Nokia has announced that it is selling off its modem business in an effort to refocus on its core offerings. Those core offerings are presumably its handset business, which has been lacking of late.
Nokia will sell its LTE, HSPA, and GSM modem operations to Renesas Electronics. Renesas has been licensing the Nokia modem since 2009. Renesas says that the purchase will make it one of the leading chipset vendors in the 3D and LTE market.
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Renesas and Nokia will continue to develop new modem technology together. The deal is worth about $200 million and is expected to close in Q4 2010. The deal does have to go through regulatory approval.