Alcatel has reached a preliminary agreement to buy Nortel Network’s third-generation (3G) mobile phone network business for US$320 million.Under terms of the proposed deal, Alcatel will acquire Nortel’s Universal Mobile Telecommunications Business (UMTS) radio access business, including 14 Nortel customer contracts, the companies announced Friday. UMTS is a 3G telecom standard used in Europe based on wideband code division multiple access.The deal would make Alcatel one of the biggest suppliers of UMTS gear worldwide, giving it contracts with one in four UMTS operators, it said.The companies have signed a nonbinding agreement to merge and hope to close the deal by the end of the year. Closing the merger depends on arriving at a final acquisition agreement, negotiations with works councils, and securing regulatory and other approvals, they said. A “significant majority” of Nortel’s employees in the UMTS division would be transferred to Alcatel, the companies said.The deal appears not to affect Alcatel’s proposed merger with Lucent, announced in April. That deal is due to be voted on by shareholders of both companies on Sept. 7, although some Lucent shareholders opposed the deal and are trying to block the vote in court. Alcatel said it would involve Lucent in the integration of the UMTS business. The sale by Nortel continues a restructuring plan at the company that has included 1,900 job cuts over the next year. The Canadian company said in a statement its UMTS access business “lacks the scale and momentum needed to become profitable.”Nortel said it will continue to develop global system for mobile communications and other mobile technologies, as the company focuses on emerging 4G mobile video and multimedia services. Alcatel sees the acquisition as a way to build on an expanding UMTS market and increase its technology portfolio for major operators such as Orange and Vodafone.-Jeremy Kirk, IDG News Service (London Bureau)Related Links: French Advisory Firm Opposes Lucent-Alcatel Merger Alcatel, Lucent Unveil Merged NameCheck out our CIO News Alerts and Tech Informer pages for more updated news coverage. Related content brandpost Sponsored by Freshworks When your AI chatbots mess up AI ‘hallucinations’ present significant business risks, but new types of guardrails can keep them from doing serious damage By Paul Gillin Dec 08, 2023 4 mins Generative AI brandpost Sponsored by Dell New research: How IT leaders drive business benefits by accelerating device refresh strategies Security leaders have particular concerns that older devices are more vulnerable to increasingly sophisticated cyber attacks. By Laura McEwan Dec 08, 2023 3 mins Infrastructure Management case study Toyota transforms IT service desk with gen AI To help promote insourcing and quality control, Toyota Motor North America is leveraging generative AI for HR and IT service desk requests. By Thor Olavsrud Dec 08, 2023 7 mins Employee Experience Generative AI ICT Partners feature CSM certification: Costs, requirements, and all you need to know The Certified ScrumMaster (CSM) certification sets the standard for establishing Scrum theory, developing practical applications and rules, and leading teams and stakeholders through the development process. By Moira Alexander Dec 08, 2023 8 mins Certifications IT Skills Project Management Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe