Alcatel-Lucent Purchase of Nortel 3G Business Complete

Alcatel-Lucent has closed its acquisition of Nortel Networks’ Universal Mobile Telecommunications System (UMTS) mobile infrastructure business, the companies announced Tuesday.

Alcatel-Lucent announced plans to buy the third-generation (3G) networks business in September for $320 million minus transaction costs. It has cleared the final regulatory approvals and closed the purchase on Dec. 31, it said.

The deal makes Alcatel-Lucent one of the largest providers of UMTS gear, with one in four UMTS operators worldwide using its products, the company said.

Nortel had failed to establish a leading position in the 3G market and will now focus instead on what it calls 4G mobile technologies, including WiMax, evolution-data optimized Revision C, and the long-term evolution generations of UMTS. It will also continue to support customers using earlier code division multiple access and Global System for Mobile Communications technologies.

About 1,700 employees from Nortel’s UMTS unit are moving to Alcatel-Lucent, including most of the R&D team, the companies have said.

Alcatel and Lucent completed their merger in November.

-James Niccolai, IDG News Service (Paris Bureau)

Related Links:

• Alcatel-Lucent Merger Complete

• Alcatel-Lucent Merger OK’d by Shareholders

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