& cplSiteName &

Nokia Ushers In New Era, Retires NSN Name

Ray Le Maistre
4/29/2014
50%
50%

With its devices business finally offloaded, Nokia has unveiled its new roadmap, a new senior team, and financial plans. (See Microsoft Officially Closes Nokia Buy.)

It also reported its first-quarter results, announcing revenues of €2.66 billion (US$3.7 billion) and an operating profit of €242 million ($335.4 million). (See Nokia Reports Q1 .)

With the sale of the mobile handsets unit to Microsoft now complete, Nokia now comprises three businesses that generated about €12.7 billion ($17.6 billion) in revenues in 2013:

  • Networks (currently known as NSN), the network infrastructure and professional services giant, which accounts for about 87% of revenues. The NSN name will be phased out, with the business in future referred to as Networks, comprising Mobile Broadband and Global Services. This business will be run by Samih Elhage, who will be chief financial and operating officer.
  • HERE, the mapping and location applications unit, which generates about 8% of group revenues. Michael Halbherr is the CEO of that business, which will focus on connected cars, cloud-based services for personal locations applications, and location-based analytics. HERE currently provides the technology for about 80% of car navigation systems, and counts the likes of Amazon, Microsoft, and Yahoo as customers.
  • Technologies, the licensing unit that generates sales from Nokia's patents portfolio, which generates about 5% of sales. Henry Tirri is acting head of Technologies.

The new Nokia will be headed up, as expected, by current NSN CEO Rajeev Suri, who takes on the role officially from May 1. Nokia Chairman Risto Siilasmaa, who had been Nokia's interim CEO, will now focus on his role as chairman.

Suri will be supported by Timo Ihamuotila as group chief financial officer, Barry French as executive vice President of marketing and corporate affairs, Hans-Jürgen Bill as executive vice president of human resources, and Maria Varsellona as executive vice president and chief legal officer.

Let's get Suri-ous: The new-look Nokia will be headed up, as expected, by current NSN CEO Rajeev Suri.
Let's get Suri-ous: The new-look Nokia will be headed up, as expected, by current NSN CEO Rajeev Suri.

Money matters
As a result of the devices sale, Nokia has about €7.1 billion ($9.84 billion) in net cash, so it's planning (subject to shareholder approval) to pay off some debts and returning some money to its shareholders in what it is calling a "€5 billion capital structure optimization program."

  • Nokia plans to pay ordinary dividends of €400 million ($555 million) this year and the same amount in 2015.
  • In addition it is planning a special dividend this year of about €1 billion ($1.39 billion).
  • It is also planning to spend €1.25 billion ($1.73 billion) on a share repurchase program.
  • Nokia intends to pay off about €2 billion ($2.77 billion) in debt during the next two years.

The plan "is aligned with the long-term interests of our customers and shareholders," said CFO Timo Ihamuotila in the company's official statement. "Together with our continued focus on solid business execution, these capital structure enhancements support our longer-term target to return to an investment grade credit rating, which would further affirm our long-term competitive strength and support our strategic objectives."

Investors liked the plan, as Nokia's share price on the Helsinki exchange rose by 7.3% to €5.51.

Suri and his team will now be looking to put the past few years behind them, as the turmoil surrounding the demise and sale of the handsets business has been a major distraction. (See Microsoft's Elop Denies He Was a Trojan Horse and The Nokia/Microsoft Conspiracy Theory.)

The divestment of the devices business has coincided with a more stable, healthier financial position for the Networks business, which has now all but come to the end of a long but well executed restructuring program. (See NSN Braces for Tough Start to 2014.)

Now Suri has a new challenge -- maintain the Networks business as a leading provider of infrastructure and supporting services to telcos that are facing operational and financial challenges of their own, and build up HERE and Technologies into more substantial businesses that can help provide scale and a broader mix of revenue opportunities within the Nokia portfolio.

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

(3)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Gabriel Brown
50%
50%
Gabriel Brown,
User Rank: Light Sabre
4/29/2014 | 10:48:55 AM
Re: Weird for Finland
Nokia Networks sounds MUCH better. NSN and Nokia Siemens Networks were always a little awkard on the ear.

Listening to various of the Nokia briefings today, the loss of mobile phones might not be so strange. The chairman is talking a big game on sensors, Internet of things, machine type communications, proximity networking, peer-to-peer networks, and so on.

 
Kruz
50%
50%
Kruz,
User Rank: Light Sabre
4/29/2014 | 8:31:02 AM
Re: Weird for Finland
Agreed. But what happened to solution in Nokia Solutions and Networks? Why was the name retired while it was recently renamed?
Ray@LR
50%
50%
Ray@LR,
User Rank: Blogger
4/29/2014 | 7:14:21 AM
Weird for Finland
This must be a strange sensation for Finland, seeing a new Nokia emerge that does not have mobile phones at the heart of its business, and to see Microsoft signs going up on the old Nokia buildings.

