What did Nokia Siemens bid on?
Nokia Siemens bid on the CMDA wireless business and the R&D unit working on LTE wireless.The company’s technology overlaps with Nortel’s, but that’s OK because its customer base doesn’t overlap as much. Both companies, for example, have CDMA and Long Term Evolution technology, but Nokia Siemens doesn’t have anywhere near the penetration into North American carriers that Nortel has. If it closes the deal, Nokia Siemens will do everything it can to take advantage of Nortel’s client list. Nokia Siemens says the deal would boost its share of the North American carrier market from less than 6% to more than 30%. Beyond that, the business Nokia Siemens wants to buy netted $700 million last year, according to the Wall Street Journal. If it remains that profitable, that will pay off the $650 million purchase price in less than a year.
