Nokia wants to buy Alcatel-Lucent, seeking growth and integration of fixed and mobile
Nokia and Alcatel-Lucent are in advanced merger talks, the companies confirmed Tuesday following media speculation that a deal was in the works.The talks could still fall apart, but a deal is on the table that would see Nokia acquire Alcatel-Lucent in a stock swap, the companies said.A merger would give the combined entity a broader product portfolio and greater scale, but would bring its own challenges.It makes sense for Nokia, a mobile broadband specialist, to merge with Alcatel-Lucent, which has a strong position in fixed networks, according to Mark Newman, chief research officer of Ovum’s telecoms research business.As mobile and fixed networks become increasingly integrated, not having the latter is becoming a disadvantage for Nokia, Newman said. The growing worldwide popularity of smartphones has increased the focus on mobile networks, but fixed broadband networks are still needed to deliver high-resolution video content and to provide backhaul for Wi-Fi networks in homes. The integration of Alcatel-Lucent’s fixed offering with the best parts of the two companies’ respective mobile offerings could in that regard be a boon for end-users, he said.To read this article in full or to leave a comment, please click here
