& cplSiteName &

What Will Redknee Get From NSN's BSS Biz?

Michelle Donegan
News Analysis
Michelle Donegan
12/6/2012
50%
50%

Nokia Networks has revealed details about which business support system (BSS) products will be divested to Redknee Inc. (Toronto TSX: RKN) if the proposed acquisition goes through as planned before July next year. (See Redknee to Pay $52M for NSN's BSS Unit.)

Canadian Service Provider Information Technology (SPIT) vendor Redknee has agreed to buy NSN's BSS business unit for up to €40 million (US$52.5 million), of which €15 million ($19.7 million) in cash is to be paid upon closing and up to €25 million ($32.8 million) more would be paid over 12 to 36 months for performance bonuses. (See Redknee to Acquire NSN's BSS Biz.)

With this deal, Redknee will gain 1,200 NSN employees and 130 customer relationships. The acquisition will expand Redknee's products, customer base and geographical reach, giving the company's CEO, Lucas Skoczkowski, the scale he has been seeking for some time. (See Redknee CEO: Size Matters and Is That a Redknee War Chest? .)

Indeed, on Redknee's fiscal fourth-quarter and full-year results call on Wednesday, Skoczkowski said that of the 130 NSN customers, about 90 percent would be new to the company and located mainly in Europe, the Middle East, Africa and Asia/Pacific, where the company currently does not have much presence. (See Redknee Posts $1.9M Profit.)

Skoczkowski also said that NSN chose Redknee to buy this business unit because of its ability to leverage and support the products in the long term as well as "leverage the great base of employees. All of that came in to play," he added.

So which products will Redknee get and what will NSN keep?

Accoding to NSN, these are the products that will transfer to Redknee along with the customer relationships:

  • Charge@once unified, a convergent charging product
  • Share@once, a customer administration and customer care product
  • Pay@once, a mobile payment and recharging product
  • iSIM, a device-based secure payment solution
  • @vantage Commander, a network and element management system
  • Charge@once Select and Charge@once Premium, which are charging and prepaid solutions
  • IN@vantage, an intelligent network (IN) solution


The following products will also transfer to Redknee, but NSN will keep the customer relationships. Redknee will then have an OEM relationship with NSN for these products.

  • PCS-5000 policy control server
  • Railway@vantage GSM-R product


As for NSN's service delivery platform (SDP) and next-generation IN product, charge@once application server, the scenario is a bit more complex because some business will go to Redknee and some will remain with NSN. According to NSN, customer projects for this product that involve replacing legacy IN systems or acting as a charging frontend will be transferred to Redknee. NSN will retain those SDP and next-gen IN projects that focus on broader applications, like Instant Messaging.

NSN is also planning to keep part of its mediation product, Charge@once mediate, for its mobile broadband portfolio and particularly for packet core mediation. The corresponding customer projects would remain with NSN. But it is expected that certain convergent mediation projects that have a charging focus will transfer to Redknee, according to NSN.

— Michelle Donegan, European Editor, Light Reading Mobile

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Featured Video
From The Founder
The world of virtualization is struggling to wrench itself away from the claws of vendor lock-in, which runs counter to everything that NFV stands for.
Flash Poll
Upcoming Live Events
March 20-22, 2018, Denver Marriott Tech Center
March 22, 2018, Denver, Colorado | Denver Marriott Tech Center
March 28, 2018, Kansas City Convention Center
April 4, 2018, The Westin Dallas Downtown, Dallas
April 9, 2018, Las Vegas Convention Center
May 14-16, 2018, Austin Convention Center
May 14, 2018, Brazos Hall, Austin, Texas
September 24-26, 2018, Westin Westminster, Denver
October 9, 2018, The Westin Times Square, New York
October 23, 2018, Georgia World Congress Centre, Atlanta, GA
November 8, 2018, The Montcalm by Marble Arch, London
November 15, 2018, The Westin Times Square, New York
December 4-6, 2018, Lisbon, Portugal
All Upcoming Live Events
Hot Topics
21st Century Networking? Welcome to the Lock-In
Steve Saunders, Founder, Light Reading, 2/20/2018
How Long Before We Hit Peak MWC?
Iain Morris, News Editor, 2/23/2018
Stakes Run High for Tivo in Comcast Suit
Mari Silbey, Senior Editor, Cable/Video, 2/20/2018
Liberty Global: Not So Fast on D3.1
Alan Breznick, Cable/Video Practice Leader, Light Reading, 2/20/2018
AT&T Reveals Initial 5G Cities
Dan Jones, Mobile Editor, 2/21/2018
Animals with Phones
Live Digital Audio

A CSP's digital transformation involves so much more than technology. Crucial – and often most challenging – is the cultural transformation that goes along with it. As Sigma's Chief Technology Officer, Catherine Michel has extensive experience with technology as she leads the company's entire product portfolio and strategy. But she's also no stranger to merging technology and culture, having taken a company — Tribold — from inception to acquisition (by Sigma in 2013), and she continues to advise service providers on how to drive their own transformations. This impressive female leader and vocal advocate for other women in the industry will join Women in Comms for a live radio show to discuss all things digital transformation, including the cultural transformation that goes along with it.

Like Us on Facebook
Twitter Feed