Nokia Siemens wins $7 billion U.S. deal

By Tarmo Virki, European technology correspondent

HELSINKI (BestGrowthStock) – Nokia Siemens Networks (NSN) has won an eight-year contract worth more than $7 billion in the United States, a deal analysts said could be the largest order ever placed in the mobile telecoms gear industry.

Under the agreement, Nokia Siemens Networks (NSN) will build and operate a high-speed wireless network for Harbinger Capital’s new LightSquared venture.

Analysts said the deal, and the acquisition of Motorola’s

network unit announced on Monday, would boost NSN in the North American market where so far it has struggled.

NSN generated just 6 percent of its revenue in the last quarter from the region.

“In the U.S. big operators have so far been skeptical to outsource their business. The deal is a great reference when this starts to change,” said Hannu Rauhala, an analyst with Pohjola in Helsinki.

The deal is subject to final approval by both the Nokia Siemens Networks and the LightSquared boards.

The new nationwide LTE network will consist of some 40,000 cellular base stations and cover 92 percent of the U.S. population by 2015.

LightSquared named former Orange executive Sanjiv Ahuja as its chairman and chief executive, and said it planned to raise up $1.75 billion in debt and equity.

Harbinger Capital Partners and affiliates have invested $2.9 billion in the venture.

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(Reporting by Tarmo Virki; editing by Karen Foster)

Nokia Siemens wins $7 billion U.S. deal