Alcatel to acquire Nortel's UMTS radio access business

New Delhi, Sep 1 (UNI) France-based communications solutions provider Alcatel today said it has signed a non-binding Memorandum of Understanding (MoU) with Canadian telecom giant Nortel to acquire its UMTS radio access business (UTRAN) and related assets with an investment of 320 million dollar.

Under the agreement, Alcatel intends to acquire Nortel's UMTS radio access technology and product portfolio, associated patents and tangible assets as well as customer contracts, a company statement said.

Following the transaction, Alcatel would serve an additional fourteen UMTS customers around the world for a combined global footprint that amounts to one in four UMTS operators.

Further, it would reinforce its presence with Tier-1 operators, especially in world-leading 3G markets such as South Korea, Italy, Spain, France, and the UK.

''I am confident that the scale resulting from our combined forces (including those of Lucent, pending the conclusion of the merger) will pave the way for further success in the wireless market. We are clearly poised to become a strong number three in UMTS and HSxPA,'' Alcatel's mobile communications activities President Marc Rouanne said.

Combined with our strong GSM/EDGE position, this acquisition will add further momentum to Alcatel's broadband wireless access strategy, he added.

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