Light Reading

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
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....
Flash Poll
From The Founder
The New IP is actually bigger even than business. Like another hugely important tech that Light Reading is digging into right now, the New IP has the potential to change the world by fundamentally advancing what it is possible for people to achieve with communications.
Que Sera Sarah
Growth of the 5G Ecosystem

3|6|15   |   1:15   |   (1) comment


Use cases and industry collaborations dominated 5G discussions during Mobile World Congress 2015. For what the road to 5G means for operators and their partners, head to the Building America's 5G Ecosystem event in New York on April 14.
LRTV Custom TV
Sonus NaaS IQ Real-Time Demo

3|6|15   |   4:03   |   (0) comments


Compass Networks Chairman and CEO Matt Bross and Ray Dolin, CEO of Sonus Networks, demonstrate their Sonus IQ SDN solution using a live video conference connection.
LRTV Custom TV
LRTV Talks Carrier WiFi & WiFi Calling With Aptilo Networks

3|6|15   |   4:53   |   (0) comments


We stopped by Aptilo Networks, a market leader in WiFi service management and offloading, to discuss the new possibilities with next-generation WiFi calling and why WiFi should be a natural part of any operator strategy.
LRTV Interviews
NGMN Chairman Outlines His 5G Vision

3|6|15   |   5:10   |   (1) comment


Bruno Jacobfeuerborn, chairman of the NGMN Alliance and Deutsche Telekom CTO, shares his thoughts on the challenges, opportunities and costs of 5G.
LRTV Interviews
In the Cloud With Telecom Italia

3|5|15   |   7:10   |   (0) comments


Light Reading CEO Steve Saunders sits down with Telecom Italia's Simone Battiferri at Mobile World Congress to discuss virtualization, agility and the economic advantages of the cloud.
LRTV Huawei Video Resource Center
New Ways of Working

3|5|15   |   4:24   |   (0) comments


At the ICT Leaders Roundtable, hosted jointly by Light Reading and Huawei at the Hotel Renaissance in Barcelona just prior to Mobile World Congress, Hong Kong Telecom's Michael Yue explains how the transformation in its business has changed its customer relationships.
LRTV Huawei Video Resource Center
Bridging the Digital Gap

3|5|15   |   4:03   |   (0) comments


At the ICT Leaders Roundtable, hosted jointly by Light Reading and Huawei at the Hotel Renaissance in Barcelona just prior to Mobile World Congress, Boingo's Dr. Derek Peterson explains how ICT can help telcos bring the physical and virtual worlds closer together.
LRTV Huawei Video Resource Center
Making the Internet of Things Affordable

3|5|15   |   2:42   |   (0) comments


At the ICT Leaders Roundtable, hosted jointly by Light Reading and Huawei at the Hotel Renaissance in Barcelona just prior to Mobile World Congress, Telefonica's Dr. Mike Short explains how the Internet of Things demands a new low-cost approach to connectivity from telcos.
LRTV Huawei Video Resource Center
Evolution, Not Revolution

3|5|15   |   2:00   |   (0) comments


At the ICT Leaders Roundtable, hosted jointly by Light Reading and Huawei at the Hotel Renaissance in Barcelona just prior to Mobile World Congress, Heavy Reading's Patrick Donegan explains why telcos can't be too hasty in their efforts to transform themselves.
LRTV Custom TV
Management & Orchestration Enablement Strategies Required for NFV Commercial Success

3|5|15   |   6:22   |   (0) comments


NFV commercial success rests on successful service orchestration strategies which can span heterogeneous physical, virtual, legacy and next-gen networks. Network data and security integrity are additional key aspects. Nakina provides a suite of orchestratable network integrity applications built on an open, scalable MANO enablement platform.
LRTV Huawei Video Resource Center
The Power of Five Convergences in OceanStor OS

3|4|15   |   6:24   |   (0) comments


OceanStor OS is Huawei's brand-new storage operating system. While inheriting the consistent high stability, reliability and performance from the company's previous storage products, OceanStor OS abounds in new converged storage features. Specifically, the new storage operating system achieves "five convergences" to lift storage convergence to a higher level.
LRTV Huawei Video Resource Center
4K Brings Extreme Video Experience

3|4|15   |   8:10   |   (0) comments


4K video is a hot topic in the video industry. It will certainly bring an extreme video experience to end users. At the same time, however, it will also pose a big challenge to operators. Check out this Huawei 4K experts' discussion about how operators can achieve success in 4K video service.
Upcoming Live Events
March 17, 2015, The Cable Center, Denver, CO
April 14, 2015, The Westin Times Square, New York City, NY
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 8, 2015, Chicago, IL
June 9-10, 2015, Chicago, IL
June 9, 2015, Chicago, IL
June 10, 2015, Chicago, IL
All Upcoming Live Events
Infographics
Net neutrality, broadband services and the current outlook on data consumption, as presented by the New Jersey Institute of Technology.
Hot Topics
Internet Pioneers Decry Title II Rules
Carol Wilson, Editor-at-large, 3/2/2015
Wheeler: We'll Enforce Title II 'Case-By-Case'
Sarah Thomas, Editorial Operations Director, 3/3/2015
New CenturyLink CTO in Major Overhaul
Carol Wilson, Editor-at-large, 3/4/2015
Alibaba 'Planting a Flag' in US Cloud Market
Mitch Wagner, West Coast Bureau Chief, Light Reading, 3/4/2015
Few in Number, Big in Data
Sarah Thomas, Editorial Operations Director, 3/2/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Chattanooga’s EPB publicly owned utility comms company has become a poster child for how to enable a local economy using next-gen networking technology. Steve Saunders, Founder of Light Reading, sits down with Harold DePriest, president and CEO of EPB, to learn how EPB is bringing big time tech to small town America.
Light Reading CEO Steve Saunders talks transformation and virtualization – including Light Reading's independent testing of the vendor's virtualization solutions – with Cisco CEO John Chambers at Mobile World Congress in Barcelona.
Check out Light Reading's interview with Jay Samit, the newly appointed CEO of publicly traded SeaChange International Inc. With a resume that includes Sony, EMI, and Universal, Samit brings a reputation as an entrepreneur and a disruptor to his new role at the video solutions company. Hear what he had to say about the opportunities in video, as well as the outlook for cable, telco, OTT and mobile service providers.
G'day! And welcome to an entirely new feature on Light Reading -- our weekly "CEO-to-CEO" interview.