Motorola’s recent decision to demerge its handset and network infrastructure businesses could pave the way for the vendor to sell-off its networks unit, reports the Financial Times. Motorola is planning a group demerger that will result in separate stock market listings for the units early next year. Sanjay Jha, co-chief executive officer of Motorola, will serve as chief executive officer of Motorola’s Mobile Devices and Home businesses, while Greg Brown, fellow co-chief executive officer, will head up Motorola’s Enterprise Mobility Solutions and Networks businesses. However, the report notes that the new structure will enable Brown to either sell the network business, or put it into a joint venture with a rival.“I think the network business will be viable for a very long time. If there is an alternative configuration or partnership which provides more economic value to us, we will consider it,” Brown told the Financial Times.

Bernstein analysts value Motorola’s network business at between US$1 billion to US$2 billion, and – because of the unit’s lack of scale – they predict that it will be sold to a larger rival. China’s Huawei is considered the most likely buyer as it seeks to increase its presence in the lucrative US market, However, while the two firms already have a technology partnership in place, it is thought that a buyout by the Chinese firm could face regulatory problems. Ericsson, Nokia Siemens Networks and Alcatel-Lucent are considered the only other players large enough to make a deal. Motorola has reportedly been looking to sell-off its network business for some time. According to the Financial Times, the unit reported sales of US$8 billion last year, down 21 percent compared to 2008, while operating earnings fell 39 percent to US$558 million.