The Swedish telecommunications equipment provider paid $1.13 billion to acquire the majority of the operations providing many operators with 3G mobile voice and data technology. The deal also includes the services and support to Nortel's installed CDMA base. Among Nortel's CDMA customers are large network operators such as Verizon and Sprint.

According to Ericsson, one of the reasons to go even beyond the price span originally planned was that the North America region is likely to emerge as an early adaptor for the 4G mobile data communications technology LTE. 400 of Nortel's 2500 employees in the activities acquired are dedicated to LTE development. With Nortel's patent portfolio being part of the transaction, Ericsson hopes to significantly gain traction in that region after it also has acquired the technical management of Sprint's wireless and wireline network.

In terms of sales figures, the move directly widens Ericsson's business in that region. In 2008, Nortel achieved sales of about $2 billion with its CDMA operations. More or less this sum, adjusted by the effects of the current crisis and by the effect of Ericsson's potential measures will add to the company's own revenue basis of $2.7 billion.

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