications Division has been active in both
the wireless niche and the telecoms kit business for some time.
Telecommunications Consultant David Powell of ARM said,
"It's a smart move by both companies, despite
market analysts expecting this to be a declining market in the
longer term, as separate entities Motorola and NSN were too small
to have any meaningful impact in this space, and both have a lot to
gain in the short to medium term".