Nortel is to sell some of its next-generation (LTE) packet core assets to Japan’s Hitachi for US$10 million. According to a statement from the troubled Canadian vendor, the deal excludes legacy packet core components for Nortel’s GSM and UMTS businesses but includes software “to support the transfer of data over existing wireless networks and the next generation of wireless communications technology, including relevant non-patent intellectual property, equipment and other related tangible assets, as well as a non-exclusive license of certain relevant patents and other intellectual property.” The sale is expected to close by the end of the year, subject to approval by the relevant authorities.

Nortel’s LTE packet core assets business is one of the last remaining units at the company. Since filing for Chapter 11 bankruptcy protection at the beginning of the year, Nortel has sold CDMA and LTE access assets to Ericsson for US$1.13 billion as well as its enterprise business to Avaya for US$915 million. Nortel is also looking to sell-off its majority stake (50 percent + 1 share) in LG-Nortel, its South Korean joint venture with LG Electronics, whilst it also plans to sell its GSM and GSM-R (GSM for Railways) businesses by auction.