NSN signs 3G networking deal, and aims for 10% profit margin

Mobile Broadband Network (MBNL), a network collaboration JV between T-Mobile UK and 3 UK, has awarded Nokia Siemens Networks (NSN) the contract to be the 3G infrastructure provider for the joint network. The deal will call for NSN to build and operate what MBNL claims will be the largest 3G network in the UK providing near 100 percent coverage by the end of 2009.

Perhaps buoyed by this contact win, NSN's CEO, Simon Beresford-Wylie, has stated that the company is aiming to reach a profit margin of 10 percent by Q4/09, up from nearly seven percent in Q2/08. Beresford-Wylie said that NSN had walked away from potential deals in an attempt to avoid its margins and cash flows from being damaged.

NSN also reported that it had sold its 56.1 percent holding in the Korean telecoms network company Dasan Networks to a group of Korean investors for US$43.5 million. Dasan had been supplying NSN with broadband access equipment and services. Dasan will continue to be an OEM supplier to NSN.

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