Gets closer to US carriers; plans to integrate Nortel's LTE software into product line
Nokia Siemens Networks (NSN) will benefit from Nortel’s “strong” software presence in LTE, and knowledge of MIMO, CEO Simon Beresford-Wylie has told journalists.
Speaking this afternoon after Friday’s announcement that NSN is buying Nortel’s CDMA assets, Beresford-Wylie said that the company could harness Nortel’s LTE software and algorithms, as well as its strong R&D and innovation focus, to NSN’s hardware platform.
The deal would also help NSN deepen its relationship with US and Canadian operators, with whom Nortel has a 38% share for CDMA. Although CDMA is a declining, though still profitable market, Beresford-Wylie said he expected to benefit from decisions going forward as carriers migrate to LTE. For instance, he predicted that by gaining a close customer relationship with Verizon, NSN would be included in the second tranche of LTE radio network investment at the carrier. Ericsson and Huawei were the winning radio network vendors from the first phase of investment.
He denied the acquisition is merely about managing a declining business for profit, and said the focus is on future development of LTE systems, using Nortel’s R&D and “strong technology piloting” capability.
“The deal is the best possible outcome, one that strengthens NSN’s presence in the wireless business and expands its market presence in North America, as well as maintaining jobs and wireless R&D in Canada. We do not have a CDMA business and we believe that Canada has something very special to offer in wireless,” he said.
“ Nortel’s CDMA business is a good and profitable one, and also represents great value for Nokia Siemens Networks. We believe that we can help keep Canada a next gen wireless R&D leader and maintain jobs. It also offers stability to Nortel’s customers as CDMA is clearly a technology that will be around for quite a considerable period of time.”
The NSN CEO said that the acquisition is not only aimed at strengthening its US presence. He said that other areas also have CDMA operators looking to migrate to LTE, and the acquisition would give NSN an infusion of CDMA knowledge – helping those customers in the process.