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How Could a Potential Nortel and Motorola Joint Venture on the Wireless Infrastructure Side Affect WiMAX?
Reports are that Motorola and Nortel are in talks to create a Joint Venture in the wireless infrastructure business.
Recent reports in the Wall Street Journal that Motorola is considering a potential Joint Venture with Nortel for its wireless infrastructure business have led to a lot of speculation on the value of such a deal for the two companies.
Motorola has already been considering doing something with its wireless handset business including a potential spin off. For Motorola, its struggles have clearly been in this business unit. The balance of its business is showing solid growth. But handsets have struggled. This division also provides a major portion of Motorola's business revenue however. If, as many believe the handset division is undervalued, this could unlock value to give the group a standalone focus.
For Nortel's part, much of its existing business on the infrastructure side is in CDMA and GSM offerings. Nortel clearly believes the future lies elsewhere and a JV here, especially one that moved strongly towards LTE technology could offer a lot of value for both.
Tim Sanders,
www.TheFinalMile.netmot
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