Ericsson, Kapsch win Nortel GSM auction

LM Ericsson and another European company on Wednesday won the auction for Nortel Networks' GSM wireless technology business.

Bidders to pay $103M US

LM Ericsson and another European company on Wednesday won the auction for Nortel Networks' GSM wireless technology business.

The two companies will pay $103 million US. The insolvent telecom maker said Ericsson and Kapsch, an Austrian company, would split up sales territories between them.

Nortel has auctioned its GSM wireless technology to Ericsson of Sweden and Knapsch of Austria.

Ericsson will sell and service the Global System for Mobile technology in North America and Kapsch will cover Europe, the Middle East and Africa and Nortel's Taiwan GSM businesses.

Nortel expects about 680 of its employees will get job offers from the two companies. Ericsson has a significant research and development operation in the Montreal area, and is expected to use Nortel people and technology to bolster its North American presence.

The sale is subject to court approval, which Nortel plans to seek on Dec. 2.

Ericsson earlier paid $1.13 billion US for substantially all of Nortel's CDMA Business and LTE Access technology, which is used for wireless networks that use a different standard from GSM.

Nortel, a former technology heavyweight, has been selling off its divisions after filing for creditor protection in January.

With files from The Canadian Press