Nokia Siemens to sell WiMax business to NewNet
- 30 November, 2011 06:36
- Comments
Nokia Siemens Networks plans to sell its WiMax infrastructure business to NewNet Communication Technologies for an undisclosed sum.
NSN bought the business in July 2010 as part of its US$1.2 billion acquisition of most of Motorola's wireless network equipment unit. The loss-making company has been downsizing as it attempts to compete against rivals including Ericsson and Huawei. Last week, NSN announced it will lay off 17,000 employees worldwide, and on Nov. 4 it agreed to sell its microwave transport business to DragonWave.
NewNet, based in Shelton, Connecticut, sells signaling, messaging and media delivery systems for mobile operators. It is owned by Skyview Capital, a private investment firm.
NewNet will acquire the entire product portfolio and all active customer and supplier contracts. The companies expect to transfer about 300 NSN employees, most of them based in suburban Chicago or Hangzhou, China, to NewNet. The deal is expected to close by the end of this year.
WiMax has been overshadowed by LTE (Long-Term Evolution) as a 4G mobile platform but is still used by many carriers, including Clearwire and Sprint Nextel in the U.S. and mobile operators in South Korea, Japan and China. It is also used for fixed wireless broadband, especially in areas of the world where wired broadband is lacking.
Nokia Siemens was formed more than four years ago as a joint venture between Finland's Nokia and Germany's Siemens. It is attempting to cut €1 billion (US$1.35 billion) from its annual costs by the end of 2013.
Stephen Lawson covers mobile, storage and networking technologies for The IDG News Service. Follow Stephen on Twitter at @sdlawsonmedia. Stephen's e-mail address is stephen_lawson@idg.com
Recommended
Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.
- Bookmark this page
- Share this article
- Got more on this story? Email CIO
- Follow CIO on twitter
-
Why change management doesn’t work
-
Larry Page wants to see your medical records
-
Dual-Persona Smartphones Not a BYOD Panacea
-
After two-year hiatus, EFF accepts bitcoin donations again
-
CIOs struggle to deliver timely mobile business apps: survey
-
Best Practices for Migrating to SharePoint 2013
This white paper details a number of best practices for migrating to SharePoint 2013. These best practices also apply to migrations to most earlier versions of SharePoint. Download now. -
Hybrid IT Service Management: A Requirement for Virtualisation and Cloud Computing
When competition is tough and resources are limited, corporate leaders are depending on growing their existing capabilities in order to grow their business. Information technology can be a unique catalyst for business growth, delivering a competitive advantage when creatively applied to established and emerging problems. Read more on what trends are accelerating the value of IT. -
Protecting Your Data, Intellectual Property, and Brand from Cyber Attacks
Enterprises and government agencies are under virtually constant attack today. It is clear that the cybercriminals, nation-states, and hacker activists waging these attacks are growing increasingly sophisticated and more effective in their efforts to steal and sabotage. Why are today’s security defenses failing? In this battle, your security teams are using outdated arsenal - download now to learn more.
Get exclusive access to Invitation only events CIO, reports & analysis. 
