Jul 23 2009 3:50PM GMT
Posted by: Michael Morisy
LTE,
Nortel,
Verizon,
4G,
Ericsson,
Nokia Siemens,
NSN
Ericsson has finally entered the Nortel fray, announcing their starting bid at $730 million for bankrupt vendor’s LTE and CDMA asset a day before the official auction is held. It will now be (at least) a three-horse race between Nokia Siemens Networks (NSN), private equity firm MatlinPatterson and Ericsson. While MatlinPatterson will likely bow out early, both equipment vendors have a lot to gain, particularly as they try to position themselves to win Verizon’s lucrative LTE business.
“There’s synergies, there’s scale, and both of them are part of the Verizon network to move to LTE,” said Akshay Sharma, research director at Gartner. He said both companies would benefit from being able to offer Verizon a smoother upgrade path to LTE, which could win some business from Alcatel-Lucent which already has as a strong advantage when it comes to LTE deployments.
According to the Wall Street Journal, Ericsson could be quite serious about capturing that advantage. “We are pursuing the deal because it seems to be an interesting opportunity and we are always looking for ways to create value for Ericsson,” the paper quoted a Ericsson statement, adding “we will pursue this opportunity to the point it makes sense.”
Further Reading:
Mar 9 2009 6:37PM GMT
Posted by: Kate Dostart
telecom financial results,
Global Crossing,
Comcast,
Sprint Nextel,
Rogers Communications,
Carrier Ethernet,
Juniper Networks,
Nokia Siemens,
U.S. broadband stimulus plan,
4G,
WiMAX,
LTE,
Verizon Wireless,
Clearwire,
Qualcomm,
HP,
Nortel
This week’s Telecom Timeout features Q4 results from Global Crossing, Comcast, Sprint Nextel and Rogers Communications, as well as a Carrier Ethernet progress report from the Juniper Networks and Nokia Siemens partnership, the results of the U.S. broadband stimulus package, and a 4G update on WiMAX and LTE from Verizon Wireless, Comcast, Clearwire, Qualcomm and CenturyTel. HP announces the new formation of its own telecom group, Nortel finds at least one buyer for some of its assets and YouTube is experimenting with downloadable content for a fee.
Keeping you up-to-date on the latest in telecommunications industry news, views and strategy, Telecom Timeout and its weekly video blog track the highs and lows of the industry. Join us daily on Telecom Timeout for conversations on developing telecom trends and in-depth analysis of service providers, VoIP, wireless, IPTV, telecom regulation, and more.