Euronews: Is NSN Cutting More Jobs?

Nokia Solutions and Networks (NSN), Deutsche Telekom AG and Vodafone Group plc start the ball rolling in today's trawl of the EMEA headlines.

  • A Bloomberg report, citing three sources, suggests that the newly named NSN is considering job cuts that would reduce its workforce by a further 8,500 positions, about 17 percent of the current 50,500 employees, by the end of 2014. NSN declined to comment, but one industry source close to the vendor questioned the report, telling Light Reading that no such plans were in place. The vendor has reduced its workforce by 23,500 (through redundancies and divestments) since November 2011, when it introduced a major restructuring program aimed at turning the loss-making vendor into a profitable company. Nearly two years after those cost-cutting plans were implemented, NSN is showing signs of greater financial stability. (See NSN Becomes NSN, NSN: The Recovery Looks Real and NSN Could Lose More Than 17,000 Staff.)

  • Things are looking up at Deutsche Telekom, which recorded its first increase in quarterly revenue in three years in its second-quarter financials. Revenue grew 5.4 percent year-on-year to €15.2 billion ($20.3 billion), helped by a strong performance from its T-Mobile US subsidiary, which added 688,000 contract users during the quarter, and on its home turf, where it added 434,000 mobile subscribers. According to Bloomberg, the German giant has also set aside €500 million ($667.6 million) to fund its attempt to nab customers from Verizon Wireless and AT&T Inc. in the U.S.

  • Vodafone UK is to promote its 4G packages from Aug. 12 and launch its LTE service in London from Aug. 29, after which it will offer the service in Birmingham, Bradford, Coventry, Edinburgh, Glasgow, Leeds, Leicester, Liverpool, Manchester, Newcastle, Nottingham and Sheffield by the end of the year. Vodafone has chosen to focus its promotion on the content (particularly sports and music) on offer as part of its 4G service, rather than mobile broadband speeds. Its announcement comes only days after Telefónica UK Ltd., better known for its O2 brand, announced it will also launch its 4G service on Aug. 29. (See O2 Brings 4G Rivalry to the UK.)

  • A1, the domestic subsidiary of Telekom Austria AG, has deployed Coriant GmbH & Co. KG's hiT 7300 coherent optical transport platform to increase the capacity of its network infrastructure and improve the performance of its converged fixed-line and mobile offerings. A1's new DWDM backbone connects the Austrian capital, Vienna, with all the other major cities in the country. (See A1 Telekom Austria Deploys Coriant.)

  • MegaFon's plan to buy fellow Russian mobile operator Scartel, which boasts a 4G network and is best known for its Yota service, appears to be coming to fruition, with the $1.18 billion acquisition supported by MegaFon shareholder TeliaSonera. For more on the proposed deal, see this Bloomberg report.

    — Paul Rainford, Assistant Editor, Europe, Light Reading

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