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        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....
Flash Poll
From The Founder
Network architects aiming to upgrade their networks to support agile, open, virtualized services in the 21st century need to consider new criteria when choosing between technology suppliers.
Live Streaming Video
BTE 2015 Sponsor Keynote: HP
Dr. Prodip Sen, CTO, Network Functions Virtualization, HP
LRTV Custom TV
Red Hat Demo

7|2|15   |   10:53   |   (0) comments


Red Hat's Nicolas Lemieux demonstrates how Red Hat is driving innovation through open source communities.
LRTV Custom TV
Red Hat's Approach to OpenStack Adoption

7|2|15   |   5:17   |   (0) comments


Red Hat's Radhesh Balakrishnan outlines his company's open source strategy for both enterprises and telcos.
LRTV Custom TV
The New IP Goes Mobile With vEPC

7|2|15   |   1:12   |   (0) comments


Heavy Reading's Gabriel Brown discusses results of a Light Reading survey sponsored by Brocade that shows a clear commitment by mobile operators to move quickly to virtual EPC deployment.
LRTV Custom TV
Making Business Sense of SDN

7|2|15   |   1:42   |   (0) comments


Results of a Brocade-sponsored survey show that CSPs have a clear sense of SDN use cases but are wrestling with the business case. Sterling Perrin of Heavy Reading looks behind the numbers.
LRTV Custom TV
NFV Will Be Here Sooner Than You Think

7|2|15   |   2:22   |   (0) comments


Forget the usual ten-year cycle for new technologies – NFV will be a core part of CSP networks in five years, based on results of a Brocade-sponsored survey, says Heavy Reading's Caroline Chappell.
LRTV Custom TV
The New IP Gains Traction With CSPs

7|2|15   |   1:42   |   (0) comments


Roz Roseboro of Heavy Reading analyzes results of a Light Reading survey sponsored by Brocade showing that CSPs are getting serious about making the transition to the New IP era.
LRTV Custom TV
It's (Real) Time for Analytics

7|2|15   |   1:42   |   (0) comments


Heavy Reading's Jim Hodges looks at how CSPs say they plan to use analytics to deploy new services in real time as part of The New IP, based on results of a survey sponsored by Brocade.
LRTV Documentaries
IoT in Action

6|30|15   |   1:39   |   (8) comments


Two co-workers discuss the benefits of IoT technology.
LRTV Interviews
Ericsson Opens Up on OPNFV

6|30|15   |   14:16   |   (1) comment


Martin Bäckström, VP and head of industry area Datacom at Ericsson, talks to Light Reading founder and CEO Steve Saunders about the emergence of OPNFV, the importance of standards and Ericsson's OPNFV plans.
LRTV Custom TV
NetNumber Founder Discusses NFV/SDN Impact on SP Networks

6|26|15   |   4:15   |   (0) comments


NetNumber Founder Doug Ranalli examines why SPs need a new network infrastructure for service agility. While NFV and SDN are the tools, the old ways of thinking about signaling control are inhibitors. Doug provides his recommendations.
LRTV Custom TV
Orchestrating NFV vCPE Services Across Multivendor Networks

6|26|15   |   5:46   |   (0) comments


Nirav Modi provides an overview of vCPE, the fastest-growing NFV use case, showing how Cyan's Blue Planet orchestrates vCPE services across a multivendor infrastructure to rapidly deliver new managed services for business customers.
LRTV Custom TV
ZTE at LTE Summit Amsterdam 2015

6|26|15   |     |   (0) comments


As one of the leading global telecommunications providers, ZTE presented its cutting-edge technology at LTE World Summit 2015 in Amsterdam. On display at ZTE's booth were the latest R&D achievements in wireless, 5G development, HetNet, deep convergence of FDD and TDD, and RCS/IMD/iSDN/vCN.
Upcoming Live Events
September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 6, 2015, The Westin Peachtree Plaza, Atlanta, GA
October 6, 2015, Westin Peachtree Plaza, Atlanta, GA
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
All Upcoming Live Events
Infographics
Hot Topics
Who's Feeding Fiber to LinkNYC Hotspots?
Mari Silbey, Senior Editor, Cable/Video, 6/29/2015
What's a Gigabit Good For?
Carol Wilson, Editor-at-large, 7/1/2015
Colt to Jettison Ailing IT Business
Iain Morris, News Editor, 6/30/2015
Eurobites: Activist Investor Takes Stake in AlcaLu
Paul Rainford, Assistant Editor, Europe, 6/30/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Casa Systems has been going from strength to strength over the last couple of years. In 2013, it became the first vendor to ship an integrated CCAP device -- the ...
Cedrik Neike, SVP of Global Service Provider, Service Delivery, at Cisco, talks to Light Reading founder and CEO Steve Saunders about solving service provider customer problems in a virtualized, DevOps world, including multivendor support and the future of network procurement.
Cats with Phones