And the end of the NSN name! Nokia Networks sounds like something from the old days....
From The Founder
Kicking off BCE 2017, Light Reading founder Steve Saunders lays blame for NFV's slow ramp-up and urges telecom to return to old-fashioned standards building and interoperability.
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.
Women in Comms Introduction Videos
Cisco: Mentoring Critical to Attract & Retain Women

7|19|17   |   6:40   |   (1) comment


Liz Centoni, senior vice president and general manager of Cisco's Computing System Product Group, shares why mentoring in all its forms is important for women and what Cisco is doing that's made a difference for women in tech.
LRTV Custom TV
Gigabit LTE With Snapdragon 835

7|12|17   |     |   (1) comment


At an event in Wembley stadium, EE used its live network to demonstrate gigabit LTE using a Sony Xperia XZ Premium smartphone with a Qualcomm Snapdragon 835 chip.
LRTV Custom TV
Implementing Machine Intelligence With Guavus

7|12|17   |     |   (0) comments


Guavus unites big data and machine intelligence, enabling many of the the largest service providers in the world to save money and drive measureable revenue. Learn how applying Machine Intelligence substantially reduces operational costs and in many cases can eliminate subscriber impact, meaning a better subscriber experience and higher NPS.
LRTV Custom TV
Unlocking Customer Experience Insights With Machine Intelligence

7|12|17   |     |   (0) comments


When used to analyze operational data and to drive operational decisions, machine intelligence reduces the number of tasks which require human intervention. Guavus invested in Machine Intelligence early. Learn about the difference between Machine Learning and Machine Intelligence.
Women in Comms Introduction Videos
Verizon VP Talks Network, Career Planning

7|12|17   |   4:49   |   (0) comments


Heidi Hemmer, vice president of Technology, Strategy & Planning at Verizon, shares how bold bets and the future of tech define her career.
Telecom Innovators Video Showcase
Masergy's NFV Journey

7|11|17   |     |   (0) comments


Ray Watson, vice president of global technology at Masergy, discusses the advantages and challenges in entering the still-maturing NFV market for the past three years.
Telecom Innovators Video Showcase
Mavenir on RCS Cloud Platform & Multi-ID

7|10|17   |     |   (0) comments


Guillaume Le Mener, head of marketing and corporate development at Mavenir, discussed RCS and the recent launch of Multi-ID, which supports T-Mobile's DIGITS, the revolutionary new technology that breaks down the limitation of one number per phone and one phone per number.
LRTV Custom TV
ADTRAN Executive Outlines Trends in Next-Generation 10-Gigabit Cable Networks

7|10|17   |     |   (0) comments


Hossam Salib, VP of Cable and Wireless Strategy at ADTRAN, outlines key trends as MSOs begin to deploy next-generation Gigabit and 10-Gigabit cable networks. In the interview, Hossam outlines the advantages of a Fiber Deep architecture, FTTH options including EPON and RFoG, and the importance of SDN and NFV in building next-generation high-bandwidth cable networks.
LRTV Interviews
Global Capacity: Bandwidth Demand Driving Ethernet Growth

7|6|17   |   6:37   |   (0) comments


At Light Reading's Big Communications Event in Austin, Texas, Global Capacity's VP of Marketing Mary Stanhope talks about how the demand for bandwidth is changing the way service providers deliver broadband services.
LRTV Interviews
Colt's Services Chief on Digital Delivery

7|5|17   |   16:12   |   (0) comments


Rogier Bronsgeest, the chief customer experience officer (chief CEO!) at Colt, discusses the way in which the service provider interacts with its customers these days and his aggressive net promoter score (NPS) targets.
Women in Comms Introduction Videos
BT VP: Women Should Fill Security Talent Gap

7|5|17   |   6:00   |   (2) comments


By 2020 there will be six security jobs for every qualified worker, and Kate Kuehn, vice president of Security for BT in the Americas, says BT wants to encourage women to fill the shortage in jobs.
LRTV Interviews
Colt Sales Exec on Services Trends

7|4|17   |   12:59   |   (0) comments


Colt's sales director for enterprise, James Kershaw, sheds some light on the services currently in demand and how network upgrades are influencing customer demand.
Upcoming Live Events
September 28, 2017, Denver, CO
October 18, 2017, Colorado Convention Center - Denver, CO
November 1, 2017, The Royal Garden Hotel
November 1, 2017, The Montcalm Marble Arch
November 2, 2017, 8 Northumberland Avenue, London, UK
November 30, 2017, The Westin Times Square
All Upcoming Live Events
Infographics
With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
Hot Topics
Mobile to Power Online Video Consumption – Zenith
Aditya Kishore, Practice Leader, Video Transformation, Telco Transformation, 7/19/2017
Can Mushroom Sprout in Crowded SD-WAN Field?
Carol Wilson, Editor-at-large, 7/18/2017
AI Will Be Ubiquitous in 2020 but Overhyped in 2017 – Gartner
Sarah Thomas, Director, Women in Comms, 7/18/2017
Facing the Facebook Video Threat
Gary Miles, Chief Marketing Officer, Amdocs, 7/17/2017
The Finger-Lickin' Fone: A Plucky Effort?
Ray Le Maistre, International Group Editor, 7/14/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Following a recent board meeting, the New IP Agency (NIA) has a new strategy to help accelerate the adoption of NFV capabilities, explains the Agency's Founder and Secretary, Steve Saunders.
One of the nice bits of my job (other than the teeny tiny salary, obviously) is that I get to pick and choose who I interview for this slot on the Light Reading home ...
Animals with Phones
Fuzzy Quick Fix Click Here
If you can't access it, is it really broken?
Live Digital Audio

Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.