No More Cash from Nokia or Siemens for Network JV
Nokia Siemens Networks CEO Rajeev Suri told company employees in a letter that the company will not receive any more funding from parent organizations Nokia or Siemens. "Our profitability remains far too low, with huge net losses since the start of the company," said Suri. "We continue to burn cash and have consistently generated negative free cash flow. We have too many businesses that have never produced adequate returns and regions that continually deliver losses." Nokia Siemens Networks recently announced plans to reduce its workforce by 17,000, or approximately 23%, in order to save $1.34 billion in costs. Both Nokia and Siemens contributed about $666 million to Nokia Siemens Networks in September. With no more funding on deck, Suri says that the fixed-line VoIP, broadband access, WiMAX, narrowband, carrier Ethernet, business support systems, and communications and entertainment solutions business units will either be cut or put in "maintenance mode."
Nokia Dishes More On Possible Phone Plans
Nokia CEO Rajeev Suri today reiterated that the company would like to return to the phone business, but said it is in no rush. Speaking at the Mobile World Congress trade show, Suri noted that Nokia will not manufacture its own handsets, but will instead license its brand to an outside manufacturer.
Nokia Will Design and License Phones Beginning In 2016
Nokia CEO Rajeev Suri said the company will tackle the mobile phone industry again once its non-compete clause with Microsoft expires next year. Nokia no longer owns any manufacturing facilities and will not make its own phones.
Nokia Confirms Talks to Acquire Alcatel-Lucent
Nokia and Alcatel-Lucent today said they are in advanced talks concerning a merger or acquisition between the two. Such a deal would would produce a massive competitor to Sweden's Ericsson and China's Huawei in the telecommunications market.
Nokia Gains Control of Alcatel-Lucent
Nokia today said it has officially taken the reigns of Alcatel-Lucent after its public exchange offer for Alcatel-Lucent was accepted by the French stock market authority. Nokia expects to merge the two companies in order to form a telecommunications powerhouse to compete against Ericsson, ZTE, and others.