Feeds

Nokia (Siemens) snaps up Motorola (infrastructure)

The circle gets a little smaller

Internet Security Threat Report 2014

Nokia Siemens, the infrastructure parts of Nokia and Siemens, is spending $1.2bn on Motorola's infrastructure business, further consolidating an already oligopolistic industry.

The deal should be completed by the end of the year and will give Nokia Siemens greater presence in Japan and America, not to mention CDMA and WiMAX assets. This would leave Motorola with just its handset division to get shot of so it can concentrate on providing radios for vertical markets and counting the cash.

Telecommunications infrastructure is a strange business, almost entirely dominated by a handful of players competing for a small number of very large contracts. The number of such contracts has been dropping lately as the developing world has developed, and deployment schedules for next-generation services have slipped. Nokia Siemens lost $1.1bn last year, and it's still a long way from making money, forcing the the company to keep busy cutting costs since then.

Those cuts include reducing the head count by around 6,000, which should leave space for the 7,500 people who'll be coming in from Motorola once this deal is completed. The enlarged Nokia Siemens will still only be the second largest infrastructure provider behind Ericsson, with Alcatel-Lucent and relative-newcomer Huawei filling out the rest of the oligopoly.

Motorola lacked the scale to compete properly in that business, though it managed some significant contracts that Nokia Siemens will be pleased to exploit – notably KDDI's LTE deployment in Japan.

One bit that isn't part of the sell off is Motorola's own iDEN (Integrated Digital Enhanced Network) technology or deployments. That's hardly surprising given the limited scale of iDEN deployments, but Motorola also retains ownership of all the related patents, which have to be worth a bob or two.

Selling off the infrastructure division is part of Motorola's plan to separate out its handset business, which should happen next year (assuming a buyer can be found). That will leave the company's shareholders with a big pile of cash, while the company goes on selling radios to the police and the bigger enterprises, and running those iDEN networks. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Same old iPad? NO. The new 'soft SIMs' are BIG NEWS
AppleSIM 'ware to allow quick switch of carriers
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Brits: Google, can you scrape 60k pages from web, pleeease
Hey, c'mon Choc Factory, it's our 'right to be forgotten'
Of COURSE Stephen Elop's to blame for Nokia woes, says author
'Google did have some unique propositions for Nokia'
It's even GRIMMER up North after MEGA SKY BROADBAND OUTAGE
By 'eck! Eccles cake production thrown into jeopardy
Mobile coverage on trains really is pants
You thought it was just *insert your provider here*, but now we have numbers
Don't mess with Texas ('cos it's getting Google Fiber and you're not)
A bit late, but company says 1Gbps Austin network almost ready to compete with AT&T
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.