Huawei to be the Potential Buyer of Motorola’s Network Services
Published on March 17, 2010 by Rebecca | This story has been viewed 266 times
According to foreign media reports, Motorola is currently preparing the sale of its mobile network infrastructure equipment business. At the same time, Motorola is also considering forming a joint with a rival company to transfer this business.
The U.S. mobile phone maker Motorola is planning to separate its mobile phone business and network equipment business, which is expected to work out early next year. Both of the mobile phone business and the network equipment business will be listed after they separate from each other.
China’s Huawei is clearly an appropriate choice, but any re-sale will be subject to the risk of obstruction from Washington. Investment banking analyst at Bernstein bank appraised the value of Motorola’s network equipment to be between 1 billion and 20 billion U.S. dollars. Due to the lack of business scale of Motorola’s network equipment, so analysts expect Motorola’s network equipment business will likely be sold to a larger competitor.
Currently, Huawei is keen to increase its sales in the United States. In 2006, Huawei and Motorola made a partnership on the development of the third-generation wireless technology network equipment. Huawei’s chief marketing officer Ken Hu said that Huawei will consider all acquisition opportunities. When asked whether Huawei was interested in Motorola’s network equipment business, Ken Hu highlighted their cooperation relationship in 3G equipment. He added, “We hope that Huawei and Motorola will continue to maintain a good business relationship.”
Motorola co-CEO Greg Brown told reporters, “I think the network equipment business will be able to maintain its vitality for a long time. But if there are other options or a partner to provide us with a better option, we will also consider about it.” At present, the four world’s leading mobile network equipment manufacturers are Ericsson, Huawei, Nokia Siemens and Lucent-Alcate. Motorola will only consider the choice provided by these four companies, among which Huawei and Ericsson are more powerful than the other two.
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