Nokia Siemens lets slip which units will be axed

Details have emerged over which business units Nokia Siemens Networks (NSN) will sell off or close down. The company, which announced a 23 per cent headcount reduction last week, gave only an outline of information at the time on which units would be sold or shifted into "maintenance mode". However, internal communications seen by Mobile Europe point towards NSN's putting a number of units up for sale or put into tick-over.

Information provided to NSN employees outlines how each business unit is viewed by the company's management by categorising them into lead, attach, adapt and exit or maintain. Mobile Europe claims that those in the lead category include mobile broadband and customer experience management. Those with an attach rating are named as the care and network management units of NSN's global services arm. Adapt has optical networks, managed service and the consulting/integration units of global services. A wide range of units have been labelled with an exit or maintain rating, and include perfect voice (fixed-line VoIP), broadband access, WiMAX, narrowband, carrier Ethernet, business support systems (BSS), and communications and entertainment solutions.

Commenting on the radical restructuring, CEO Rajeev Suri said that the company would benefit from this focussed strategy, and expected other firms would be forced to mimic NSN's actions. Suri added that investing R&D in a particular sector where NSN is not either first or second by market share would be difficult to justify.

"We are the first company to decide to focus on this sector [mobile broadband] while others remain committed to that [end to end approach]. The industry does not any longer allow for end to end players to be successful. So, this gives us a clear opportunity to differentiate."

For more:
- see this Mobile Europe article

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