Nokia Siemens Networks is paying US$650 million for the Nortel properties which it says will add key talent and resources to Nokia’s existing strengths in LTE development. More than 2,500 Nortel employees, largely located in Ottawa , Canada and Dallas , USA , will be transferred to Nokia Siemens Networks. Around 400 of these staff are focused on LTE research and development. The Export Development Canada (EDC), Canada 's government-owned export credit agency, is supporting this transaction with a US$300 million loan commitment.

In addition to the LTE activity, Nokia Siemens Networks will also acquire Nortel’s profitable CDMA business, significantly improving the Finnish vendor’s presence in North America .

"This agreement provides an important strategic opportunity for Nokia Siemens Networks to strengthen its position in two key areas, North America and LTE, at a price that makes good economic sense," said Simon Beresford-Wylie, Chief Executive Officer of Nokia Siemens Networks. "It also represents stability for Nortel's existing customers and offers a great opportunity for employees to move into a stable future with an industry winner. The R&D organization in Canada would become a long-term wireless center of excellence within Nokia Siemens Networks, complementing our other global sites."

As Nortel is in the process of restructuring, the deal with Nokia is subject to court approval. Hearings are scheduled to be held on or before June 29 with a final decision expected in late July.
Ian Channing