Nokia Solutions and Networks
|Type||Subsidiary of Nokia|
|Key people||Rajeev Suri (CEO)
Jesper Ovesen (Chairman)
|Products||Mobile Broadband, consultancy and managed services, multimedia technology|
|Revenue||€ 13.1 billion (2012)|
|Operating income||€822 million (2012)|
|Employees||58,411 (end 2012)|
Nokia Solutions and Networks (NSN), formerly Nokia Siemens Networks, is a multinational data networking and telecommunications equipment company headquartered in Espoo, Finland, and wholly owned subsidiary of Nokia Corporation. It was a joint venture between Nokia of Finland and Siemens of Germany known as Nokia Siemens Networks. NSN has operations in around 150 countries. In 2013, Nokia acquired 100% of the company, with a buy-out of Siemens AG.
The company was created as the result of a joint venture between Siemens Communications division (minus its Enterprise business unit) and Nokia's Network Business Group. The formation of the company was publicly announced on 19 June 2006. Nokia Siemens Networks was officially launched at the 3GSM World Congress in Barcelona in February 2007. Nokia Siemens Networks then began full operations on 1 April 2007 and has its headquarters in Espoo, Greater Helsinki, Finland. According to Siemens, Siemens only retain a non-controlling financial interest in NSN, with the day-to-day operations residing with Nokia.
In January 2008 Nokia Siemens Networks acquired Israeli company Atrica, a company that builds carrier-class Ethernet transport systems for metro networks. The official release did not disclose terms, however they are thought to be in the region of $100 million. In February 2008 Nokia Siemens Networks acquired Apertio, a Bristol, UK-based mobile network customer management tools provider, for €140 million. With this acquisition Nokia Siemens Networks gained customers in the subscriber management area including Orange, T-Mobile, O2, Vodafone, and Hutchison 3G. On 19 July 2010, Nokia Siemens Networks announced it would acquire the wireless-network equipment division of Motorola. The acquisition was completed on 29 April 2011 for $975 million in cash. As part of the transaction approximately 6,900 employees transferred to Nokia Siemens Networks.
On 23 November 2011, Nokia Siemens Networks announced that it would refocus its business on mobile broadband equipment, the fastest-growing segment of the market. This refocus resulted in the restructuring of the company and the planned layoffs of 17,000 employees. The plan would reduce the company’s work force by 23% from its 2011 level of 74,000, and would help the company trim annual operating expenses by $1.35 billion by the end of 2013.
After the restructuring process, Nokia Siemens Networks has brought in a positive turn around to its businesses. The bottom line and operating margins have risen to approximately 10%, which is a significant shift from the previous sub-zero margins, with positive cash flows for the last six quarters.
On 7 August 2013, the company completed the acquisition of Siemens' stake and renamed as "Nokia Solutions and Networks". After this acquisition NSN is fully owned by Nokia.
Nokia Solutions Networks operates in more than 150 countries worldwide and has about 58,400 employees (end 2012). Most of those employees work in one of the six central hubs around the world, including: Espoo in Finland, Munich in Germany, Budapest in Hungary, Wrocław and Cracow in Poland, Chennai and Bangalore in India, Guangdong in China and Lisbon in Portugal. Its major manufacturing sites are in Chennai in India, China, Oulu in Finland, and in Berlin, Germany.
