Fixed and WiMAX networks among NSN's casualties

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Fixed and WiMAX networks among NSN's casualties

Details of its cutbacks leaked, as it refocuses on mobile broadband, warning that rivals will have to do the same

By CAROLINE GABRIEL

Published: 28 November, 2011

Following Nokia Siemens' shock announcement that it is to cut 23% of its global workforce, details have leaked about where the axe will fall as the firm looks to lose 17,000 jobs and streamline its operations.

In its official statements, it just said it aimed to focus more precisely on mobile broadband, services and customer experience businesses. But Mobile Europe obtained a leaked internal memo, in which CEO Rajeev Suri specifies which of the other units are under threat. The document says NSN may "exit or maintain" a range of activities including "perfect voice (fixed line VoIP), broadband access, WiMAX, narrowband, Carrier Ethernet, business support systems (BSS), and communications and entertainment solutions (CES)",including the Ubiquity IPTV middleware/services platform. The memo says these will be "targeted for exit (possibly through divestment) or put in maintenance mode".

In the press conference to announce the plans, Suri said he believed other vendors would have to make similar moves, because the end-to-end telecoms infrastructure approach no longer worked. "We are the first company to decide to focus on this sector (mobile broadband) while others remain committed to that end to end approach," he said. "The industry does not any longer allow for end-to-end players to be successful. So this gives us a clear opportunity to differentiate."

Indeed, Alcatel-Lucent has also divested several businesses as part of its own extensive reorganization but NSN has been moving more rapidly than most to focus on the software aspect of mobile broadband, putting high levels of intelligence and traffic management onto commoditized base station and core network platforms rather than differentiating on expensive hardware. It recently agreed to sell its microwave transport business to DragonWave.

Analysts at Current Analysis said in a research note that the lead businesses at the new-look NSN will be mobile broadband and customer experience management, while global services with be an 'attached' business - moving forward alongside the leads. 'Adapted' businesses will include managed services, consulting and systems integration, all of which will be adapted to the new structure.