Motorola had already said it would split in two in the first quarter, creating Motorola Mobility, which will sell mobile phones and television set-top boxes, and Motorola Solutions, which will sell wireless gadgets such as walkie-talkies to government organisations and businesses.
Motorola is splitting after years of losses at its mobile phone business, which, until recently, had a tough time coming up with products that were competitive with rivals such as Apple Inc and Research In Motion Ltd. Co-CEO Sanjay Jha will head Motorola Mobility unit.
Motorola Solutions also said revenue at its proprietary iDen network equipment business would fall to $300 million in 2011 from $400 million in 2010. It expects to have an investment-grade rating at separation and vowed to consider dividend payments after the split.