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For Nokia Siemens, winning the wireless assets could help rev up its North American business, where it’s secured just a few contracts. On July 20,ugg australia boots, the joint venture said it had won a deal to build a wireless network in Canada for phone company Globalive Wireless. Nortel’s longstanding relationships with wireless carriers could help Nokia Siemens win larger deals for next-generation wireless networks, including those based on LTE. "They are interested in getting an installed base and relationships with carriers," says Ronald Gruia, a principal analyst at consultant Frost &amp,ghd iv mini styler; Sullivan.

If the bidding for Nortel’s wireless business reaches $800 million, it would indicate other units may fetch 40% of their annual sales as well—a richer proposition for Nortel’s creditors than the 30% Wall Street originally figured on. Some divisions could be worth even more. An $800 million wireless sale could also value all Nortel’s assets at $2.6 billion, vs. analysts’ initial estimates of $2 billion.

One bidder, private equity firm MatlinPatterson Global Advisers, has bid $725 million for the wireless assets and says it will participate in future auctions if it wins this one. Another, Nokia Siemens Networks, has bid $650 million, and may be willing to pay up to $800 million, according to Richard Windsor, an analyst with Nomura Securities. Nokia Siemens spokesman Ben Hunt says the company’s bid "represents the best long-term value for Nortel customers, employees, and other stakeholders."

Nortel's Remnants: Up for Grabs

On the morning of July 24, bidders will assemble at the offices of a New York law firm to compete for parts of bankrupt Nortel Networks’ wireless telephone equipment business.

Revving Up in North America

Saving Jobs a Factor

For sale this month are Nortel businesses that produce equipment for wireless networks based on so-called Long-Term Evolution and Code Division Multiple Access technologies, used by carriers including Verizon Wireless to carry voice and data signals. Sales of CDMA gear are declining as carriers migrate to faster LTE and other next-generation infrastructure. But CDMA can be a cash cow, yielding profit margins as high as 20%, as it requires little research and development investment to maintain, says analyst Windsor.

It’s the first of several upcoming auctions of Nortel’s (NRTL.Q) businesses, and the winner,Discount North Face Shoes, likely determined by the end of July, will snare several networking technologies carriers use to transport data and phone calls. Depending on who wins, some buyers may stick around to compete for four other Nortel units up for sale.

The final determination about who gets Nortel’s wireless businesses won’t be based solely on the highest bid. Nortel will make a recommendation after the auction closes, likely on July 24, based on criteria including saving its workers’ jobs. On July 28, a judge at the U.S. Bankruptcy Court for the District of Delaware will decide on which bidder should get the assets. A similar hearing in Canada is scheduled for July 30.

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