Light Reading

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
Flash Poll
From The Founder
Anshul Sadana answers questions from Steve Saunders, Light Reading's founder and CEO, about Arista's CloudVision, a global cloud network controller for workload orchestration and workflow automation delivering a turnkey solution for cloud networking.
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
Between the CEOs
Video Exclusive With Basil Alwan, Alcatel-Lucent

7|24|15   |   26:44   |   (2) comments


Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
LRTV Custom TV
VDF: Enable the Financial With Mobile Money

7|20|15   |   06:53   |   (0) comments


Ian Ravenscroft discusses how operators can expand to occupy the entire digital services value chain through service innovation.
LRTV Custom TV
Telefónica on OSS Transformation

7|20|15   |   06:01   |   (0) comments


Jose Gonzales discusses the details of Telefónica's operation transformation program.
LRTV Custom TV
Judi Achmadi on Huawei's Cloud Storage Solution

7|20|15   |   03:33   |   (0) comments


Judi discusses the key business goals of TelekomSigma's public cloud service and how Huawei's solution helps them address challenges.
LRTV Custom TV
KPN Enlightening Digital Business & IT Transformation

7|20|15   |   06:19   |   (0) comments


Rob de Beer discusses the changes that operators need to make with service innovation now coming from the Internet world.
LRTV Custom TV
Stratus Telco-Grade Cloud Solutions & NFV

7|20|15   |   07:34   |   (0) comments


Ali Kafel from Stratus Technologies addresses high-availability concerns within the telco industry with a solution that enables telcos to provide high-availability and stateful fault-tolerance using a software-based approach.
LRTV Documentaries
The Six Million Dollar Business Man

7|20|15   |   01:52   |   (0) comments


Steve Saunders, publisher. A man barely alive after an acquisition malfunction imploded the company he founded. Gentlemen, we can rebuild Light Reading. Better, faster, stronger.
Between the CEOs
CEO Chat With Anukool Lakhina, Guavus

7|20|15   |   38:51   |   (1) comment


Guavus CEO Anukool Lakhina talks to Light Reading founder and CEO Steve Saunders about the role of operational analytics in the communications services and networking sectors, particularly in relation to IoT.
LRTV Custom TV
IBM's Flash Storage With Intel QuickAssist

7|20|15   |   03:18   |   (0) comments


Intel's Bev Crair and IBM's Eric Herzog discuss how IBM's V9000 Flash Storage System has helped customers around the world. Featuring real-time compression powered by Intel QuickAssist Technology, the V9000 is a next-gen flash storage solution.
LRTV Huawei Video Resource Center
Thailand's AIS: Transforming to an FMC Operator

7|17|15   |   4:53   |   (0) comments


Saran Phaloprakarn, Senior VP of Fixed Broadband Business Management of Thailand's AIS, was a keynote speaker at the first Asia-Pacific Ultra Broadband Summit in Bangkok. In this video, he talks to Heavy Reading about transforming into an FMC (FBB+MBB+Content) operator.
LRTV Huawei Video Resource Center
Cambodia's TRC Discusses Its Plans for National Broadband

7|17|15   |   10:33   |   (0) comments


In this video, Chakyra Moa, Chairman of Telecommunication Regulator of Cambodia (TRC), talks in in-depth with Heavy Reading about the Cambodia's current telecom market and TRC's goals and expectations for the future.
LRTV Documentaries
5G Phone

7|16|15   |   2:09   |   (4) comments


A man has an opportunity to purchase the world's first working 5G phone. Imagine the possibilities...
Upcoming Live Events
September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
December 1, 2015, The Westin Times Square, New York City
All Upcoming Live Events
Infographics
Network operators start seeing savings from NFV in the first year, according to a study by Affirmed Networks and ACG.
Hot Topics
T-Mobile Launches RCS Messaging
Sarah Thomas, Editorial Operations Director, 7/22/2015
Huawei Working Hard for Rural Success
Carol Wilson, Editor-at-large, 7/22/2015
AT&T U-verse TV Hits the Skids
Alan Breznick, Cable/Video Practice Leader, 7/24/2015
Eurobites: Alcatel-Lucent, Vodafone Test TWDM-PON
Paul Rainford, Assistant Editor, Europe, 7/22/2015
Robbins Succeeds Chambers as Cisco Changes CEOs
Mitch Wagner, West Coast Bureau Chief, Light Reading, 7/27/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
Guavus CEO Anukool Lakhina talks to Light Reading founder and CEO Steve Saunders about the role of operational analytics in the communications services and networking sectors, particularly in relation to IoT.