Motorola is paving the way for a possible sale of its mobile network infrastructure business, but is also interested in forming a joint venture with a rival.
The US mobile phone maker is planning a group demerger that will result in separate stock market listings for its handset and infrastructure businesses early next year.
Greg Brown, Motorola co-chief executive, is to lead the company that will consist of the group's units that make network infrastructure and mobile radio equipment for the emergency services.
Mr Brown has decided he will run the two units separately, in a move that could give him the ability to sell the network business, or put it into a joint venture with a rival.
China's Huawei Technologies is the obvious suitor, although any transaction risks encountering opposition from Washington lawmakers.
Bernstein analysts value Motorola's network business at $1bn to $2bn, and because of the unit's lack of scale, they predict that it will be sold to a larger rival.
However, Mr Brown told the Financial Times: “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.”
There are just four major manufacturers of mobile network equipment: Ericsson, Huawei, Nokia Siemens Networks, and Alcatel-Lucent.
Huawei is keen to increase its sales in the US. Huawei and Motorola already have a working relationship after setting up a partnership in 2006 in order to focus on the development of network equipment based on third generation wireless technology.
Motorola's network business is currently part of a unit that also makes television set top boxes.
The unit reported sales of $8bn last year, down 21 per cent compared to 2008. Operating earnings fell 39 per cent to $558m.