Telecom equipment and solutions major Nokia Siemens
Networks announced its strategy to focus on mobile broadband and services businesses.
The company’s Services organization will strengthen its global delivery system. Business areas not consistent with the
new strategy are planned to be divested or managed for value.
Quality and innovation will continue to be priorities for
the company, with ongoing investment in both areas.
The company also announced the launch of an extensive
global restructuring program.
“We believe that the future of our industry is in
mobile broadband and services – and we aim to be an undisputed leader in these
areas. We need to take the necessary steps to maintain long term
competitiveness and improve profitability in a challenging telecommunications
market,” said Rajeev Suri, chief executive officer of Nokia Siemens Networks.
Nokia Siemens Networks will target end-to-end mobile
network infrastructure and services, with a particular emphasis on mobile
broadband.
In Q3 2010, Nokia Siemens Networks announced a number of
mobile broadband deals involving clients like STC in Saudi Arabia, Latvijas Mobilais Telefons in Latvia, TeliaSonera
Finland, China Mobile in Hangzhou and
Xiamen, Bell in
Canada, T-Mobile USA, WIND Telecommunicazioni in Italy, VeeTIME and GO Malta.
Nokia Siemens Networks is planning to provide the world’s most
efficient mobile networks, the intelligence to maximize the value of those
networks, and the services capability to make it all work seamlessly.
Despite
the need to restructure parts of the company, its commitment to research and
development remains unchanged, with investment in mobile broadband expected to
increase over the coming years.
As part of the restructuring, Nokia Siemens Networks will
reduce its non-IFRS annualized operating expenses and production overheads by
EUR 1 billion by the end of 2013, compared to the end of 2011.
These savings are expected to come largely from
organizational streamlining. The company will also target areas such as real
estate, information technology, product and service procurement costs, general and administrative expenses, and a significant reduction of suppliers
to further lower costs and improve quality.
Nokia Siemens Networks plans to reduce its global
workforce by approximately 17,000 by the end of 2013.
Nokia Siemens Networks posted
16 percent increase in net sales at EUR 3,413 million in Q3 2011 as compared
with EUR 2,943 million in Q3 2010. The substantial increase in net sales was
primarily because of its 38 percent growth in the Asia Pacific region including
India (excluding China).
By Telecomlead.com Team
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