& cplSiteName &

Nokia Networks Buys RAN Assets in Japan

Ray Le Maistre
7/31/2014
50%
50%

In yet another sign that it has turned a corner and is brimming with confidence, mobile network infrastructure specialist Nokia Networks has struck a deal by buy the radio access network (RAN) division of Japanese technology vendor Panasonic System Networks.

Nokia Networks is buying assets and customer contracts and will take on a number of employees in Japan. According to local media reports, the Panasonic System Networks currently generates revenues at a run rate of about $190 million per year, about 10% of the total mobile broadband network infrastructure market in Japan.

Panasonic's main RAN equipment customer is Japan's leading mobile operator NTT DoCoMo Inc. (NYSE: DCM), where Nokia Networks is also a strategic supplier. The other major mobile operators in Japan are KDDI Corp. and SoftBank Mobile Corp. . (See Docomo Chooses LTE-Advanced Partners.)

Panasonic is selling the unit as part of a broader corporate restructuring strategy that will see it focus on core IT markets.

Financial details were not released. The deal is expected to close by January 1 next year.

Nokia's chief aim is to solidify its position in Japan, a key Asia-Pacific market for Nokia Networks (formerly NSN) and key rival Ericsson AB (Nasdaq: ERIC), especially as 4G matures and 5G developments pick up pace. Competition in intense in the Japanese mobile networks market, as NEC Corp. (Tokyo: 6701) and Fujitsu Ltd. (Tokyo: 6702; London: FUJ; OTC: FJTSY) are also key (indigenous) players. (See DoCoMo Unveils 5G Trial Plans.)

Nokia Networks generated revenues of €1.39 billion (US$1.34 billion) in Japan during 2013 from all parts of its business (hardware, software, and professional services), down by 36% from 2012. The decline was due to a number of factors, including currency exchange rate shifts, and a reduction in network rollouts in Japan during 2013.


Want to know more about 4G LTE? Check out our dedicated 4G LTE content channel here on Light Reading.


Nokia Networks, which continues to improve its financial fortunes quarter-by-quarter, has spent the past few years selling non-core assets and shrinking its operations, so an acquisition is a significant statement of intent, even if it is focused on one (albeit important) market. (See Nokia Holds Steady in Q2, Raises Outlook.)

— Ray Le Maistre, Circle me on Google+ Follow me on TwitterVisit my LinkedIn profile, Editor-in-Chief, Light Reading

(5)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
mhhf1ve
50%
50%
mhhf1ve,
User Rank: Light Sabre
8/6/2014 | 5:52:38 PM
Re: Marketing territories
Nokia's going to buy up Blackberry... and re-enter the smartphone market in Asia with a vengeance.

Oh. you wanted speculation based in reality. Sorry about that.
MarkC73
50%
50%
MarkC73,
User Rank: Light Sabre
7/31/2014 | 11:03:22 AM
Re: Marketing territories
Good to see Nokia hanging in there with a strategy, any speculations on what they might do next?
SachinEE
50%
50%
SachinEE,
User Rank: Light Sabre
7/31/2014 | 10:36:03 AM
Marketing territories
It is evident that Nokia is trying to safe guard its position in Japan and make it a strong hold. There being high competition in Japan makes it necessary for Nokia to buy assets and contracts making it easier to have most Japan citizens on its side making it the dominant network in Japan and even though there was a decline in the profits last year, this move is likely going to get Nokia back on its feet.
mendyk
50%
50%
mendyk,
User Rank: Light Sabre
7/31/2014 | 9:43:22 AM
Re: Nokia Networks Buys RAN Assets in Japan
Kiretsu -- a good arrow to have in the quiver.
Gabriel Brown
100%
0%
Gabriel Brown,
User Rank: Light Sabre
7/31/2014 | 9:13:53 AM
Nokia Networks Buys RAN Assets in Japan
Possibly worth noting that it was a collaboration with Panasonic (announced 2007) that established NSN as an LTE supplier to DoCoMo and helped it build a strong position in the Japanese LTE market. Japan has been absolutely critical market for NSN and, especially, helped it survive through the worst times. 

