Light Reading
Acquisition of the DAS company will strengthen Nokia's infrastructure play - particularly in indoor enterprise environments - in the US.

Nokia Buys SAC for Better Indoor Wireless in the US

Sarah Reedy
7/2/2014
50%
50%

Nokia is looking to beef up its infrastructure play in the US with the acquisition of Schaumburg, Ill.-based indoor wireless specialist SAC Wireless, announced on Wednesday.

Terms of the deal were not disclosed, but Nokia Corp. (NYSE: NOK) said in a statement that it expects it to close in the third quarter of 2014. The newly handset-free infrastructure vendor is hoping to use SAC's infrastructure expertise to strengthen its presence in the North American RAN market. (See Nokia CEO Must Channel Fighting Spirit.)

SAC designs, installs and maintains indoor and outdoor distributed antenna systems (DAS) for better wireless coverage in stadiums, hospitals, government facilities, and enterprises. The company claims all the major US wireless operators among its customers. (See Must Haves for the Big Game? DAS & WiFi.)

Nokia already has a relationship with Sprint Corp. (NYSE: S) here, but like competitor Ericsson AB (Nasdaq: ERIC), wants to get in closer with AT&T Inc. (NYSE: T) and Verizon Wireless . Current Analysis analyst Ed Gubbins says the SAC acquisition should help boost Nokia's presence in North America and offer a way to deepen their relationship with the Tier 1s despite not having LTE basestation contracts with AT&T or Verizon. (See AT&T, Verizon Mulling Managed Services With Ericsson and Sprint Sparks Up Vendors for Faster 4G LTE.)

The deal helps Nokia's US presence in mobile broadband infrastructure, Gubbins says, but, more specifically, it boosts its capabilities in indoor enterprise network deployment services. The analyst says this is "highly relevant to the small-cell opportunity that's ramping up now and relevant to AT&T and Verizon in particular, which are both rolling out small cells." (See NSN to Take Its Flexi Zone to Work and AT&T Gets 'Opportunistic' With 4G Small Cells.)

Like Nokia's recent Mesaplexx buy, both purchased with fresh cash from Microsoft Corp. (Nasdaq: MSFT), the SAC acquisition was all about Nokia's existing core business, not extending its capabilities, something Ricky Corker, executive vice president of North America for Nokia Networks, acknowledged in announcing the acquisition. (See Nokia Buys RF Smarts to Shrink Basestations and Microsoft Officially Closes Nokia Buy.)

"With SAC Wireless' capabilities complementing our own in-house expertise, we are well positioned to bring enhanced quality and increased end-to-end delivery efficiency to our customers," he writes in the release. "No other infrastructure provider is offering this level of proven services."

This is far from the only acquisition announced in July, just two days in. Interestingly, CommScope Inc. is also looking to beef up its indoor enterprise play and just yesterday announced the acquisition of two business units from a small UK-based provider of small cell services, Alifabs Group. (See CommScope Acquires UK Wireless Specialist, Spirent Spends $25M on Radvision VoLTE Unit, Google Adds Songza to Its M&A Playlist, and EZchip Strikes $130M Deal to Buy Tilera.)

The M&A flurry is in large part a response to the complexities around indoor deployments -- acquiring sites and permits, backhauling small cells, mitigating interference, and business models -- are all challenges network operators are working through now. (See Indoor Market Driving LTE Small Cell Push.)

Nokia says SAC's 450 employees and its expertise in site development, "self-perform" implementation of indoor and outdoor small cells and DAS, and program management will complement its in-house capabilities to implement these typically sub-contracted services.

— Sarah Reedy, Senior Editor, Light Reading

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
danielcawrey
50%
50%
danielcawrey,
User Rank: Light Sabre
7/5/2014 | 12:20:57 PM
Re: Nokia's NICE!
Seems like indoor wireless is a tough proposition. I can see how places like malls might not be a problem because there is likely one owner, but what about office buildings/complexes? Also, some may be concerned about using these indoor signals because of privacy reasons. 

