Hot Topic: Motorola in Motion

By  Mike Cole

Nokia Siemens Networks announced July 19 that it had agreed to pay $1.2 billion for the majority of Motorola's network equipment business.

In a joint statement, the companies said they expect the deal to close by the end of 2010.

For Motorola, the deal frees it to devote more attention to the enterprise mobility unit that makes communications equipment for public safety agencies and industrial companies.

Motorola was already preparing to split into two independent, publicly traded companies in the first quarter of 2011.

Its mobile phone and television set-top box units will form one company called Motorola Mobility under the leadership of co-CEO Sanjay Jha.

The enterprise mobility and networks businesses were set to form the other company, called Motorola Solutions, to be headed by co-CEO Greg Brown.

However, with its sale of assets to Siemens, Motorola Solutions will now consist of just enterprise mobility.

The enterprise mobility unit of Motorola which will become Motorola Solutions also focuses on bar-code scanners, RFID, and other types of communications gear for industries including logistics, transportation, and retail.

Brown says the sale of networks "will allow us to sharpen our strategic focus on providing mission and business critical solutions for our government, public safety, and enterprise customers."

Jha agrees, "As we continue to execute on our business strategy, we are in a strong position to continue improving our share in the rapidly growing smartphone market and improving our operating performance."

Motorola said in its announcement that a drive to improve productivity, cut costs, and grab advanced mobile technologies will spur sales.