Nokia buys out, renames Nokia Siemens Networks

Nokia has finished its buyout of the network-building joint venture

Nokia Siemens Networks CEO Rajeev Suri spoke on Sunday in Barcelona on the eve of Mobile World Congress.

Nokia Siemens Networks CEO Rajeev Suri spoke on Sunday in Barcelona on the eve of Mobile World Congress.

Nokia finished its buyout of Nokia Siemens Networks on Wednesday and renamed the company Nokia Solutions and Networks, or NSN.

Nokia and Siemens formed the company in 2006 as a joint venture focused on wired and wireless infrastructure. But Nokia Siemens had difficulty competing against mobile network giants Ericsson and Huawei Technologies, and in 2011 it launched a restructuring in which it cut 17,000 jobs and narrowed its focus to mobile broadband and related services. Nokia's own problems keeping up in the handset business made the venture's problems worse, analysts said.

Since the restructuring, Nokia Siemens has made a comeback, partly on the strength of LTE carrier deals in the U.S., Japan and South Korea. It has posted strong profits in the past four quarters, Nokia said on Wednesday. For the second quarter of this year, Nokia Siemens made €8 million (US$10.5 billion) while Nokia as a whole lost €278 million.

In July, Nokia agreed to buy back Siemens' share of the company for $2.2 billion and make it a wholly owned subsidiary. The leadership of Nokia Siemens won't change with the buyout. Rajeev Suri will remain CEO and the company's executive board will remain the same, Nokia said.

Nokia has now returned to making both handsets and mobile networks, a combination that several major vendors have given up on. Ericsson, Motorola and Alcatel-Lucent once had both device and infrastructure divisions. Huawei, ZTE and Samsung are still in both businesses.

Stephen Lawson covers mobile, storage and networking technologies for The IDG News Service. Follow Stephen on Twitter at @sdlawsonmedia. Stephen's e-mail address is stephen_lawson@idg.com

Join the newsletter!

Or
Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags mobileMergers and acquisitionsNokiabusiness issuesrestructuringNokia Siemens Networks

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Stephen Lawson

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?