Light Reading
In today's EMEA roundup: NSN's "non-profitable field service subsidiary" faces the axe; Redknee to buy NSN's BSS unit; Telenor probe

Euronews: NSN Shuts German Services Unit

Paul Rainford
12/5/2012
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Nokia Networks dominates proceedings, one way and another, in today's EMEA roundup.

  • Well, it's a case of light and shade for Nokia Siemens Networks today. On the darker side, at least where its workers are concerned, is the news that it is closing what it calls its "non-profitable field service subsidiary" in Germany. According to Reuters, the decision was prompted by the loss of a key contract with Deutsche Telekom AG (NYSE: DT). Up to 1,200 workers could lose their jobs as a result of the decision -- and those redundancies are on top of the 17,000 job cuts announced by the vendor last November. The shutters will come down on the unit by the end of 2013. But on the other hand ... (See NSN to Cut 17,000 Staff.)

  • ... NSN has reached a deal with Redknee Inc. (Toronto/London AIM: RKN) to offload its business support systems (BSS) unit, for a price of up to €40 million ($52.5 million), of which €25 million ($32.8 million) is to be paid in installments, subject to certain sales targets being reached. It had been widely assumed that BSS had a place on NSN's Things Not To Do Anymore list, and Light Reading had previously tagged Redknee as a possible bidder for those assets. (See Redknee to Pay $52M for NSN's BSS Unit, Is That a Redknee War Chest? and Is NSN Close to BSS Sale?)

  • Nordic operator Telenor ASA (Nasdaq: TELN) has had its offices raided, reports Reuters, as the Norwegian authorities pursue an investigation into suspected anti-competitive practices. Telenor has extensive interests in central and eastern Europe, but the probe relates specifically to its activities on its home ground.

  • BT Group plc (NYSE: BT; London: BTA), the U.K. incumbent, has butchered the wholesale price of its fiber-to-the-premises (FTTP) product, from £60 ($96) per month to £38 ($61) per month, per line. It is also launching what it calls Fibre-to-the-Premises on Demand (FoD), which will carry the same monthly charge on top of an initial construction charge. This charge will vary depending on how close the premises in question are to BT's fiber network. (See BT Cuts Wholesale FTTP Price .)

    — Paul Rainford, Assistant Editor, Europe, Light Reading

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