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August 22, 2011 / Raffy Pekson II

Buying Nortel’s Next-Generation Technology for 4.5 Billion Dollars

Entrance to Nortel Networks' DC Offices

In 2006, Brampton, Ontario-based Nortel Networks (in Canada) sold its division that developed third-generation wireless equipment to competitor Alcatel for a meager $320 million in an attempt to stave away from bankruptcy and bet everything in developing fourth-generation equipment. Called Long-term Evolution or LTE, this next-generation technology was a hoperful creation that could fill patents and lead the way as a technology provider for future markets. That bet today paid off.

By July this year, Apple, Research in Motion, Microsoft and other tech companies, rivals at most, grouped together to pay up $4.5 billion for Nortel’s LTE technology in an attempt to stave off web search company Google. Of course, Google has Motorola under its mobile campaign wing which boasts its own arsenal of intellectual properties.

Kudos to Mike Zafirovski, once thought to be a has-been CEO, is today standing tall and high as he had his company walk away from the 3G market, weather the five-year storms and is now fueling a consortium that wants to buy its IP quadruple what market analysts expected.

Source: Financial Post

Photo by curiouslee at Flickr.com

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