Here are some Pros & Con for comments:
PROs:
1. LU's core network elements (IMS) can boost MOT's a much needed gap in both circuit switching (matrix) and the packet switching (routers) plaforms used in wireless core network.
2. The LU's IMS+MOT's Cablecomm unit(GI) would provides tider integration to compete w/ Cisco+Scienctific Atlanta combo. This would also eliminated the need for Invincsic (Cisco+MOTO join venture), if still existed, which is not very fruitful.
3. The R&D cost reduction would provides LU much need IPR, and resources to focus and strengthen their GSM/WEDGE, WCDMA/HSDPA/HSUPA infrastructure product offering/markets. While freed up MOT to focus on TD-SCDMA + 4G (WiMAX/802.16 802.20)developements.
5. Both Mot's infrastructure (Jack Scanlon) and subsriber/PCS (RON G.) are both ex-Lucent executives, so I don't think their will be much problem with integration of the two MOT+LU.
6. Lucent & MOTO infrastructure product offering can be combine w/o too much overlap even in their Niches market offering, which includes PHS (PDC), iDen (Mobile Trunking), etc,.
CONS:
1. Lucent huge debts + pension pay.
...
A merger of the two is better then joined venture in a highly competitive markets. Remembers MOT+DSC(ALA), MOT+Siemens, MOT+MT, MOT+Excell, MOT+CSCO didn't work out
LU alone seems to spreadout too thin and not enough strength to compete nor focus in anyone of the following growth sector including 3G (1x, WCDMA, TD-SCDMA), 4G (WiMax) , Cablecomm, IP and Convergence markets. The Motorola suiter seems like a good fit. |
