Light Reading
Improves its position with NTT DoCoMo with the planned acquisition of Panasonic's radio access networks business.

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
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
Flash Poll
From The Founder
Is your network built on 'The Old IP,' or are you part of 'The New IP' revolution?
LRTV Documentaries
A Cultural Shift for an OTT World

9|26|14   |   01:41   |   (3) comments


Telcos need to embrace a new approach to partnerships if they are to generate extra revenues quickly and give customers what they want.
LRTV Documentaries
New Skills Needed as Telecom, IT Collide

9|26|14   |   4:07   |   (1) comment


As telecom and IT collide, new technologies are emerging, new skills are needed and new opportunities for women are arising.
UBB Forum News
Do IP Networks Need An Overhaul?

9|25|14   |   02:01   |   (0) comments


As traffic levels ramp, do IP networks need new technologies and topologies?
LRTV Documentaries
Sprint Wields Its Influence in the Valley

9|25|14   |   3:09   |   (11) comments


Anne-Louise Kardas, Sprint's connection to startups in the Valley, explains how telcos can be innovative and find new opportunities with partners.
LRTV Documentaries
SDN, NFV & The Future of XO's Network

9|25|14   |   3:47   |   (1) comment


XO Communications COO Don MacNeil explains how cloud, SDN and NFV are altering its network requirements as well as changing data centers of the future.
UBB Forum News
The OTT Conundrum

9|24|14   |   01:39   |   (0) comments


What is holding back prosperous partnerships between telcos and the OTT players?
LRTV Documentaries
Putting Broadband to Work

9|24|14   |   01:26   |   (0) comments


High-speed broadband network rollout is key to telco strategies, but it's what happens after the network is built that counts.
Light Reedy
Light Reading's Women in Telecom Recap

9|24|14   |   0:55   |   (4) comments


Our first Women in Telecom breakfast was a huge success, and we hope you'll join us in London for the next event on November 6.
UBB Forum News
Monetizing Ultra-Broadband

9|24|14   |   01:43   |   (2) comments


Ultra-broadband networks need to be built, with fiber-to-the-premises the ultimate goal, but they need to be monetized, too.
LRTV Huawei Video Resource Center
Sales Director of INIT on Plug & Play Switch Devices

9|19|14   |   3:21   |   (0) comments


INIT Italy uses both the Huawei S5700 and S7700 series switches for the campus LAN environment. Sales Director Andrea Curti says their company chose these Huawei devices over others because of their performance, flexible scalability and plug-and-play features.
LRTV Huawei Video Resource Center
Saudi Arabia Upgrades Vocational Training System

9|19|14   |   3:31   |   (0) comments


The Technical and Vocational Training Corporation (TVTC) has 100,000 students, 150 government-owned institutions and oversees 1000 private institutes. The CIO of TVTC explains that Huawei devices have allowed them to manage multiple datacenters using just one software program, scientifically tracking the progress of students and teachers, saving them millions.
LRTV Huawei Video Resource Center
Huawei's Media Solutions Are Here to Stay

9|19|14   |   4:35   |   (0) comments


The current media revolution requires rapid upgrades in technology. New formats (HD, 3D, 4K etc.) and the subsequent explosion of file sizes demand sophisticated network and storage architecture. Social media and the multiple distribution channels require a robust asset management system. Gartner analyst Venecia Liu speaks about the current technological trends in ...
Upcoming Live Events
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
Half of the world's population will be connected to the Internet by 2017, but not just by smartphones and desktops.
Hot Topics
Facebook Pokes Around LTE Direct
Sarah Reedy, Senior Editor, 9/25/2014
Is Redbox Instant Shutting Down?
Mari Silbey, Independent Technology Editor, 9/30/2014
Sprint Wields Its Influence in the Valley
Sarah Reedy, Senior Editor, 9/25/2014
US Ignite Cultivates Gigabit Apps
Jason Meyers, Senior Editor, Utility Communications/IoT, 9/25/2014
Like Us on Facebook
Twitter Feed