Nokia Siemens Networks has made a number of significant strategic moves in the last several days as its hones its focus on its core 4G smartphone strengths. First, Nokia Siemens today announced its intent to sell its business support systems unit to Redknee. Redknee is paying just under $20 million for the business unit. Nokia Siemens also confirmed that it plans to shut down its Germany-based network operations and management services business. The network management business weighed heavily on Nokia Siemens' bottom line. The closure means about 1,000 people will lose their jobs. Earlier this week, Nokia Siemens Networks agreed to sell off its fiber optic business unit. Nokia Siemens Networks hopes that these changes will help it remain competitive in its core cellular networking business.
Nokia Siemens Networks today announced that it has successfully completed LTE-Advanced trials reaching downlink speeds of 1.4Gbps. In order to achieve this, Nokia Siemens used 100MHz of aggregated spectrum and its Flexi Multiradio 10 Base Station in a lab setting. The company said that the speeds achieved prove that LTE-Advanced is the next step in terms of mobile broadband networks.
Nokia Siemens Networks today announced a new technology for HSPA+ networks that will allow devices to connect to two separate cells at one time. Nokia Siemens says that Multiflow can be used when a device is at the edge of one cell to connect to the neighboring cell simultaneously. The name "Multiflow" was chosen because data flows in two different directions when the device is connected to two different base stations. Nokia Siemens says the technology makes more efficient use of network resources, and delivers twice the data speed and up to 50% faster response times compared to today's HSPA+ networks. Nokia Siemens says that network operators can upgrade from their current HSPA+ deployments to Multiflow with a software usdate at their base stations. Nokia Siemens expects Multiflow to be 3GPP standardized by mid 2012 and launched commercially by mid 2013.
Nokia Siemens Networks has received approximately $1.56 billion in new funding from a collection of European and U.S. banks. Citing a source familiar with Nokia Siemens' plans, Reuters reports that the company sought $1.96 billion in funding, but had to settle for the lesser amount due to current market conditions. Parent companies Nokia and Siemens last year said they would no longer contribute funding to the joint venture, which announced job cuts of 17,000 in November. Nokia Siemens has struggled to compete with rival networking gear makers.
Nokia Siemens Networks has agreed to sell its fixed line broadband access business and associated professional services and network management products to U.S.-based Adtran. As part of the deal, Adtran will acquire all of NSN's fixed broadband businesses, technologies, and customers. It will also assume control over 400 NSN employees, ranging from engineers, to researchers, sales, and professional services. Adtran will use the acquisition to expand its business and global reach. Terms of the deal were not disclosed, and the companies expect it to close by April 2012. NSN recently sold its WiMax business and announced plans to lay off some 17,000 employees during a massive reorganization.
Nokia Siemens Networks today announced the addition of 1X Advanced to its CDMA base station technology portfolio. When fully deployed, Nokia Siemens says that its 1X Advanced technology will allow network operators to improve call quality and coverage, as well as handle thrice the volume of voice and data traffic. Nokia Siemens says the coverage and capacity boost requires only a board upgrade to existing base stations. Last, the new 1X Advanced technology is more energy efficient, which will allow network operators to reduce the cost or running base stations. Nokia Siemens 1X Advanced boards will be available in volume by the end of the year.
Nokia Siemens Networks today announced that it is selling its WiMax business to NewNet Communications. Under the terms of the agreement, NewNet will acquire all of NSN's WiMax products, services, employees, and other assets for an undisclosed sum. NewNet provides wired and wireless networking products, and would gain about 300 Chicago-based employees from NSN. The companies expect the deal to close by the end of 2011. Nokia Siemens Networks is looking for ways to reduce costs, and recently announced plans to cut 17,000 employees from its payroll, as well as freeze some business units.
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 Siemens Networks today said that it is restructuring its business to better focus on the mobile broadband and services markets. As part of the broad reorganization, NSN plans to cut 17,000 employees from its global workforce by the end of 2013. Nokia Siemens has about 74,000 employees today, and the cuts amount to a massive 23% of its total employee base. In order to accomplish this workforce reduction, NSN said it will consolidate facilities and functions, simplify processes, eliminate the company's matrix organizational structure, as well as realize certain synergies with the acquisition of Motorola networking business and technology. "We believe that the future of our industry is in mobile broadband and services - and we aim to be an undisputed leader in these areas," said Rajeev Suri, CEO of Nokia Siemens Networks in a prepared statement. "At the same time, we need to take the necessary steps to maintain long term competitiveness and improve profitability in a challenging telecommunications market." Nokia Siemens Networks' parent companies, Nokia and Siemens, have struggled with defining their joint venture's future, which is set to expire in 2013. They tried unsuccessfully to sell it to investors and abandoned those plans earlier this year.
