Nokia on Tuesday confirmed its talks with Alcatel-Lucent to buy the wireless business.
The buy-out will represent a significant boost in market share for Nokia Networks. Alcatel-Lucent wireless infrastructure unit accounted for 36 percent of total sales for the Paris-based company in 2014, according to Bloomberg, generating $5 billion in revenue.
The deal would assist Nokia to enhance its mobile infrastructure business against Swedish rival Ericsson. Alcatel’s position as a leading supplier of 4G and LTE mobile networks and related services in major markets including India will be an additional boost for Nokia Networks.
Nokia in a statement said: “In relation to recent media speculation Nokia and Alcatel-Lucent confirm that they are in advanced discussions with respect to a potential full combination, which would take the form of a public exchange offer by Nokia for Alcatel-Lucent.”
“There can be no certainty at this stage that these discussions will result in any agreement or transaction,” said Nokia and Alcatel-Lucent in separate statements issued on Tuesday.
Nokia Networks earlier said its Q4 2014 revenue increased 8 percent to EUR 3.4 billion to $3.8 billion — mainly due to strong performance in North America.
ALSO READ: Nokia Networks revenue details
Mobile Broadband of Nokia Networks jumped 13 percent — driven by growth in core networking technologies and modest growth in radio technologies. Within radio technologies, strong growth in LTE was partially offset by a decline in mature radio technologies, said Nokia.
Alcatel-Lucent earlier said its Q4 2014 revenue fell 6 percent to $4.22 billion or €3,682 million – primarily due to drop in revenue in North America and Europe.
ALSO READ: Alcatel-Lucent revenue details
Wireless Access revenues decreased 9 percent to € 1,211 million, as LTE 4G roll outs drove robust investments in the fourth quarter, mainly for capacity in the US and TD-LTE deployments in China, but at a more moderate pace compared with the first half of 2014.
Alcatel-Lucent diversified its LTE customer base, with 11 new wins in the fourth quarter including AINMT in Scandinavia and expanded its small cell presence, signing 3 new customers, bringing total to 76.
Baburajan K
editor@telecomlead.com
