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Why RIM Would Bid on Nortel

3:00 PM -- BlackBerry 's desire to bid up to $1.1 billion for Nortel Networks Ltd. 's Long-Term Evolution and CDMA assets may seem a trifle strange on the surface: What exactly does a device maker want with an infrastructure vendor's assets?

The reasoning isn't really that obscure, however: RIM wants engineers that understand the orthogonal frequency-division multiplexing (OFDM) technology that underpins both WiMax and LTE (long-term evolution) wireless broadband. The intellectual property that Nortel holds in this area probably wouldn't hurt either.

Consider that RIM is already rumored to have horned in on infrastructure vendor talent before. The BlackBerry maker was said to have hired ex-Motorola Inc. (NYSE: MOT) WiMax engineers this year. (See Moto Job Cuts Weigh on WiMax.)

The company has said before that it plans to take advantage of gloomy market conditions to buy in more technology it needs and to hire more staff. (See RIM Buys on the Downbeat.)

— Dan Jones, Site Editor, Unstrung

FredStein 12/5/2012 | 4:00:13 PM
re: Why RIM Would Bid on Nortel

Perhaps RIM is trying to get Nortel's LTE IPR, that they withheld from NSN. If that IPR has a per device licensing fee, then RIM's move makes a lot of sense.

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