Motorola restructures telco business

MOTOROLA IS TO RESTRUCTURE its home and networks mobility unit into three separate businesses.

While it had been known that the outfit plans to separate the handset business, which has been hurt by a two-year-long fall in mobile phone sales, the Wall Street Journal thinks the restructuring will cut deeper.

It looks like the handset division will be sliced away and the home and networks business divided into three.

The home and networks business flogs TV set-top boxes, digital video recording equipment and modems, as well as network gear such as data and voice equipment for telecom service providers.

It is starting to look as if some of these businesses might also be flogged. The division has done quite well and posted a two per cent increase in fiscal first-quarter sales to $2.4 billion.

Motorola has refused to comment on the WSJ's article. µ

L'Inq
AP