Ericsson-Nortel Deal Nearly Complete - InformationWeek
IoT
IoT
Mobile
News
8/20/2009
01:51 PM
50%
50%
RELATED EVENTS
Faster, More Effective Response With Threat Intelligence & Orchestration Playboo
Aug 31, 2017
Finding ways to increase speed, accuracy, and efficiency when responding to threats should be the ...Read More>>

Ericsson-Nortel Deal Nearly Complete

RIM's appeal to the Canadian government to stop the $1.13 billion acquisition appears to be falling on deaf ears.

Time is ticking away on Research In Motion's attempt to stop Ericsson's $1.13 billion deal to take over Nortel's LTE/CDMA unit.

The deadline for an appeal in bankruptcy court expired this week and RIM did not challenge the deal. RIM has asked Canadian government officials to challenge the takeover on national security grounds, but Prime Minister Stephen Harper has indicated he won't block it.

RIM hasn't said much publicly about why it is interested in the Nortel assets, but the Ontario-based firm hasn't carried out much infrastructure deployment, while Nortel and Ericsson have. It likely has its eye on Nortel's valuable LTE intellectual property assets. RIM has been forced to pay staggering sums of money on intellectual property issues in the past and wants to gird for the future by beefing up its own wireless patent portfolio.

A last-ditch attempt to block the sale to Ericsson revolves around arcane methods of valuing Nortel's prized unit. Generally, the deal isn't likely to be reviewed by the national government unless the book value of the assets exceeds $312 million Canadian, according to a complex formula. Nortel, however, has argued that the acquisition is valued at $149 million Canadian, which would preclude a review by the government.

Earlier this month, Ericsson's Mark Henderson said that Nortel will continue to own LTE patents, which will be available on a non-exclusive basis to other companies, according to Canadian media reports. Henderson, who is president and CEO of Ericsson Canada, has noted that Ericsson has deployed much existing wireless telecom infrastructure in Canada.

The LTE patents are promising to become increasingly valuable as LTE networks are rolled out throughout the world. In the United States, Verizon Wireless has successfully tested the technology in Boston and Seattle and plans to launch a commercial LTE service next year.


InformationWeek Analytics and DarkReading.com have published an independent analysis of security outsourcing. Download the report here (registration required).

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
IT Strategies to Conquer the Cloud
Chances are your organization is adopting cloud computing in one way or another -- or in multiple ways. Understanding the skills you need and how cloud affects IT operations and networking will help you adapt.
Video
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll