According to Business Week, Motorola and Nortel are in talks over combining their mobile network infrastructure units. Nortel is reportedly interested in buying Motorola’s wireless networks division, merging it with its own, and then spinning the unit off.
Motorola has fallen behind rivals Nokia and Ericsson in the race to build 2.5G and 3G networks, even in its US home market. At the same time, the downturn in the network infrastructure market has been more severe and prolonged than many expected.
Given the long-running rumors that Motorola will sell off its semiconductor unit, it’s possible that within a few years the company will be much more closely focused on designing and producing handheld devices.