Handset vendors buy in expertise

Motorola wants digital crown from Nokia

Motorola is to buy Lucent Technologies’ handset development unit in an attempt to boost flagging digital phone sales. The deal will see Lucent's consumer wireless phone operations go for an estimated $200 million, according to reports in today’s Wall Street Journal Europe. Motorola will hope to put Lucent’s technology to good use in the digital mobile phone market. It has so far dominated the analogue market, but has recently been outpaced by Nokia in digital phone sales. The move was described by James Parmlee, analyst with Credit Suisse First Boston, as "a win for Lucent and for Motorola". The buyout follows hard on the heels of Nokia’s purchase of voice-over-IP firm Vienna Systems for $90 million. ®

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