& 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
Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators.
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 Interviews
Heavy Reading: The Web-Scale View

1|18|17   |     |   (0) comments


At Light Reading's 2020 Vision Executive Summit in Rome, Heavy Reading's former chief analyst Patrick Donegan shared insight from the recent web-scale operators report, which featured research on how web-scale operators view the market, the best web-scale companies to ...
LRTV Custom TV
Cisco's Cloud Scale Networking: Automation, Virtualization & Simplification

1|18|17   |     |   (0) comments


Cisco's Sanjeev Mervana outlines the latest innovations in networking technology at CES 2017 in Las Vegas.
LRTV Custom TV
ADVA Talks Innovation & the Future of Networking

1|17|17   |     |   (0) comments


Ray Le Maistre and Christoph Glingener, CTO of ADVA Optical Networking, discuss the current state of the industry, cooperation and collaboration, open innovation and the future of networking.
LRTV Custom TV
Cisco's Infinite Video Platform

1|17|17   |     |   (0) comments


Cisco's Infinite Video Platform allows service providers to deliver broadcast-quality video over IP networks. Infinite video supports many devices, from 4K TVs to tablets to game consoles. Join Cisco's Rajeev Raman for a brief tour and live demo.
LRTV Interviews
Masergy: Ability to Adapt Key for NFV

1|16|17   |   6:40   |   (0) comments


Speaking at Light Reading's 2020 Vision in Rome, Masergy's VP, Global Technology, Ray Watson, said agility is key to providing the mix and match NFV-based services that are driving business for the managed service provider today.
LRTV Interviews
Equinix: The Data Explosion

1|13|17   |   4:16   |   (0) comments


At Light Reading's 2020 Vision in Rome, Eric Schwartz, president of EMEA, Equinix, talked about how Equinix is helping its customers manage the influx of data today, and how it's preparing for a future filled with millions of connected IoT devices.
LRTV Interviews
Heavy Reading: The Changing Data Center Landscape

1|12|17   |   6:05   |   (1) comment


At Light Reading's 2020 Vision event in Rome, Heavy Reading's Senior Analyst Roz Roseboro talks about how virtualization is impacting data center evolution and how that evolution is affecting the relationship between service providers, data center operators and public cloud providers.
LRTV Interviews
Boingo: Prepping for Millions of Devices

1|12|17   |   5:07   |   (1) comment


At Light Reading's 2020 Vision in Rome, Boingo's CTO Derek Peterson discusses how wireless operators will address the needs of low-bandwidth and high-bandwidth apps at the same time, the need for more MHz, the impact of IoT and more.
LRTV Interviews
Comcast Shows Off Gig Gateway at CES

1|11|17   |     |   (1) comment


With its largest presence at CES in years, Comcast took the wraps off its long-awaited gigabit gateway and a new platform for managing the home WiFi network. Light Reading Senior Editor Mari Silbey sat down with EVP Chris Satchell to discuss the latest Comcast advance, and met with VP of Product Strategy and Development Andrea Peiro to walk through a demo of the ...
LRTV Interviews
Colt: End-to-End Key for 2017

1|10|17   |   6:21   |   (0) comments


At Light Reading's 2020 Vision Executive Summit in Rome, Nico Fischbach of Colt said having a multi-carrier, end-to-end service proposition is going to be key for 2017 -- and SD-WAN is instrumental in making it happen.
From the Founder
Cisco's Clemson on Mobile Cloud Video

1|9|17   |     |   (1) comment


Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators. "If you think about where we're going… whether it's a mobile application, or a video ...
LRTV Custom TV
VMware Telco NFV Solutions – Preparing for 5G & IOT

1|9|17   |     |   (0) comments


Shekar Ayyar, EVP & Corporate Strategy/General Manager of Telco for VMware, discusses VMware's Telco NFV solutions role and foundation for the Imminent Arrival of 5G & IOT.
Upcoming Live Events
March 21-22, 2017, The Curtis Hotel, Denver, CO
May 15-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Hot Topics
A Women in Comms Glossary
Sarah Thomas, Director, Women in Comms, 1/18/2017
Is Cable One Beefing Up for Slaughter?
Alan Breznick, Cable/Video Practice Leader, Light Reading, 1/20/2017
Nokia CTO: 2017 Is the Year 5G Gets in the Field
Dan Jones, Mobile Editor, 1/19/2017
TV's Paradox: No HDR Without 4K
Mari Silbey, Senior Editor, Cable/Video, 1/17/2017
Cable Has One Thing Verizon Needs
Mari Silbey, Senior Editor, Cable/Video, 1/17/2017
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Light Reading founder and CEO Steve Saunders chats with Sportlogiq CEO Craig Buntin about sports data analysis.
Eyal Waldman, CEO of Mellanox Technologies, speaks to Steve Saunders, CEO of Light Reading, for an exclusive interview about the 100 GB cable challenge, cybersecurity and much more.
Animals with Phones
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.