Nortel Sells LTE Packet Assets To Hitachi - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Mobile
News
10/29/2009
09:23 AM
50%
50%

Nortel Sells LTE Packet Assets To Hitachi

The $10 million deal for long term evolution technology will enable Hitachi to support the transfer of data from 3G networks to next-generation mobile broadband.

Nortel continues to sell off its assets, and it has agreed to sell off some of its packet core assets related to Long-Term Evolution technology to Hitachi for $10 million.

The assets include software, intellectual property, non-exclusive licenses, property, and equipment related to transitioning data from 3G networks to the next generation of mobile data networks. The companies expect the deal to close by the end of the year, and it does not include legacy packet core components for Nortel's UMTS and GSM businesses.

The deal comes as many telecom providers are looking to position themselves for the move to 4G networks. Sprint Nextel and Clearwire have already lit up WiMax networks in multiple markets that deliver average download speeds of 3 to 6 Mbps on-the-go. The companies plan to cover more than 120 million customers with WiMax by the end of 2010.

While WiMax is gaining some traction, the majority of mobile operators around the world have locked in on LTE for their 4G networks. Verizon Wireless has one of the most aggressive rollout plans, as it plans to have LTE networks in 25 to 30 markets by the end of 2010, with a nationwide network by the end of 2015. AT&T plans to upgrade its 3G network to High Speed Packet Access 7.2 first, and it will begin rolling out its LTE network in 2011.

Nortel was hit hard by the global economic recession, and the company filed for bankrupt protection in January. The Hitachi deal is a relatively minor asset selloff, as Nortel sold its Enterprise Solutions unit to Avaya for about $900 million, and its CDMA/LTE business fetched $1.13 billion from Ericsson. The next major auction for Nortel's Ethernet and optical division is scheduled for Nov. 13.

InformationWeek Analytics and Network Computing lay out the eight questions you should ask before committing to storage automation. Download the report here (registration required).

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
Slideshows
10 Ways to Transition Traditional IT Talent to Cloud Talent
Lisa Morgan, Freelance Writer,  11/23/2020
News
Top 10 Data and Analytics Trends for 2021
Jessica Davis, Senior Editor, Enterprise Apps,  11/13/2020
Commentary
Can Low Code Measure Up to Tomorrow's Programming Demands?
Joao-Pierre S. Ruth, Senior Writer,  11/16/2020
White Papers
Register for InformationWeek Newsletters
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
Video
Current Issue
Why Chatbots Are So Popular Right Now
In this IT Trend Report, you will learn more about why chatbots are gaining traction within businesses, particularly while a pandemic is impacting the world.
Slideshows
Flash Poll