Nokia takes full control of NSN stake for $2.22 billion
After months of speculation, Nokia has agreed to buy out Siemens' stake in Nokia Siemens Networks for US$2.22 billion. With the rise of cost competing vendors Huawei & ZTE and top dog Ericsson in the multi billion dollar telco industry, NSN struggled to gain a foothold in the recent years.
Trimming out Siemens might be a good idea, as Nokia holds a significant amount of LTE patents. With a strong telecom equipment offering, a sleuth of new LTE contracts and a wide portfolio of phones, Nokia could basically provide end to end solutions 😀
So, how would this play out for Nokia on the long run? Can they take advantage of this or would Elop flop this opportunity?
Source: #-Link-Snipped-#
Trimming out Siemens might be a good idea, as Nokia holds a significant amount of LTE patents. With a strong telecom equipment offering, a sleuth of new LTE contracts and a wide portfolio of phones, Nokia could basically provide end to end solutions 😀
So, how would this play out for Nokia on the long run? Can they take advantage of this or would Elop flop this opportunity?
Source: #-Link-Snipped-#
Replies
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Kaustubh Katdare#-Link-Snipped-# : It seems to me that this is a pure business decision and the buyout doesn't offer any technical advantage to Nokia over its rivals, right? I'm not sure why'd Nokia benefit from operating LTE networks? Their forte is mobile hardware (and software to some extent). -
Ashraf HZ
Yes, more business to an extent. As one of the top 5 telco equipment vendors, they have access to a multibillion dollar industry. With 2012 revenues of nearly $17 billion, it provides much needed revenue stream for Nokia.Kaustubh Katdare#-Link-Snipped-# : It seems to me that this is a pure business decision and the buyout doesn't offer any technical advantage to Nokia over its rivals, right?
Though as a telco vendor, as evident from their LTE patents, they have access to strong R&D. There will be synergy in testing new phone technologies in the future (and vice versa, optimizing radio performance based on phone device data).
When more mobile operators switch to LTE in their markets (and to some extent, 5G in the future), Nokia will be there to supply the access and network equipment. When you have such intimacy in supplying core equipment to the network operators, it may help in promoting the mobile phones too 😀
You are reading an archived discussion.
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