IWCE: EADS to purchase Nokia’s TETRA assets

LAS VEGAS–EADS announced it plans to acquire Nokia’s TETRA assets. EADS expects the transaction to be completed in the fourth quarter of 2005, pending regulatory approvals, said Peter MacLaren, the company’s president of public safety.

EADS has competed with Nokia in Europe in recent years with products based on its TETRAPOL standard. While use of TETRA-compliant systems is more widespread, the majority of large installations–typically nationwide systems–are TETRAPOL-based, said MacLaren. “This ends the battle between technologies A and B,” he said.

MacLaren added that the acquisition not only would eliminate the competition but also would make EADS a stronger global player. “EADS will be similar in scale to Motorola,” he said.

All the Nokia employees affected by the acquisition will transfer to EADS, and most will “stay where they are,” MacLaren said. The majority of transferring employees are in Helsinki, where Nokia is headquartered.

MacLaren stressed that the acquisition would have no effect on EADS’ commitment to the Project 25 standard in the U.S.