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Nortel offers GSM/GSM-R biz on 'open auction'

Posted: 07 Oct 2009     Print Version  Bookmark and Share

Keywords:Nortel GSM business  wireless  GPRS 

Nortel Networks Corp., its principal operating subsidiary Nortel Networks Ltd and certain of its other subsidiaries, including Nortel Networks Inc., Nortel Networks UK Ltd and Nortel Networks SA, plan to sell the global GSM/GSM-R business by "open auction." In connection with the proposed sale, the company will also transfer specified patents predominantly used in the GSM business and grant non-exclusive licences of other relevant patents.

Nortel has filed a motion seeking the establishment of a Section 363 sale procedure with the United States Bankruptcy Court for the District of Delaware that will allow qualified bidders to submit offers for the GSM/GSM-R business. A similar motion for the approval of the sale procedure will be filed with the Ontario Superior Court of Justice.

"The proposed sale process will provide a timeline for identifying the successful bidder for our valuable GSM/GSM-R assets," said Pavi Binning, chief restructuring officer, Nortel. "The process is expected to result in a formal agreement with a buyer. We have seen interest in this business during extensive initial discussions."

GSM is the most popular wireless technology standard for mobile phones in the world. Nortel is a leading supplier of GSM networks and has worked with operators worldwide on implementing the GSM family of access technologies including GSM/GPRS/Edge. Also based on GSM technology is GSM-R (GSM for Railways) which provides a secure communications system for railways operators. Nortel has more than 15 years experience with this technology and is the number one GSM-R provider globally.

"This sale process will provide customers with a path forward for the future of their networks and offers us a mechanism to finalise a buyer in a timely and orderly fashion," said Graham Richardson, GM for the GSM/GSM-R business, Nortel. "This approach will enable the industry to continue to benefit from Nortel-created technology, our highly-skilled employee base, our know-how and leading-edge innovation."

"We remain committed to serving our customers without interruption through this process. As we move forward we will communicate our progress to the greatest extent possible," added Richardson.

Nortel has worked with more than 100 operators in over 65 countries to implement cost-effective, high-performance GSM/GPRS/Edge networks. Built on Nortel's GSM access and core network solutions, the networks are characterised by near-wireline voice quality, unparalleled security, unequalled radio performance, high-availability and leading-edge wireless voice and data capabilities. Nortel recently introduced Nortel Smart Power Management software, a feature which, when, combined with other enhancements made to Nortel's GSM technology, make 's Nortel GSM portfolio up to 50 per cent more energy efficient than it was five years ago.

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