Nokia Solutions and Networks (NSN) will be the biggest and most well-known unit inside Nokia following Microsoft's $7.2 billion deal to buy Nokia's handset business. The billions in net cash Nokia is expected to gain from the deal will go a long way toward positioning NSN as a strong network infrastructure company
The billions in in net cash Nokia is expected to gain from its upcoming transactions with Microsoft will go a long way toward positioning Nokia Solutions and Networks (NSN) as a strong network infrastructure and could enable it to make inroads in areas such as self-organizing networks (SON) and software-defined networking (SDN), according to Strategy Analytics.
Nokia's chairman and interim CEO, Risto Siilasmaa, has talked about how emotional it was for Nokia to sell its key devices and services unit to partner Microsoft for around $7.2 billion. However, now that the initial impact of the sale has faded somewhat, in an interview posted on the company's blog, Siilasmaa said he believes "this is the beginning of the next 150 years of Nokia's story."
Microsoft's $7.2 billion purchase of Nokia's devices business is good for the industry and may accelerate the Windows Phone platform, according to a top executive at AT&T Mobility. During the Mobile Future Forward conference, AT&T Mobility CEO Ralph de la Vega said that he thinks the Microsoft/Nokia combination is a positive move.
This week finally provided answers to ongoing questions about the future of Vodafone's 45 per cent stake in Verizon Wireless and Nokia's devices unit. Some industry leaders are worried about the impact these deals will have on Europe's efforts to regain its lost leadership in mobile innovation.
BRUSSELS--Europe has been falling behind in mobile innovation, as illustrated by its low LTE penetration compared to the US, and recent events such as Microsoft's acquisition of Nokia's devices business and Vodafone's sale of its stake in Verizon Wireless will not help the region reverse this situation, according to Telecom Italia CEO Franco Bernabe.
Both the New York Times and AllThingsD have blow-by-blow accounts of Microsoft's decision to pay around $7.2 billion for Nokia's handset business and a license to its patents and mapping software. The nine-month saga began in January in a five-minute call from Microsoft CEO Steve Ballmer to Nokia Chairman and now interim CEO Risto Siilasmaa, according to the reports.
Another day, another million-dollar or billion-dollar deal. At least that's how this week seemed, and it's not even over yet.
Verizon Communications' $130 purchase of Vodafone's 45 percent stake in Verizon Wireless and Microsoft's decision to pay around $7.2 billion for Nokia's handset business were done for both strategic reasons and financial ones. And, as The Verge notes, the financial ones had a lot to do with fears about rising interest rates.
Microsoft's decision to pay around $7.2 billion for Nokia's handset business could put pressure on some of its other major OEM partners, such as Samsung Electronics and HTC, analysts said.