Friday, October 04, 2013

4G: Nokia and Alcatel-Lucent can close a joint venture

The market for network infrastructure vendors are busy in late 2013. According to rumors, Nokia will be discussing internally if get closer to its French rival Alcatel-Lucent for a merger, part of the Finnish company's strategy to grow after the sale of its mobile business to Microsoft. A union between Nokia Siemens Networks and Alcatel-Lucent have strong impact on the market 4G - with direct impact on Ericsson and Chinese rival Huawei in direct business with the carriers.

No formal conversation are in progress with Alcatel-Lucent, the sources said. One person close to the situation said that Nokia held discussions to buy the business of Alcatel Mobile in mid-2012 and that the two companies could return to the negotiating table. Speculation about a combination between Nokia and Alcatel-Lucent have occur a few years ago, while the two companies are struggling to compete with market leader Ericsson and Asian companies network equipment Huawei and ZTE.

Microsoft announced on September 3 that will buy the business phones and Nokia patents for 5.44 billion euros (7.3 billion dollars). Nokia said that it will evaluate strategies for its remaining operations before closing the deal. These operations include mapping software called HERE and patent portfolio.

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