Motorola close to selling wireless network unit

New York: Motorola is near a deal to sell its wireless-network equipment business to Nokia Siemens Networks for more than $1.3 billion (Dh4.8 billion), according to one person familiar with the sale.

The final price is expected to be between $1.3 billion and $1.4 billion, the person said. Jennifer Erickson, a spokeswoman for Motorola, declined to comment.

Nokia Siemens Networks, a joint venture between Finland's Nokia and Munich-based Siemens AG, wants to boost its presence in North America to compete with larger rival Ericsson AB and faster-growing competitors such as China's Huawei Technologies. Nokia Siemens unsuccessfully bid twice for assets belonging to Toronto-based Nortel Networks during the past year after the telecom-equipment maker filed for bankruptcy protection and sold off units.

Competition

Nokia Siemens has been cutting jobs and shutting offices to adjust to falling demand and price competition from Ericsson and Huawei. Nokia Siemens Chief Executive Officer Rajeev Suri in November said the company will expand through acquisitions and partnerships while trimming its existing operations.

A Nokia Siemens spokesman didn't immediately return phone calls seeking comment.

Over the past decade, tele-com-equipment companies have combined to cope with declines in spending by some customers. Alcatel-Lucent, a Paris-based rival, was created from the acquisition of Lucent Technologies by French company Alcatel SA in 2006. Since that deal closed, the stock has declined 52 per cent.

Motorola is negotiating to sell the wireless-network unit as it prepares for a broader restructuring.