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Huawei sues to block Motorola/Nokia Siemens deal

China’s Huawei Technologies has filed suit against Motorola (PDF), claiming Motorola’s plan to sell its cell phone networking gear business to Nokia Siemens will illegally transfer Huawei technology to Nokia Siemens. Huawei says Motorola is failing to protect Huawei’s technology during the acquisition, and claims the disclosure will cause them irreparable harm. Huawei wants the court to block the Nokia Siemens deal in order to prevent the company from getting its hands on Huawei’s technology—at least until a deal can be worked out to resolve the technology issues.

The lawsuit may throw a wrench in Motorola’s $1.2 billion deal, announced in mid-2010. Huawei claims it—and its team of 10,000 engineers—developed technologies used in numerous GSM handsets sold by Motorola worldwide, as well as technologies deployed in GSM and CDMA switching systems deployed in China, plus UMTS, WiMax, LTE, and other technologies deployed in Motorola gear worldwide. When Motorola announced the deal with Nokia Siemens, Huawei told Motorola it did not want its technology transferred to Nokia Siemens; however, the companies have been unable to reach an agreement over how to handle the transfer.

The disagreement can also be viewed in a wider context: shortly after announcing the Nokia Siemens deal last year, Motorola sued Huawei, claiming the Chinese company received confidential Motorola information by way of a reseller. Huawei denied the charges, and the case is still pending.

Huawei and Motorola have worked together on radio access network and other technologies since 2000, in some cases with Motorola reselling Huawei products under the Motorola name.

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Geoff Duncan
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Geoff Duncan writes, programs, edits, plays music, and delights in making software misbehave. He's probably the only member…
Huawei has no plans to acquire Nokia, despite widespread reports and chairman’s comments

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Yu also scoffed at Nokia’s decision to go with Microsoft’s Windows Phone operating system, saying the platform is, “Weak” and its low market share makes it difficult to say if it’ll ever be successful. He also commented that it costs money to license Windows Phone, while Huawei’s primary OS of choice, Android, is free.
All this talk saw Nokia’s stock price rise by 12 percent, emphasizing the company’s still precarious position, and talk broke out that a deal was brewing. However, this isn’t, and doesn’t seem to have ever been, the case. The FT article states that sources close to the group told it there was, “nothing on the table,” while Nokia offered no comment on the situation to other publications.
Huawei was seemingly inundated with calls to comment, as it eventually sent an emailed statement saying it, “Has no plans to acquire Nokia.” A spokeperson told Bloomberg, “In the whole history of our company, we have done very few, very small acquisitions.” It’s not for want of trying though, but its attempts to buy 3Com and 3Leaf Systems in 2007 and 2010 respectively, were blocked by U.S. regulators.
So why would it be sniffing around Nokia? Aside from it being prime acquisition material - something it has been for several years now, and Huawei isn’t the first to consider making a bid - Nokia would help Huawei to break into the international smartphone market in a major way, something it’s still struggling to do. With attempts to make it big in America thwarted by accusations of it being a risk to national security, Huawei may be turning to Europe, where it has a stronger presence thanks to several network and infrastructure equipment deals. The Ascend P6, for example, was launched in London and so far only scheduled for release in Europe and China.
At this time, then, a Huawei acquisition of Nokia looks highly unlikely, but that’s not to say Huawei isn’t laying the groundwork for a more concerted effort in the near future.

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While Apple numbers may be impressive overall, the company has a long way to go before it has a chance to make iOS the dominant operating system around the world. While they make up 22 percent of the market, Android devices account for nearly 70 percent of all smartphones in the world.
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As for other phone operating systems, Blackberry came in at third with 3.5 percent of the market; Windows-based phones were at around 2.5 percent; and Nokia phones slid in with just 1.5 percent.

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Nokia Siemens to lay off 23 pct of workers
Nokia Siemens HQ

Nokia Siemens Networks has announced the company plans to cut some 17,000 jobs—about 23 percent of its global workforce—by the end of 2103 in a move to cut the company's expenses by more than €1 billion (about US$1.35 billion). Although the company hasn't released many details of its plan, it says in addition to job cuts, it will beging to outsource services and undergo a "significant reduction" of suppliers in order to reduce costs, while reducing its focus to emphasize mobile broadband technologies
"We believe that the future of our industry is in mobile broadband and services—and we aim to be an undisputed leader in these areas," said Nokia-Siemens CEO Rajeev Suri, in a statement. "At the same time, we need to take the necessary steps to maintain long term competitiveness and improve profitability in a challenging telecommunications market."
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The 50-50 joint venture between Finland's Nokia and Germany's Siemens was formed in 2006, and is the world's second-largest maker of mobile infrastructure gear: they don't make phones, but they make the gear that goes into cell towers and signal processing, in addition to network backhauls, emergency services gear, and serious networking infrastructure. The company also provides a wide selection of consulting and managed services. However, instead of turning into a cash-generating juggernaut, Nokia-Siemens has struggled to generate profits, particular in the wake of the global economic downturn. Nokia-Siemens is also seeing fierce competition from Asian rivals like ZTE and Huawei, which have flooded the market with less expensive gear.
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