Will Nortel spin off UMTS business?
UBS Securities is telling its clients that Nortel has separated its GSM and UMTS access businesses, which may be a sign that the company is spinning off its UMTS business. Meanwhile, the previous vice president and general managers for WiMAX and Converged Core Networks, which includes IMS, have left the company. Both IMS and WiMAX are two of the three strategic focus areas for Nortel. Meanwhile, Nortel has been shoring up its expertise on the enterprise side, having announced a strategic alliance with Microsoft to share technology and marketing in order to speed up the availability of unified communications. Analysts have continually questioned what Motorola and Nortel will do to compete in an infrastructure market that has seen some massive mergers this year. Both Motorola and Nortel have been left out of the acquisition spree at this point. Motorola's joint venture with Huawei might be a clue to its direction.
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