Nortel to Sell UMTS Access Business to Alcatel
Nortel has signed a non-binding Memorandum of Understanding for the sale of its UMTS access business to Alcatel for $320 million, a move that will enable Nortel to simplify its business and strategically focus its investments for leadership in key markets while ensuring its customers’ UMTS access requirements will continue to be met. As part of its business strategy, Nortel is executing on plans to increase investment in key areas, partner in others and divest where there is no path for it to lead or realize attractive returns.
“Nortel is sharpening its focus on the markets in which we intend to lead. Our UMTS access business lacks the scale and momentum needed to become profitable,” said Mike Zafirovski, president and CEO, Nortel.
There are three core elements of Nortel’s strategic focus — next-generation mobility, enterprise transformation, and services and applications. Much like its partnership with Microsoft announced in July, this sale to Alcatel would be another key step in changing the trajectory of Nortel’s business. As part of its ongoing mobility business, Nortel will continue to develop and support solutions for the evolution of GSM access and core, GSM-R, GPRS and EDGE technologies as well as CDMA access and core and UMTS core.
The proposed sale includes Nortel’s UMTS access product portfolio made up of the Radio Network Controller and Node B products and OAM solutions, related services and associated assets. It is anticipated that the significant majority of employees of Nortel’s UMTS access business will transfer to Alcatel. Completion of the transaction is subject to, among other things, the negotiation and execution of a definitive agreement between Nortel and Alcatel, completion of consultations with work councils and other employee representatives, and customary closing conditions including regulatory approvals. The parties are targeting completion of the transaction in the fourth quarter of 2006.
“This deal is good for our UMTS access customers. They will benefit from Alcatel’s resulting scale in this market. We will work closely with Alcatel to make the hand-over as smooth as possible for our customers, with whom we plan to have strong, on-going relationships,” said Richard Lowe, president, Mobility and Converged Core Networks, Nortel.
“The expertise of Nortel’s UMTS team is well-known, and I am confident that our combined forces will pave the way for further success in the wireless market,” said Marc Rouanne, president of Alcatel’s mobile communications activities. “We are committed to support and evolve our extended customer base.”
Mobily Awards Huawei HSDPA Commercial Deal
Huawei Technologies Co., Ltd. has signed a contract with Saudi Arabia’s Mobily (Etihad Etisalat) for the construction of an UMTS network. According to the contract, Huawei will supply its New Generation Node B solution as part of Mobily’s plans to deploy a UMTS terrestrial radio access network (UTRAN) based on High Speed Downlink Packet Access (HSDPA). Huawei strategically collaborates with Mobily, owned by UAE’s Etisalat, not only in the field of 3G but also in deploying GSM networks.
“Huawei is pleased to be the major supplier for Mobily’s 3G Network and deploy a high quality network with strong performance,” said Wang Jiading, VP, Huawei Technologies, Middle East and North Africa Operations. “We are confident in our ability to continuously add value to our customers with innovative 3G solutions.”
Huawei’s UMTS New Generation Node B incorporates new and innovative features, such as an efficient digital power amplifier to support the multicarrier technology and support for full-performance HSDPA. The new generation UMTS Node B effectively improves network performance for operators.
Monster Launches www.monstergulf.com
Monster, the online careers and recruitment resource and flagship brand of Monster Worldwide, has launched its 28th site worldwide — Monster Gulf. With the launch of the local site, Monster has added another important region, the Middle East, to the repertoire of geographies in which it is present. Monster’s Gulf region, which includes the UAE, Saudi Arabia, Kuwait, Oman, Bahrain, Qatar, Jordan and Lebanon, has over 6.2 million Internet users representing 14.3 percent of the region’s population.
Speaking on the launch, Steve Pogorzelski, Group President, Monster International commented, “The Middle East region is an important addition to the Monster network. We have been looking to expand the footprint for some time now and the Middle East region provided us with the right mix of economic buoyancy and the resultant talent requirement.”
Monster has appointed Dhruv Shenoy as Country Manager for its Middle East business. In his new role, Dhruv will be responsible for all of Monster Middle East’s business activities including sales, marketing and customer service.
Talking about Dhruv’s new role, Arun Tadanki, president and MD, Monster India, Singapore, Hong Kong and Middle East said, “To tap the potential of the Middle East, we have decided to expand and invest in the region. Given the significant opportunity, it is important that we provide this region a special focus from a management perspective. Over the last six years, Dhruv has made a large contribution to the growth of our business in this region. He has a solid understanding of all the operations of our business and I have no doubt that he will make Middle East a bigger success.”
EADS to Increase Investment in India
EADS CEO Tom Enders, during meetings in New Delhi with India’s top officials, stated that the Group is committed to supporting India in the development of both its aerospace infrastructure and its industrial capabilities in aviation, space and defense technology. EADS India Private Limited, a 100 percent owned subsidiary of EADS, was registered earlier this year and will lead the development of the Group in India.
A significant step will be the opening of the EADS Technology Center India. This campus-style institution will bring both the EADS subsidiaries and the Indian partners under the same roof, performing engineering and information technology services. The decision on the location will be made soon. Operations are expected to begin in the second quarter of 2007 and the entire campus will be inaugurated in early 2008.
Central to the EADS campus will be a state-of-the-art engineering unit called the Engineering Center Airbus India. It will be a 100 percent owned subsidiary of Airbus and will represent the biggest on-site unit owned by an EADS Division. The Airbus Engineering Center will focus on high-end engineering analysis and design and will eventually work closely with several Indian aeronautic suppliers. The Airbus Engineering Center is expected to enter into operation during the first half of 2007 from a temporary site, with a recruitment program starting as early as this month.
The EADS Technology Center India will become a major employer in the aerospace and defense sector in India with the potential to create up to 2,000 jobs. Over the next 15 years, the volume of investment and high-tech activities generated thanks to the EADS Technology Center, including the Airbus Engineering Center and other cooperation programs will reach approximately Rs.11,000 crores (2 billion euros).
New Dell Customer Contact Center in Manila
Dell will open its second customer contact center in the Metro-Manila area early next year to provide additional technical support for US consumers. The new site is expected to take its first customer calls in February 2007. Staffing plans for the new location are being finalized.
“Our Pasay City team has done an excellent job in answering customer questions and solving their issue. That is a major factor in our decision to expand our investment in the country,” said Richard Hunter, Dell’s vice president for Americas customer experience and support.
This announcement continues Dell’s investment in customer support and in the Philippines. In March, Dell Chairman Michael Dell announced the expansion of Dell’s Pasay City customer support center from 700 employees to 1,400. It currently employs 900 customer support representatives. In the last two years, Dell has announced or opened 10 new customer contact centers including the Pasay City center, which took its first call last February.