 Edit: http://nsn.com/news-events/press-room/press-releases/together-with-nokia-siemens-networks-panasonic-mobile-communic
Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
NEXT COURSE
Wednesday, September 28, 1:00PM EDT
Gigabit 101
Will Barkis, Senior Technology Analyst, Orange
UPCOMING COURSE SCHEDULE
Friday, September 30, 1:00PM EDT
Gigabit & the Great Migration
Robert Howald, Vice President, Network Architecture, Comcast
Wednesday, October 5, 1:00PM EDT
Gigabit & Smart Cities
Joe Kochan, COO & Co-Founder, US Ignite
Friday, October 7, 1:00PM EDT
Gigabit & DOCSIS 3.1
Ty Pearman, Director, Access Architecture, Comcast
in association with:
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Documentaries
MEC Congress: The Key Takeaways

9|22|16   |   03:25   |   (3) comments


Three key takeaways from the Mobile Edge Computing (MEC) Congress in Munich, Germany.
Wagner’s Ring
Time to Shut Up About 'Dumb Pipes'

9|22|16   |     |   (12) comments


Service providers can't compete with OTT players. It just isn't in their DNA. Instead, service providers need to embrace what they're good at -- providing reliable, secure connectivity.
Wagner’s Ring
Keeping Your Tech Career Going After 50

9|21|16   |     |   (13) comments


How do you keep your career moving forward when you're past the half-century mark?
LRTV Interviews
Peering Into the Digital Future

9|20|16   |   04:25   |   (0) comments


Nick Thomas, practice leader of digital media at Ovum, talks about how digital transformation in the technology, media and telecom sectors will enable the development of a new range of applications and services for enterprises and consumers and how the upcoming Digital Futures event in London will examine ...
LRTV Custom TV
Napatech Tackles NFV's Major Challenge

9|7|16   |   08:42   |   (0) comments


One of the main challenges for network operators introducing NFV is to combine performance and flexibility in a cost-effective way, but there is a solution, explains Napatech's Dan Joe Barry.
LRTV Custom TV
Huawei Optical Innovation 2016

9|6|16   |     |   (0) comments


Highlights of the 2016 Huawei Optical Innovation forum.
LRTV Huawei Video Resource Center
Are You Ready for Huawei Connect 2016?

8|31|16   |     |   (0) comments


Join us for an exclusive sneak peak of Huawei Connect, an integrated conference for the global ICT ecosystem taking place in Shanghai.
Between the CEOs
CEO Chat: UXP's Gemini Waghmare

8|26|16   |     |   (0) comments


Light Reading CEO Steve Saunders and UXP Systems CEO Gemini Waghmare discuss the strategic importance of digital identity for operators in the midst of transformation.
LRTV Custom TV
F5 Virtual Network Function Integrations With Partner Orchestration Platform

8|24|16   |   6:38   |   (0) comments


F5's Kishore Patnam, product manager for F5's service provider solutions, discusses why service providers are moving towards virtualization and how his clients are utilizing F5's solutions.
Between the CEOs
CEO Chat: Intel's Alexis Black Bjorlin

8|17|16   |   06:23   |   (0) comments


Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Telecom Innovators Video Showcase
Accelerating Telecom Digital Transformation With Nominum DNS

8|1|16   |   12:04   |   (0) comments


Light Reading's Steve Saunders gets an update from Nominum CEO Gary Messiana on how his company is helping carriers on the digital transformation journey.
LRTV Custom TV
Reinventing Operations for a Virtual, Software-Defined World

7|28|16   |   5:23   |   (0) comments


Heavy Reading Senior Analyst Jim Hodges speaks with Accenture's Larry Socher and Matt Anderson about what service providers must do to transform their business to get the benefits of SDN and NFV including: leveraging DevOps, introducing real-time OSS and implementing analytics.
Upcoming Live Events
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 1, 2016, The Westin Times Square, New York, NY
December 6-8, 2016, The Westin Excelsior, Rome
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Hot Topics
Keeping Your Tech Career Going After 50
Mitch Wagner, West Coast Bureau Chief, Light Reading, 9/21/2016
Time to Shut Up About 'Dumb Pipes'
Mitch Wagner, West Coast Bureau Chief, Light Reading, 9/22/2016
Comcast Will Go Wireless in 2017
Mari Silbey, Senior Editor, Cable/Video, 9/20/2016
Sprint CEO: We'll Lease Spectrum as Soon as Possible
Dan Jones, Mobile Editor, 9/20/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Light Reading CEO Steve Saunders and UXP Systems CEO Gemini Waghmare discuss the strategic importance of digital identity for operators in the midst of transformation.
Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Animals with Phones
You Thought Your Customer Service Was Unreliable... Click Here
Live Digital Audio

A vital part of increasing the number of women in comms is transforming the ways companies can support and empower women. While progressive company policies that support both men and women in achieving work-life balance are a step in the right direction, creating a company culture that supports those policies can at times be more challenging.

During this show, we'll talk to Lynn Comp, Senior Director of Industry and Sales Enabling (ISE) in the Network Platforms Group at Intel, about why those challenges exist and how companies can overcome them. She'll provide insight into how Intel has worked to create a culture that supports work-life balance, and provide steps and guidance for other companies wishing to do the same. We will also leave plenty of time to get your questions answered live on the air.