Thursday, October 1, 2009

Nortel to Auction its GSM/GSM-R Business

Nortel is planning an open auction to sell substantially all of its global GSM/GSM-R business. In connection with this proposed sale, the company also expects to transfer specified patents predominantly used in the GSM business and grant non-exclusive licenses of other relevant patents. Qualified bidders are required to submit their offers by 05-November-2009. Competing qualified bids are then expected to proceed to an "open auction", which, under the proposed bidding procedures, is scheduled for 09-November-2009. Any final sale agreement would be subject to approval by the U.S. and Canadian courts.

Nortel has worked with more than 100 operators in over 65 countries. Nortel supplies GSM access and core network solutions and recently introduced its Smart Power Management (SPM) software, a feature which, when, combined with other enhancements made to Nortel's GSM technology, make Nortel GSM portfolio up to 50% more energy efficient than it was five years ago. Also based on GSM technology is GSM-R (GSM for Railways) which provides a secure communications system for railways operators. Nortel claims to be the leading GSM-R provider.

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