NSN sells Wimax unit

Nokia Siemens is selling its Wimax business, in the first of an expected series of divestments under streamlining plans aimed at making the company profitable.
US-headquartered mobile service platform vendor NewNet Communications has agreed to take over NSN’s complete Wimax product portfolio and related assets, in a deal both firms aim to complete by the year-end.
Around 300 NSN staff will transfer to NewNet as part of the deal, aiding the European vendor’s plan to cut 17,000 jobs in a bid to shed €1 billion from operating costs by 2013.
Research firm Ovum suggests NSN’s efficiency drive is designed to bring it financial independence from its parent companies, or attract fresh investors.
CEO Rajeev Suri last week acknowledged the vendor has been burning through cash too quickly, and can no longer expect any more funding injections from parent companies Nokia and Siemens.