Motorola, Nortel in wireless infrastructure talks...

Source: IDG

Nortel Networks on Monday declined to comment on a news report that the company is negotiating with Motorola to combine wireless infrastructure units.

"Nortel doesn't comment on rumors and speculation," a Nortel spokesman said.

The two companies are talking as a way to cut costs in a network equipment market that is consolidating and facing stiff competition, The Wall Street Journal reported Monday.

The deal with Nortel would be separate from Motorola's announcement last month that it was considering spinning off its mobile handset business, the Journal reported. Motorola on Jan. 31 announced it was looking at separating the lagging handset division from the rest of its business.

A Motorola spokeswoman wasn't immediately available for comment Monday.

A combined wireless infrastructure unit would have sales around US$10 billion, the Journal reported. Talks between Motorola and Nortel have been going on for about a month, the news report said, and under one scenario, Nortel would own a majority of the joint venture.

Both companies have faced challenges recently. Motorola last month reported a loss of $49 million for 2007, due largely to declining handset sales.

But fourth-quarter 2007 sales were up in the Home and Networks Mobility group, which makes set-top boxes and wireless infrastructure. The group saw sales rise 11 percent to $2.7 billion from the fourth quarter of 2006.

Last year, the U.S. Securities and Exchange Commission charged seven former Nortel executives with participating in a 2003 accounting fraud by manipulating reserves to manage Nortel's earnings.

Last February, Nortel announced it would lay off 2,900 employees and move another 1,000 jobs to low-cost locations throughout 2007 and 2008.

Padmasree Warrior, fills vacant CTO role at Cisco

Motorola deadwood - Padmasree Warrior - the former Motorola chief technology officer has been appointed to the vacant CTO role at Cisco last held by Charlie Giancarlo.

The Cisco CTO position had languished for more than 2 years, ever since Giancarlo was promoted to Cisco chief development officer in July, 2005.

Warrior blogged on Cisco's website today:

It is an exciting time to join Cisco.
Cisco is the company whose leadership legacy defines "The Network" in many ways. Today, it is a company driving many new paradigms in communications and information technology. In the future, it will be a company poised to lead the industry to the next phase of Internet evolution.

What are some of the characteristics of solutions driving the next wave of Internet evolution?

We already see many precursors for this such as, Collaboration, Web 2.0, and Always-on Demand. Cisco has been at the forefront of this shift, where the network becomes the platform to deliver the next wave of applications and services.

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I am eager to bring to Cisco my technical expertise, over 20 years of experience in many aspects of the communications industry, a global bent of mind and an energizing leadership style.

As we get to know each other, you will also see me as a tireless champion for innovation and inclusion. I enjoy envisioning and creating the future, and leveraging technology leadership for business growth.

Expertise, experience, energy - these exemplify my platform for achievement.

This Platform Paradigm draws me to Cisco.

As I begin my journey here, I look forward to working with the talented and well-respected team at Cisco.

I am eager to tackle the challenges in the continued development and implementation of Cisco’s vision and technology strategy.

Together, we will explore and engage in new technology directions and business growth.