Nortel defends CDMA/LTE asset sale
In a statement today, Nortel defended the sale of its CDMA business and Long Term Evolution access assets to Ericsson, saying it’s a good deal for Canada.
“It preserves the most number of jobs and puts these important assets in the hands of a global leader for sustained growth,” Nortel said in its statement, which coincided with an appearance before the Canadian House of Commons Standing Committee on Industry, Science and Technology this morning.
The emergency meeting was called to bring clarity to the auction process. Officials from Industry Canada, Ericsson and Mike Lazaridis, president and co-CEO of BlackBerry-maker Research In Motion (RIM), attended the meeting, according to The Canadian Press.
RIM, based in Waterloo, Ontario, made a failed bid for Nortel assets and complained that it was shut out of the auction process. Ericsson won the assets with its $1.13 billion bid.
Nortel points out that courts in both Canada and the United States oversaw the sale process and found it was properly followed, and the courts OK’d the sale.
Nortel also said the sale to Ericsson does not pose a concern with regard to any issue of national security, and in the last 10 years, Nortel has not been able to use federal R&D tax credits to fund CDMA and LTE technology development in Canada. In fact, Nortel suffered cumulative tax losses since 2001.