Nokia Siemens Networks (NSN) has offloaded its WiMAX business unit to little known NewNet Communications. NSN had acquired the WiMAX unit from Motorola earlier in July 2010, but the deal was only finalized in May 2011 after it ran into a number of hurdles. As a part of its recent restructuring effort NSN has been in the process of offloading non-critical business units. Recently NSN sold its microwave unit to Dragonwave and has recently announced 17,000 layoffsas a part of a €1 billion cost cutting plan.
NewNet Communications is a US based technology firm with a history of acquiring distressed assets with an aim of turning them around. This includes UTSTarcom’s IP messaging and PDSN assets, SS8 Networks signaling and SMS products, and Traxcom’s secure transaction processing platform.
Apart from acquiring 300 staff based in US and China, NewNet will get all of the WiMAX portfolio including access points, base stations and ASN gateways for 802.16d and 802.16e. NewNet is also acquiring 43 of NSN’s WiMAX customers who have been caught in the middle of the NSN-Motorola deal, and have been desperately searching for a resolution.
However, it’s not clear whether NSN has retained any dual mode TD-LTE/WiMAX assets or is in the processing of continuing development of such solutions. NewNet has stated that it hasn’t acquired any such dual mode TD-LTE/WiMAX base station assets.
Huawei who is one of the key rivals of NSN, has been marketing its dual mode TD-LTE/WiMAX Single RAN solution to transition WiMAX operators to TD-LTE. If NSN does lose out on dual mode LTE/WiMAX deals, Huawei is likely to make the most of this opportunity, which could hurt NSN’s TD-LTE business, at the cost of improving overall profitability at the firm.