& cplSiteName &

Nokia Networks Buys RAN Assets in Japan

Ray Le Maistre

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
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.
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?
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.
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
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.
Friday, October 28, 1:00PM EDT
Security: The Plusses and Minuses of Open Source Software
Nick Feamster, Acting Director, Center for Information Technology Policy, Princeton University
Wednesday, November 16, 1:00PM EST
SDN 101
John Isch, Practice Director, Network & Voice, Orange Business Services
Friday, November 18, 1:00PM EST
SDN & Open Source
Christopher W. Rice, Senior Vice President of AT&T Labs, Domain 2.0 Architecture and Design
Wednesday, November 30, 1:00PM EST
SDN & the Software Defined Data Center
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 Custom TV
OneAccess NFV Solutions

10|26|16   |   5:30   |   (0) comments

Antoine Clerget, CTO of OneAccess, discusses how his company has expanded its product line from enterprise-class routers to include a universal virtualized CPE as well as a suite of VNFs to help telco customers evolve to an NFV future.
LRTV Custom TV
The Journey Toward Carrier-Grade WiFi

10|26|16   |   3:39   |   (0) comments

In this Light Reading interview, Dave Sperling, CTO at Smith Micro Software and active participant of the WBA's policy working group, discusses the need for carrier-grade WiFi. Technical and business challenges slowing the fulfillment of this goal are addressed, as well as management strategies that will enable communication service providers to optimize end user ...
LRTV Custom TV
ZTE BBWF Highlights

10|26|16   |     |   (0) comments

At BBWF 2016, ZTE showed a broad range of innovative technologies that are kick-starting an ultrafast broadband journey.
LRTV Custom TV
Next-Generation Technology Beyond DOCSIS 3.1

10|20|16   |     |   (0) comments

At SCTE 2016, Huawei's Liu Jianhua speaks with Alan Breznick for an exclusive interview.
LRTV Custom TV
Hybrid Video Solutions to Change TV, Change Future

10|20|16   |     |   (0) comments

At SCTE 2016, Huawei's Ian Locke speaks with Alan Breznick for an exclusive interview.
LRTV Custom TV
Huawei Future-Oriented Giga Coax Network

10|20|16   |     |   (0) comments

At SCTE 2016, Huawei's Allen Wang speaks with Alan Breznick for an exclusive interview.
LRTV Custom TV
Huawei at SCTE 2016

10|20|16   |     |   (0) comments

Join Alan Breznick of Light Reading and take a sneak peek at the Huawei booth at SCTE 2016.
LRTV Custom TV
Assuring Network Quality in a Rapidly Changing Environment

10|20|16   |     |   (0) comments

As the rate of change and complexity increases in agile networks, the importance of introducing DevOps methodologies for integrating active test and assurance solutions throughout the full service lifecycle becomes critical to ensure that customers are experiencing the service quality they demand. The industry landscape is changing, and software-based test and ...
Telecom Innovators Video Showcase
A10 Networks on Service Providers' Industry Needs

10|20|16   |     |   (0) comments

Light Reading's Steve Saunders hears how A10 enables service providers to accelerate, secure and optimize their application delivery to drive down costs, enhance service availability, and better respond to customer requirements, so they can improve customer satisfaction, monetize their network, and grow revenues.
LRTV Custom TV
New NFV Use Cases for Cable TV

10|19|16   |     |   (0) comments

A large number of NFV use cases are focused on the enterprise domain, looking at virtualization of customer-premises equipment (CPE). To date, there has been little focus on the use cases and business case for virtualization of the video content delivery networks required to deliver unicast and streaming video to consumers. Amdocs commissioned Analysys Mason to ...
Women in Comms Introduction Videos
Meet the Future Workforce: New Faces, Expectations & Motivations

10|19|16   |   5:33   |   (1) comment

Millennials and their younger peers, Gen Z, expect more out of their network and more out of their work. Intel's Lynn Comp shares how the industry can prepare for this new generation of workers.
LRTV Custom TV
ZTE Global Services User Congress 2016 Highlights

10|19|16   |     |   (0) comments

ZTE held its 2nd Global Service User Conference in Dusseldorf on October 13-14. Representatives from network operators, leading industry analysts and ZTE senior expertsattended the event, exploring the best practice in managed services and the vision to transform network operations into the operations center of the future (OpCF) in the software-defined networking ...
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
Hot Topics
Attacks Have Major Internet Sites on the Ropes
Brian Santo, Senior editor, Test & Measurement / Components, Light Reading, 10/21/2016
Trump: Dump AT&T/TW & Comcast/NBC
Alan Breznick, Cable/Video Practice Leader, Light Reading, 10/24/2016
T-Mobile: AT&T & TW Means Ma Bell Not Focused on Mobile
Dan Jones, Mobile Editor, 10/24/2016
Layer3 TV Comes to Town, Hints at Future
Mari Silbey, Senior Editor, Cable/Video, 10/21/2016
Verizon Wants More Data on Yahoo Breach
Alan Breznick, Cable/Video Practice Leader, Light Reading, 10/20/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
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.
There's no question that, come 2020, 5G technology will turn the world's conception of what mobile networking is on its head. Within the world of 5G development, Dr. ...
Animals with Phones
'Oh, Were You Looking for This?' Click Here
'I was just playing some games...'
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.