Nokia agrees to acquire Alcatel-Lucent for $16.6 billion

Alcatel-Lucent is not to be confused with Alcatel OneTouch, which is now owned by China's TCL Communication. The former makes equipment that is used in telecommunications infrastructure, while the latter makes phones, tablets and smartwatches that run on Android.

Nokia has dabbled in the world of hardware post Microsoft's acquisition of its devices unit with the Nokia N1, an Android tablet made in collaboration with Foxconn, but the acquisition of Alcatel-Lucent will not be to further the manufacturer's ambitions in this field. What is allows Nokia to do is consolidate its position in the networking equipment segment, and to challenge the likes of Ericsson. Going forward, Nokia has announced that it will be working on key technologies including "5G, IP and software-defined networking, cloud, analytics as well as sensors and imaging."

The combined company will be uniquely positioned to create the foundation of seamless connectivity for people and things wherever they are. This foundation is essential for enabling the next wave of technological change, including the Internet of Things and transition to the cloud.The combined company will have unparalleled innovation capabilities, with Alcatel-Lucent's Bell Labs and Nokia's FutureWorks, as well as Nokia Technologies, which will stay as a separate entity with a clear focus on licensing and the incubation of new technologies.

The acquisition is subject to several regulatory signoffs, with a final deal expected to close in the first half of 2016.

Source: Nokia

Harish Jonnalagadda
Senior Editor - Asia

Harish Jonnalagadda is a Senior Editor overseeing Asia at Android Central. He leads the site's coverage of Chinese phone brands, contributing to reviews, features, and buying guides. He also writes about storage servers, audio products, and the semiconductor industry. Contact him on Twitter at @chunkynerd.

24 Comments
  • Wow that quote is like buzzword madlibs. Posted via the Android Central App
  • "Internet of Things" and "move to the cloud" irked me the most.
  • It must still be too early for me. I read it as "the latter makes phones, tablets and sandwiches".
  • Nokia is back to its "BUY ALL PATENTS" game.
  • Hoping this means Nokia will start building quality phones again (Even after they partnered with Windows Phone, the hardware was quality), and put Android on them. Quality hardware + android will be good. I wonder how long Nokia had to stay out of the phone hardware post selling to Microsoft?
  • Neither Nokia nor Alcatel-Lucent kept their mobile hardware divisions. This is about networking equipment and patents. Posted via the Android Central App
  • Yeah, misread it. Bother :-( Knew Nokia didn't have the phone section after they sold it to Microsoft, was hoping they were able to reenter the game. Never mind. Back to Snake on my aging 3310 it is...
  • The Alcatel that made phones belongs to China's TLC. HOWEVER, let me answer your doubts: 1 - Nokia's non-competition clause with Microsoft, as per the terms of their deal, expires 31st December 2015; 2 - This deal is between Nokia Networks and Alcatel-Lucent. The Nokia Corporation is comprised of three companies: Nokia Networks, Nokia HERE and Nokia Technologies; 3 - Independently of what Nokia does to Nokia Networks and Nokia HERE, Nokia Technologies remains a separate entity from the Nokia that will own Alcatel-Lucent (as stated in the announcement). Nokia technologies is the division that holds all of Nokia's patents and product R&D teams (including mobile). 4 - Nokia Technologies is the responsible for the Nokia N1. It will also be the responsible for all future Nokia products, regardless of who manufactures them (people are making too much fuss about Foxconn...as if almost every other "OEM" didn't get Foxconn or Compal or a similar company to build the devices for them). So this doesn't affect in any way the plans of Nokia Technologies. The return of Nokia to the mobile phone market will be done through Nokia Technologies. And yes, it will be with full-blown Android.
  • I still say Sailfish Posted via the Android Central App
  • Nope. Via Nexus 6: "Takin updates for granted."
  • Nop. Nokia learned their lesson I believe. Insisting on Symbian and going with WP instead of moving to Android cost them a phone division already. At best they'll pick Sailfish and integrate much of its functionality on their Android skin (like the ambience, some geasture interface, the quick options).
    I don't dislike Sailfish but it can't compete with Android and iOS. WP and Blackberry barely survive, it would be insane. Posted via the Android Central App
  • Q4 of 2016 before they can contractually produce smart phones again. I loved my Nokia Lumia's and to a certain extent loved Windows Phone. But even today there is too much compromise when it comes to features and apps. If they come back with top quality handsets and 2nd to none cameras but put Android on then I'll be front of the queue for one. Nokia have practically said they're working on phones and to just hang in there cos they're coming soon. The N1 tablet is just the start of Nokia's comeback Posted via the Android Central App
  • 31st December 2015 as per the legal terms of the deal. The Q4 2016 thing was taken out of a presentation slide. It said "Nokia can license the Nokia brand for handsets from Q4 2016". Without the context of the presentation this could mean several things:
    1 - That the non-competition clause was extended until the end of Q3 2016 (30th September 2016);
    2 - The licensing of the brand to 3rd parties can only be done from 30th September 2016 onwards, but Nokia itself can use its brand on their handsets before that;
    3 - There was a mistake in the presentation slides and it should read Q4 2015, which means Nokia could present the phones between October-December to be made available on the 1st January 2016. In either case, I'd rather Nokia take their time to product a killer Android flagship device than to rush a return with some uninspired phone. The N1 is a test device. I say, take your time with the N1 and other possible products to put in line all the groundwork before returning to phones.
  • Will we ever get a Nokia android phone? Posted via Android Central App on 1+1
  • You already do... lol Posted via the Android Central App
  • Yes. 2016.
  • that's right!
  • Mariannas web Posted via the Android Central App
  • Nokia running Sailfish in the future? Posted via the Android Central App
  • Very unlikely. If anything, Sailfish may end up as an Android skin.
  • Wishful thinking. One thing for sure is Nokia is not wasting time creating their own Android Launcher for nothing. Posted via the Android Central App
  • Z Launcher is just a first step. I don't expect Nokia's future Android skin to be just that. It will evolve for sure.
    And if they indeed buy Jolla, I would expect integration of the ZLauncher and the Sailfish functionality into one unified skin. Posted via the Android Central App
  • That would be wonderful. Posted via the Android Central App
  • ALU makes all the equipment vzw, att and sprint use in just about all the major areas in north america. That's what Nokia wants, foot print and ALUs 5g patents