Nokia Buys Out Siemens for NSN in $2.2B Deal

Posted by Sam Churchill on

Nokia today officially took over the reins of its infrastructure joint venture Nokia Siemens Networks, buying out Siemens 50 percent stake for €1.7 billion (U.S. $2.2 billion).

The Finnish mobile phone maker plans to keep calling the company NSN, renaming the division Nokia Solutions and Networks.

NSN, as a mobile infrastructure company, competes with other global companies like Ericsson, Alcatel, China’s Huawei and ZTE.

Nokia, unlike Ericsson or Alcatel, can sell you every link in the mobile chain from handset to base station. Samsung also has an infrastructure division, though it’s still relatively small.

Nokia has a smaller share of the telco networking market than the big three, but it does have a lot of momentum in LTE, winning key 4G contracts all over the world. In the U.S., only T-Mobile uses much NSN gear.

Nokia Siemens, based in Espoo, Finland, already cut more than 20,000 jobs during the past two years, as competition from Ericsson, Huawei and ZTE led to falling sales.

Infonetics expects the global 2G/3G/4G infrastructure market to reach $50.3B by 2016, with growth driven by LTE. According to Insight Research, the global telecommunications services and equipment market will bring in $2.2 trillion dollars in 2013. That number will grow to $2.7 trillion in 2018 at an average annual growth rate of just 3.8 percent.

Posted by Sam Churchill on Wednesday, August 7th, 2013 at 7:48 am .

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