Nokia spurns Sanyo CDMA deal

Nokia is shelving plans to set up a CDMA factory with Sanyo, blaming its decision on an ongoing restructuring programme that is expected to save the company €150m (£103m). 

The two companies first announced the deal to set up a CDMA device company on 14 February 2006.

However, Nokia has decided that the terms and conditions of the proposed partnership were not satisfactory nor in the best interests of its long-term success.

"We feel it would not be in our best interests to make an agreement that proved to be less beneficial than originally anticipated," said Kai Öistämö, executive vice president for mobile phones at Nokia.

"After exploring all available opportunities and making every effort to create a sustainable CDMA business, this is our only viable option."

The company admitted that the emerging CDMA markets were looking more challenging than first expected.

"Nokia intends to selectively participate in key CDMA markets, with a special focus on North America," said the company in a statement.

Nokia will also reduce its own CDMA manufacturing and research and development by April 2007.

See also:

First dual-mode WiMax and CDMA phone revealed

Samsung dual-mode slider phone supports CDMA and WiBro  21 Jun 2006

Future phone puts Nokia in the picture

Art student designs phone that doubles as a picture frame  14 Jun 2006

Nokia extends mobile search service

Service now offered in Denmark, France, Italy, Norway and Spain  01 Jun 2006

Nokia expands GSM network in China

First time in Sichuan  21 May 2006

Europe sees first W-CDMA 900MHz calls

Nortel, Qualcomm and Orange show off proof of concept  24 Jan 2006

Nokia and Kyocera settle patent dispute

Two-year intellectual property spat finally resolved  10 Jan 2006

Airbus hangs up on CDMA phones

No connection at 30,000 feet for most US users  14 Jul 2005

Like this story? Spread the news by clicking below:

 del.icio.us     Digg this     reddit!