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Not only is Motorola Inc. facing new troubles in its cell-phone operations, but the distress has spread into its set-top box unit, which is bound to give activist investor Carl Icahn more ammo to hammer the Schaumburg, Ill.-based telecommunications gear maker.
Last week blogs and Internet message boards were rumbling with talk about how Verizon Communications Inc.'s FiOS customer service was blaming Motorola for the long wait for new TV service installation. While it's often hard to take anything a customer service rep says at face value, it's worth noting that toward the end of the week the same statements were repeated by other cablers, and now a Wall Street Journal story about FiOS confirmed the rumor with Motorola. The set-top box issues come on top of longer-standing woes with its cell-phone business. Motorola suffered yet another blow there when rival Research In Motion Ltd., the maker of the popular BlackBerry smartphones, sued the company for patent infringement. Motorola has reportedly been considering separating its handset business from the rest of its operations, and also a joint venture with Canadian rival Nortel Corp. Additionally, it's facing a proxy fight with Icahn, who is attempting to install four directors on the company's board. - Matthew Wurtzel See set-top box story from The Wall Street Journal (subscription required) Categories![]() Deal Video
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