More CTIA Convention News – Motorola Handsets – Missing In Action

Implications: As restructurings go, no telecom restructuring has drawn as much attention in the mainstream press than Motorola’s handset business restructuring. However, restructurings are all about making tough decisions to salvage the core value of the company to investors.

Analysis: It is a shame that Motorola is now being forced to consider either selling off its handset business or create a wholly separate handset company.

There is no doubt in my mind; the wireless industry owes a debt of gratitude to Motorola.  However, times have changed and devices are rapidly becoming throw away devices; aka COMMODITIES.  This is the price you pay when you mass produce product in order to ensure mass market penetration.  It is what it is.

I do not think this is the end of Motorola but rather the beginning of something new for the company.  Up until its most recent financial crisis, Motorola was known for its RF expertise as well as its expertise in handheld devices (i.e., cell phones).

Unfortunately for Motorola, it is facing the same kind of complex restructuring challenge that Sprint is facing.  They are both public companies with new CEOs getting their heads handed back to them on a daily basis.

Splitting off the handset division as distinct publicly traded vehicle will give both division access to public cash.  In other words it’s a good idea.

Separating the divisions creates more investment opportunities.  The separation can also lead to greater innovation for both divisions.  Maybe now the company’s network signaling group can finally pull itself together.  In this case, 1 divided by 2 equals 2 opportunities to make money.

I am sorry to say that I agree with pundits, it is the end of an era.  However, we can at least still say that Motorola is still in the radio game.