Nokia agreed to purchase Alcatel-Lucent in a $16.6 billion (€15.6 billion) deal that would form a powerhouse to rival Ericsson and Huawei in the global market for telecom equipment. In the United States, the deal could create a company that could challenge Ericsson's leading position.
Nokia said it is to buy Alcatel-Lucent in a deal that values the France-based company at €15.6 billion ($16.6 billion) and creates a new European powerhouse in the telecoms equipment market.
Nokia and Alcatel-Lucent confirmed they are in talks for Nokia to acquire Alcatel-Lucent in a merger that could give the combined company more fighting weight against Ericsson and Huawei in the network gear market. According to research firm IDC, the combined company would become the world's largest wireless network equipment vendor.
Huawei's 2014 operating profit came in at the high end of earnings guidance provided by the company mid-January, as the equipment vendor reported a record full year net profit.
Huawei said its 2014 net profit jumped 33 percent thanks to improving sales and better management of foreign exchange rates. Although the Chinese-based company is still effectively barred from securing a network gear deal with a Tier 1 U.S. carrier because of national security concerns, Huawei's networks business abroad is booming thanks to demand for LTE equipment.
The Netherlands Prime Minister Mark Rutte praised Huawei's contribution to the development of the country's ICT infrastructure during a meeting with Ren Zhengfei, founder and CEO of the Chinese equipment vendor.
ATLANTA--Although Huawei has effectively been shut out of network-infrastructure deals with Tier 1 U.S. carriers over cybersecurity concerns, the vendor keeps chugging along with Tier 3 operators and added eight new U.S. wireless or wireline customers in 2014.
Huawei sought to end questions over the security of its telecoms infrastructure equipment, revealing an independent UK cyber security team established by the company in 2010 has cleared it of posing any danger to the country's national security.
ATLANTA--Ericsson wants to help Tier 3 carriers expand their business into the Internet of Things, according to an Ericsson executive. However, challenges await smaller carriers looking to expand beyond providing traditional voice and data services to consumers.
Ethiopia's state-run telecoms monopoly has started selling 4G services in the capital Addis Ababa, offering packages for use with an LTE dongle or LTE Wi-Fi router from Huawei or an LTE-enabled smartphone.