Nokia rings up $650m for Nortel wireless tech

Nokia Siemens Networks will buy Nortel Networks' wireless technology business for $650m.

Nokia Siemens said on Friday it will use Nortel's CDMA and long term evolution (LTE) technology to expand its presence in the US. CDMA, (code division multiple access), is one of the two major networks operating in the US and is used by Verizon Wireless and Sprint. LTE is 4G wireless technology that will potentially replace today's mobile networks.

Nokia Siemens CEO Simon Beresford-Wylie said in the statement: "This agreement provides an important strategic opportunity for Nokia Siemens Networks to strengthen its position in two key areas, North America and LTE, at a price that makes good economic sense."

As part of the deal, about 2,500 Nortel employees in the US, Canada, Mexico and China can keep their jobs. Nortel said this represents a "significant portion" of the workers associated with that part of its business.

Mike Zafirovski, Nortel CEO, said in a statement: "Maximising the value of our businesses in the face of a consolidating global market has been our most critical priority. We have determined the best way to do this is to find buyers for our businesses who can carry Nortel innovation forward, while preserving employment to the greatest extent possible."

Nortel also said it is working towards selling off the other parts of its business and that it is applying to be delisted from the Toronto Stock Exchange.

The deal with Nokia Siemens is expected to close in the third quarter.

Original article: Gasping for air, Nortel to sell off wireless tech from CNET News.com