Nokia Siemens Networks disposes of units as part of mobile broadband focus
Just this week, Nokia Siemens Networks agreed to sell its business support systems (BSS) and optical networks business units and announced the shutdown of its German network infrastructure services unit--all as part of its effort to focus on mobile broadband.
Nokia Siemens Networks, the networking unit of Nokia (NYSE: NOK) and Siemens (NYSE: SI), Wednesday announced it was selling its BSS unit to Redknee, a provider of business billing and charging software and products. The unit provides charging, rating, policy and customer care products and services to more than 130 communication service providers.
Earlier this week, the firm agreed to sell its optical networks business to Marlin Equity Partners, a technology investment firm. Marlin plans to establish the unit as an independent company with the current management team led by Herbert Merz and its existing global operations. The unit provides long-haul and ultra-long-haul equipment for the optical market with a strong position in the 100G optical transmission area.
And AFP reported that Nokia Siemens Networks is closing down its German network infrastructure services unit by the end of 2013. This could result in the layoff of 1,000 employees at 16 sites in Germany. The NSN Service unit focuses on installation and maintenance of cables, antenna and other passive networking technology.
These moves are the latest in a series of steps designed to turn around the struggling networking joint venture and refocus the company on mobile broadband.
So far this year the company has completed the sale of its IPTV assets to Belgacom and Accenture, its microwave transport business to DragonWave and its fixed-line broadband access business unit and associated assets to Adtran, according to IDG News Service.
DragonWave's acquisition of Nokia Siemens Networks should help DragonWave gain in the competitive market for microwave equipment, which is led by Ericsson (Nasdaq: ERIC).
Nokia Siemens Networks' efforts appear to be turning the firm's finances around. In the third quarter 2012, Nokia Siemens Networks' net sales increased to €3.5 billion in Q3 2012 and it posted an operating profit of €182 million, compared to an operating loss of €114 million in the same quarter last year.