Just a few things to think about...
SReedy
50%
50%
SReedy,
User Rank: Blogger
7/3/2014 | 9:36:26 AM
Nokia's NICE!
Nokia has made another acquisition to bolster its infrastructure business today. http://www.lightreading.com/spit-(service-provider-it)/oss/eurobites-nokia-buys-3d-network-planning-tool/d/d-id/709733?  It's burning through Microsoft's cash pretty fast! 
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Interviews
Liberty Global Sees Business Goldmine

12|18|14   |     |   (0) comments


Steen Sorensen, VP of business services for Liberty Global, explains where the giant international MSO sees growth potential.
LRTV Documentaries
EE: The Road to 5G

12|16|14   |   16:02   |   (1) comment


Andy Sutton, the principal network architect at UK mobile operator EE, explains how his company is using Wembley stadium as a wireless test bed and how that's helping EE to plan the evolution to 5G.
LRTV Huawei Video Resource Center
Highlights of Huawei's NFV Open Cloud Forum 2014

12|16|14   |     |   (0) comments


Huawei hosted its inaugural NFV Open Cloud Forum during the SDN & OpenFlow World Congress 2014 in Düsseldorf, Germany. The Forum brought together technology thought leaders, senior executives and telecom professionals from global carriers, industry associations, as well as other partner companies in the ecosystem, to exchange views on and collectively explore how ...
LRTV Custom TV
Realizing Operators' Digital Vision

12|16|14   |   5:23   |   (0) comments


Leveraging technology is fundamental to digital transformation but understanding customers and serving them really well is at the heart of digital businesses. TM Forum lists the following as the strategic pillars of the digital business: business agility and rapid innovation, operational agility and effectiveness, IT and data centricity, plus customer centricity. ...
LRTV Documentaries
US Cellular Injects Analytics Into LTE

12|16|14   |   2:57   |   (1) comment


US Cellular's Mario Vela explains how the operator uses analytics for network planning and what comes next as the carrier looks to eke more value out of its metrics.
LRTV Interviews
How Cox Biz Plans to Keep Growing

12|15|14   |     |   (1) comment


Steve Rowley, SVP of Cox Business, details how the third-biggest US MSO intends to boost its revenues to $2 billion and beyond over the rest of the decade
LRTV Huawei Video Resource Center
Interview With Bill Zhang, Director of SoftCOM Product Management, Huawei

12|15|14   |   2:50   |   (0) comments


Bill Zhang elaborated on Huawei's open philosophy in NFV solution development and network architecture design at the SDN & OpenFlow World Congress 2014.
LRTV Huawei Video Resource Center
Event Highlights: Huawei at SDN & OpenFlow World Congress 2014

12|15|14   |   3:43   |   (0) comments


Huawei joined the 2014 SDN & OpenFlow Congress as one of the key sponsors and contributors. At the event, Huawei reinforced the openness and flexibility of its network infrastructure strategies, and provided updates on its SDN and NVF innovations. Through participations at the exhibitions, forums and speeches, Huawei encouraged the industry to "think bigger and ...
LRTV Interviews
How Cable Biz Services Hit $10B Mark

12|12|14   |     |   (1) comment


Cable operators reached $10 billion in annual business services revenues by delving deeper into their vertical markets and expanding beyond the smallest firms.
LRTV Documentaries
Mediacom Aims to Test Connected Tractors

12|11|14   |   05:07   |   (3) comments


Cable business service provider is taking its services to the 'agribusiness' sector in partnership with farm equipment specialist John Deere and is getting involved in Gigabit Cities developments.
LRTV Interviews
TWC Business Looks Beyond $3B

12|10|14   |     |   (0) comments


TWC Business Services chief Phil Meeks explains how his unit has reached $3 billion in annual revenues and what its plans are for next year.
LRTV Documentaries
AT&T's New Security Strategy

12|10|14   |   02:36   |   (1) comment


AT&T's Chief Security Officer Ed Amoroso explains how his company is wrapping virtual security layers around micro network domains.
Upcoming Live Events
February 10, 2015, The Westin Peachtree Plaza, Atlanta, GA
March 17, 2015, The Cable Center, Denver, CO
April 14, 2015, The Westin Times Square, New York City, NY
May 6, 2015, McCormick Convention Center, Chicago, IL
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Hot Topics
Vodafone to Ride T-Mobile Back Into US
Dan Jones, Mobile Editor, 12/12/2014
1-Gig: Coming to a Small Town Near You
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 12/17/2014
T-Mobile, BlackBerry Flirt With Reuniting
Sarah Reedy, Senior Editor, 12/17/2014
Gardner's Departure a Cautionary Tale
Carol Wilson, Editor-at-large, 12/12/2014
T-Mobile Lights Up 27 Wideband LTE Cities
Sarah Reedy, Senior Editor, 12/15/2014
Like Us on Facebook
Twitter Feed
Upcoming Webinars
Webinar Archive