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Alcatel May Acquire Nortel’s Wireless Data Solutions Business

6:00 am on August 3, 2006 | Category: Business, Cellular, Wireless Technology

Alcatel, a French telecom equipment vendor, is reportedly in advanced talks to acquire the high-speed wireless technology arm of Nortel Networks.

The French company will only have a small window of opportunity to make acquisition deals like this one, before completing its merger with U.S.-based competitor, Lucent Technologies, later this year.

“We are open to all options that would allow us to boost our presence in that technology,” Alcatel told Reuters in a recent interview, but refused to confirm or deny the talks with Nortel.

An analyst with Paris based Oddo Securities, however, says that the negotiations are well underway, and that a deal could potentially be announced at any time.

“According to our industry contacts with Nortel France, the acquisition process is well under way,” commented Vincent Maulay, an analyst with Oddo.

Many industry analysts believe that acquiring the Nortel division would make sense, since Alcatel and Lucentâ€™s share of the high-speed wireless equipment market is quite small. Together, the companies only have a worldwide market interest of 6%, while Nortel boasts a 10% share.

Buying Utran, as the high-speed wireless unit is called, would give Alcatel a greater presence in the global market for cellular data solutions, against competitors like Ericsson, and the joint venture of Nokia and Siemens.

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