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Euronews: Nokia Shifts Device Assembly to Asia

Nokia Corp. (NYSE: NOK), Ericsson AB (Nasdaq: ERIC) and Telenor Group (Nasdaq: TELN) lead Wednesday's hack through the EMEA telecom news thicket.

  • Nokia is shedding another 4,000 jobs at its plants in Komaron (Hungary), Reynosa (Mexico) and Salo (Finland). All the device assembly work that is currently carried out at these sites will be shifted to Asia, leaving just some "product customization" work for those who remain. These cuts come in addition to those previously announced by the troubled handset giant, which is still playing smartphone catch-up with its Lumia models. (See Nokia to Shed 4,000 Factory Jobs, Nokia Cuts 4,000 More Jobs , Nokia Cuts 4,000 Jobs, Sheds Symbian and Nokia to Cut Jobs, Stay in Finland.)

  • France's Bouygues Telecom has chosen Ericsson to upgrade its 2G and 3G networks and roll out an LTE network in the heavily populated Île de France, Centre-Alpes and Méditerranée regions. The 2G/3G part of the project will be based on Ericsson's RBS 6000 equipment. (See Ericsson Lands French LTE Deal, Euronews: Ericsson Bags Backhaul Deals, Ericsson Ousted From Shared Network and Ericsson Suffers Margin Crunch.)

  • Norway-based Telenor posted a net loss of 1.94 billion Norwegian Kroner (US$336 million) in its fourth quarter, comparing not entirely favorably with a profit of NOK 2.1 billion ($364 million) in the same period a year earlier. But the figures were hit by an impairment charge relating to its Indian unit, Uninor , which has just had its licenses withdrawn, and business integration costs at VimpelCom Ltd. (NYSE: VIP), in which it holds a substantial stake. Telenor actually claims organic revenue growth of 7 percent for the fourth quarter. (See Asia, Data Services Drive Telenor in Q4 and India in Shock as 122 Licenses Canceled.)

  • U.K. cable operator Virgin Media Inc. (Nasdaq: VMED) is seeing strong growth from its TiVo-driven TV service, with its TiVo customer base more than doubling in the fourth quarter at 273,000 net additions. Fourth-quarter net income was up 29.9 percent, from £37.1 million ($58.9 million) in 2010 to £48.2 million ($76.5 million) this time round. (See Virgin Media Sets TiVo Price.)

    — Paul Rainford, Assistant Editor, Europe, Light Reading

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