Ericsson CEO clueless about fate of Nortel deal

Swedish telecom major Ericsson, whose acquisition of Nortel's wireless business here last month has been challenged by BlackBerry maker Research In Motion (RIM) and Canadian opposition parties, says it is still in the dark about the fate of the deal.

Ericsson was the highest bidder at $1.13 billion at last month's court supervised auction of Nortel's wireless division.

The 124-year-old Toronto-based Nortel, which has been operating under bankruptcy protection since January, is selling its businesses one by one to pay off debtors.

BlackBerry maker RIM, which was shut out of bidding for refusing to sign non-disclosure agreements, and opposition parties say the deal is against "national interest" as it puts sensitive Canadian technology in foreign hands.

Bowing to their pressure, the government asked a parliamentary committee to review the deal.

Top representatives from RIM, Nortel and opposition leaders have already appeared before the committee and the ball is now in the government's court.

Under the Investment Canada Act, the government can review deals if the assets sold are more than $312 million. But the Nortel assets have been valued only at $149 million.

However, BlackBerry maker and opposition parties are dead set against the deal on grounds of "national security".

Ericsson Canada CEO Mark Henderson admitted Friday that he was in the dark about whether the government will review the deal.

"We have met with them openly and tried to give them all the information that they need...and also to submit facts around any concerns around national security. So we are openly discussing with them and waiting for their decision," Henderson said.

Stressing that the takeover of Nortel's wireless business by Ericsson presented no threat to Canada's security, he said: "The provision was really around items like terrorism...(but) this is a company that has been in the country for almost 60 years. We have built some of the biggest telecommunications systems in this country."

Ericsson also bidding for Nortel's wireless business

Sweden's Ericsson has entered the bid to acquire the next-generation wireless business of Nortel.

Toronto-based Nortel, which is selling its various divisions as part of its liquidation plan, will auction its wireless business Friday in New York.

Till now, Nokia Siemens Networks and America's MatlinPatterson Global Opportunities Partners were the two bidders, with Canada's BlackBerry maker Research In Motion (RIM) shut out because of its refusal to sign non-disclosure agreements with Nortel.

The BlackBerry maker has said it is ready to offer $1.1 billion to Nortel for its wireless unit, much higher than Nokia Siemens's starting offer of $650 million and MatlinPatterson's $725 million.

Confirming that it is bidding for Nortel's wireless business, the Swedish telecom giant refused to say how much it is offering to Nortel.

However, reports here put Ericsson's offer at $730 million, making it the highest bidder.

"We will pursue the opportunity to the point that it makes sense,'' Ericsson spokesperson Kathy Egan told the Canadian Press.

"It's an interesting opportunity and we're always looking for ways to create value for Ericsson,'' she said.

Ericsson, which has been a long-time rival to Nortel in the global market as a supplier to phone companies, has a research and development centre in Montreal.

Nortel has not revealed the names of any other bidders for the court-supervised auction Friday. The 127-year-old Nortel, which was once the global telecom equipment maker giant, has been operating under bankruptcy protection since January after posting a $5-billion loss last year.

Ericsson and Redback Announce Another Joint Deal in China; Upgrading Broadband Services for Guangdong Telecom

Redback Networks Inc., an Ericsson company that makes video-centric routers for 75 percent of the world's largest triple-play networks, today announced another joint deal with parent company Ericsson to upgrade the broadband infrastructure for Guangdong Telecom, using Redback's SmartEdge router platform for data, voice and video services.

Guangdong is the flagship carrier of China Telecom and is the largest provincial carrier in China with more than 40 million customers. Under the deal, Redback and Ericsson will help Guangdong Telecom expand its residential and business services for more than 5 million broadband customers. Redback and Ericsson are managing 43 percent of fixed broadband subscribers for telephone carriers in China.

Redback has deployed more than 1,000 routing platforms in 22 of 32 provinces with China Telecom and China Netcom, the two largest wire-line carriers in China. For China Telecom, this includes provincial carriers in Guangdong, Zhejiang, Fujian, Anhui, Hubei, Jiangxi, Yunnan, Shaanxi, Ningxia, Heilongjiang and Tibet. For China Netcom, this includes similar deployments in Shandong, Liaoning, Hebei, Heilongjiang, Jilin, Henan, Shanxi, Inner Mongolia, Zhejiang, Chongqing and Yunnan.

About Redback Networks

An Ericsson company since January 2007 (NASDAQ:ERIC), Redback Networks manages 63+ million broadband access and triple-play subscribers for 75+ percent of the world's largest telephone companies. Redback's multi-service routing platform delivers next generation services such as broadband access, VoIP, IPTV, video-on-demand, and on-line gaming. Redback Networks has more than 500 carrier customers worldwide and is based in San Jose, CA. For more information, visit www.redback.com.

About Ericsson

Ericsson is shaping the future of Mobile and Broadband Internet communications through its continuous technology leadership. Providing innovative solutions in more than 140 countries, Ericsson is helping to create the most powerful communication companies in the world. Read more at http://www.ericsson.com.