OTTAWA, June 20 /CNW Telbec/ - EDC announced today it is providing $300
million towards a $400 million credit facility for Nokia Siemens Networks
(NSN) for the purchase of wireless assets from Nortel Networks, ensuring R&D
jobs remain in Canada.
"Nokia Siemens has been expanding its presence in Canada for many years
and this transaction will further its North American expansion," said Paul
Day, Vice-President, Information and Communication Technology at EDC. "EDC's
participation in this transaction will help ensure that we keep Canadian
know-how and capability in Canada."
Nortel is currently operating under bankruptcy protection. NSN's bid,
which is for the assets in Nortel's wireless division, sets the price base and
starts a court-monitored auction process where anyone can bid for specified
Specifically, NSN is bidding for Nortel's Code Division Multiple Access
(CDMA) and Long Term Evolution (LTE) wireless technology, as well as
intellectual property rights and customer contracts. CDMA is considered a
driving force behind wireless networks. LTE is the next-generation network
that enables fixed to mobile migrations of Internet applications and provides
capacity to support these mobile applications.
"EDC has been working closely with NSN and Nortel on this transaction
from the beginning," said Mr. Day. "One of the guiding principles we had
established was the need for a national interest aspect to our involvement, to
which NSN had to agree."
To that end, EDC's participation in the deal intends to ensure that as
many skilled, professional and R&D jobs as practical remain in Canada.
"We are delighted to have EDC support for this transaction," said Luca
Maestri, Chief Financial Officer of Nokia Siemens Networks. "NSN is committed
to Canada as an important center of excellence for next-generation wireless
NSN, with its headquarters in Finland, is a global leader in
telecommunications systems. It is one of the largest telecommunications
hardware, software, and professional services companies in the world.
EDC is Canada's export credit agency, offering innovative commercial
solutions to help Canadian exporters and investors expand their international
business. EDC's knowledge and partnerships are used by more than 8,300
Canadian companies and their global customers in up to 200 markets worldwide
each year. EDC is financially self-sustaining, a recognized leader in
financial reporting and economic analysis, and has been recognized as one of
Canada's Top 100 Employers for eight consecutive years.
For further information:
For further information: Media contact: Phil Taylor, Public Affairs,
Export Development Canada, (613) 598-2904, email@example.com