Reuters today reports that Nokia and Siemens have given up on attempts to sell an equity stake in their Nokia Siemens Networks joint venture. The companies have held talks with various private equity firms over the course of the last 12 months, but they were never able to reach an agreement amenable to all the parties involved. In a statement issued by Nokia and Siemens, the parent businesses said they will continue to support the venture and inject more cash to bolster its strength. Separately, Siemens indicated that it hopes to exit the venture eventually.
According to a report published by the Wall Street Journal, talks between Nokia, Siemens, and private investors over the Nokia Siemens Network joint venture have reached an impasse. Nokia and Siemens have been exploring ways to exit the joint venture, with the preferred option being to sell the company (or a significant portion of it) to private investors. The Journal reports that talks with the last set of investors interested in Nokia Siemens Networks have mostly broken down. The Journal indicated that Nokia and Siemens may attempt to inject more cash into the venture, but Nokia said that the company is still pursuing other ideas. In a statement emailed to Reuters, Nokia said, "Multiple options continue to exist for NSN and these are reflective of the company's performance in terms of both innovation and financial results. We're pleased with the turnaround that NSN is executing, and we remain focused on our plans to bolster NSN's competitiveness even further." Nokia Siemens Networks' uneven financial performance is seen by some shareholders as a drag on Nokia's financial performance, which has also taken a hit due to faltering smartphone sales.
Nokia confirmed today that it and partner Siemens are entertaining bids for their Nokia Siemens Networks joint venture. Siemens also confirmed that bids had been placed, though neither company revealed the names of the private equity companies that are interested in purchasing the joint venture. "There has been unsolicited interest in NSN and we continue to be in constructive talks with multiple parties," said Nokia spokesman Doug Dawson. The partnership between Nokia and Siemens expires in 2013 and the two firms have been weighing options on the networking company's future. A sale to private investors would allow both Nokia and Siemens to concentrate resources on other portions of their respective businesses.
Nokia Siemens Networks today said it has closed its acquisition of Motorola's wireless networking business. The deal met with some resistance from Huawei, but all outstanding issues have been resolved. The deal was first proposed in July 2010.
China's Ministry of Commerce has approved Nokia Siemens Networks' planned acquisition of a slice of Motorola's wireless networking business. The deal, first announced in 2010, has already been approved by U.S. and European regulators and was delayed over intellectual property issues brought up by Huawei. Those issues were settled in recent weeks. China's regulatory body was the last roadblock holding up the deal. The companies said they plan to close the acquisition by April 29.
Nokia Siemens Networks' parent companies, Nokia and Siemens, are mulling plans for the joint venture's life after their current contract expires in 2013. According to sources cited by the Wall Street Journal, they are weighing the possibility of selling a 51% stake in the company to private equity firms. "Our parent companies have stated their commitment to Nokia Siemens Networks, whilst exploring the possibility of private equity taking a stake in the company," a NSN spokesperson said. A Nokia spokesperson said that they are not seeking to sell the entire company. Nokia Siemens Networks has struggled in recent quarters, and is a burden to both parent companies. It has not achieved its primary goal, which was to become a major player in the U.S. market. No final decisions have been made.
Motorola Solutions and Huawei today announced that they've reached an agreement over the transfer of Huawei's intellectual property to Nokia Siemens Networks. Motorola is selling a portion of its wireless networking business to Nokia Siemens. Huawei sued the companies to block the sale, as Huawei feared that Motorola would transfer intellectual property owned by Huawei to its rival Nokia Siemens as part of the deal. The companies have agreed that Motorola Solutions can transfer its commercial agreements with Huawei to Nokia Siemens for a fee. Nokia Siemens may receive and use that intellectual property to service the networks Motorola deployed using Huawei’s products and technologies. The acquisition is still being reviewed by the Chinese Ministry of Commerce, but has received regulatory approval from the U.S. government.