Ericsson to acquire Nortel’s North American GSM business
YES, good show Ericsson!
Of all the glum news occurring lately about companies laying off employees along with uncertain economic times of employment – including mine – is awesome to see this news. Especially since Ericsson’s mobile partnership with Sony; Sony Ericsson laying off employees and closing offices in 3 United States.
Being a successful bidder in the auction of Nortel’s North American GSM/GSM-R business gives Ericsson contracts with AT&T & T-Mobile USA. This means not only will T-Mobile USA get to expidite their 3G deployment, or AT&T finally getting proper 3G/HSPA deployment and better bandwidth for a horribly congested network, but adding 350 employees!
Not too long ago many pensioners from Nortel faced off against Parlament here in Toronto, Ontario. I’m unsure of the outcome considering the following but it may shift a hand in these pensioners coming closure to a better retirement.
Nortel cries “poverty” this company has $2.6 billion in cash and up to $6 billion in cash after all its business sales
But that’s for another topic – not on this blog.
This deal means greater chances of LTE coming to North America at competitive prices for networks, meaning better monthly rates for users (I pray, but not always the case). The residual side affect of this deal – if approval from regulatory bodies allows – means possible SonyEricsson handsets being able to use decent mobile chipsets from Ericsson, not to mention many of the competition.
Along with our recent acquisition of Nortel’s CDMA and LTE assets, the transaction emphasizes Ericsson’s commitment to the North American market and strengthens our position as a leading provider of telecommunications technology and services in the United States and Canada” said Hans Vestberg, incoming President and CEO of Ericsson. “Our Ericsson family will be once again enriched by the addition of the valuable Nortel employees.”
The agreement includes the transfer of important GSM business with North American operators such as AT&T and T-Mobile. Under the agreement Ericsson will offer employment to approximately 350 employees from Nortel. Nortel’s North American GSM operations generated approximately USD 400 million in 2008.
(yeah I can’t sleep).