Feeds

Buh-bye Siemens: Nokia to splash €1.7bn turning NSN into N

Co-owned infrastructure biz actually makes money

Secure remote control for conventional and virtual desktops

Nokia is buying out its network partner Siemens, for €1.2bn in cash plus a half-a-billion loan, putting the Finnish firm in sole control of the infrastructure business.

Ownership of Nokia Siemens Networks (NSN) is split equally between the companies, and managed to turn a thin profit last year following repeated rounds of cost-cutting.

Nokia will leave management - and staff - intact and won't be slimming the business down beyond the existing plans, but it will take complete control once the transaction has completed.

NSN was set up in 2007 to help both companies compete in an increasingly commoditising market, but such arrangements are inevitably fissiparous as market conditions change.

In recent years Chinese competitors Huawei and ZTE have undercut the relaxed infrastructure oligopoly, flooding expansion markets such as Africa and India with kit priced suspiciously below what established players can offer.

Nokia's skill with radio is unmatched, in your correspondent's humble opinion, but that hasn't helped it compete with the iPhone in the mobile business. So the commoditisation of network components has made it difficult to differentiate.

The solution is to focus on cutting-edge technology, serving markets prepared to pay a premium for experience. Or, as CEO Stephen Elop puts it: "Nokia Siemens Networks has established a clear leadership position in LTE, which provides an attractive growth opportunity".

Nokia has plenty of cash to buy out Siemens. At the end of March there was €10.1bn in readies knocking about, and €4.5bn of that isn't earmarked for anything important, so the time is right.

Those numbers are trending downwards, as the company waits for its gamble on Windows Phone to pay off, but if NSN can be kept in profit then it might even give Nokia a little more time at the table. ®

Protecting against web application threats using SSL

More from The Register

next story
Brit telcos warn Scots that voting Yes could lead to HEFTY bills
BT and Co: Independence vote likely to mean 'increased costs'
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
New 'Cosmos' browser surfs the net by TXT alone
No data plan? No WiFi? No worries ... except sluggish download speed
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Blockbuster book lays out the first 20 years of the Smartphone Wars
Symbian's David Wood bares all. Not for the faint hearted
Bonking with Apple has POUNDED mobe operators' wallets
... into submission. Weve squeals, ditches payment plans
This flashlight app requires: Your contacts list, identity, access to your camera...
Who us, dodgy? Vast majority of mobile apps fail privacy test
Apple Watch will CONQUER smartwatch world – analysts
After Applelocalypse, other wristputers will get stuck in
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.