TORONTO, CANADA: Insolvent telecom equipment maker Nortel Networks has agreed to sell some of its next-generation packet core network component assets to Japanese electronics manufacturer Hitachi Ltd. for $$10 million.

Included in the deal are software supporting data transfer over existing wireless networks and next-generation wireless technology and the non-exclusive licence of some patents and other intellectual property.

The sale does not include legacy packet core components for Nortel's third-generation Universal Mobile Telecommunications System (UMTS) and Global System for Mobile (GSM) businesses.

The deal requires bankruptcy court approval.

Nortel has been selling off its global operations piece by piece after seeking court protection from creditors in January. Earlier this month, it received approval for a US$521-million bid by Ciena Corp. for its optical networking business as part of an auction.

Last month, Nortel announced its Enterprise Solutions division would be sold to New Jersey-based Avaya for $900 million. Avaya had originally bid $475 million in July but then had to sweeten the offer to win an auction that began Sept. 11 and lasted several days.

Prior to that, LM Ericsson of Sweden agreed to pay $1.13 billion for Nortel's wireless network business, beating out a $650-million stalking horse bid put forward by Nokia Siemens, a joint venture between Finland's Nokia Corp. and Germany's Siemens AG.