Alcatel wants to be the big cheese in the 3G market. The company announced today that it is buying Nortel’s UMTS business for about $320 million. If Lucent-merger made Alcatel a big player in the CDMA market, the Nortel deal gives it more heft in the post-GSM 3G market. I like the new Nortel CEO – he is saying it like it really is.
“Nortel is sharpening its focus on the markets in which we intend to lead. Our UMTS access business lacks the scale and momentum needed to become profitable,” said Mike Zafirovski, president and chief executive officer, Nortel.