Rajeev Suri is the current Chief Executive Officer of Nokia Solutions Networks. In this position he succeeds Simon Beresford-Wylie, who stepped down (1 October 2009) after leading the company's integration. Nokia Solutions Networks' Chief Financial Officer (CFO) is Samih Elhage. Prior to this, in March 2012, Samih Elhage was appointed Chief Operating Officer, reporting to Rajeev Suri. With effect from February 2013, the post of COO was discontinued. The Chairman of the board of directors is now Jesper Ovesen, previous chairman was Nokia's former CEO Olli-Pekka Kallasvuo, vice chairman is Rudi Lamprecht (Executive Advisor to the CEO of Siemens AG).Cite error: A
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- Chief Executive Officer (CEO): Rajeev Suri
- Chief Financial Officer (CFO): Samih Elhage
- Chief Restructuring Office: Alexander Matuschka
- Executive Vice President / President Asia, Middle East and Africa: Ashish Chowdhary
- Executive Vice President / President of North America: Rick Corker
- Executive Vice President / President Europe and Latin America: René Svendsen-Tune
- Executive Vice President, Global Services: Eva Elmstedt
- Executive Vice President Technology and Innovation: Hossein Moiin
- Executive Vice President Mobile Broadband: Marc Rouanne
- Executive Vice President Human Resources: Hans-Jürgen Bill
- Executive Vice President Marketing, Communications and Corporate Affairs: Barry French
- Vice President Quality: Deepti Arora
- Vice President Corporate Strategy and CEO Office: Kathrin Buvac
- General Counsel: Maria Varsellona
Lawful interception controversy
News reports claimed that the company had provided internet censorship capabilities to the Iranian government. In June 2009 Nokia Siemens Networks stated that, whilst they had provided lawful interception capable equipment or services to Iran, capable of monitoring local voice calls, they had not provided equipment or services that provided deep packet inspection capabilities, speech recognition, Internet or network monitoring or web censorship capabilities.
Former Nokia executive Chip Pitts has said that issues are raised from the supply of a voice monitoring capability to Iran by Nokia Siemens Networks.[when?] In September 2010 Nokia-Siemens stated that it halted work relating to call monitoring in Iran in 2009, having divested its call monitoring business in the same year. It also had limited its activities in Iran and stated that it was "aware of credible reports that the Iranian authorities use communications technology to suppress political activity in a way that is inconsistent with that government's human rights obligations".
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- Eli Lake (April 13, 2009). "Fed contractor, cell phone maker sold spy system to Iran". The Washington Times.
- "Nokia Siemens Networks acquires Atrica, Ethernet systems company". Venturebeat. Retrieved 2008-10-28.
- "Nokia Siemens Networks Completes Acquisition of Carrier Ethernet Specialist Atrica". Nokia Siemens Networks. Retrieved 2008-10-28.
- "Nokia Siemens Networks Apertio Acquisition Press Release". Nokia Siemens Networks. Retrieved 2008-10-28.
- "Apertio Press Release on Nokia Siemens Networks acquisition". Apertio. Archived from the original on 13 March 2008. Retrieved 2008-10-28.
- "The Register article on Nokia Siemens Networks acquisition of Apertio". The Register News. Retrieved 2008-10-28.
- Nokia Siemens Agrees to Pay Cash for Division of Motorola
- O'BRIEN, KEVIN J. (23 November 2011). "Nokia Siemens to Cut 23 Percent of Work Force". The New York Times. Retrieved 2011-11-24.
- "Nokia Siemens to cut 17,000 jobs". 23 November 2011.
- "Nokia Siemens closer to becoming an 'independent entity'". http://www.fiercebroadbandwireless.com/. Fierce Broadband Wireless. Retrieved 26 April 2013.
- "Press Release : Munich, Germany – 11 November 2008", www.nokiasiemensnetworks.com (Nokia Siemens Networks), 11 November 2008
- "Nokia Siemens CFO Exits After Restructuring Drive". Fox Business. 2013-02-19. Retrieved 2013-08-05.
- "Samih Elhage to join Nokia Siemens Networks as chief operating officer". Nokia Siemens Networks. 2012-03-16. Retrieved 2013-08-05.
- "Hi-tech helps Iranian monitoring". BBC News. 2009-06-22. Retrieved 2010-05-20.
- Stelter, Brian; Stone, Brad (2009-06-23). "Web Pries Lid of Iranian Censorship". The New York Times.
- Provision of Lawful Intercept capability in Iran, Nokia Siemens Networks, 22 June 2009, archived from the original on 22 June 2009
- Kamali Dehghan, Saeed (2009-07-14). "Iranian consumers boycott Nokia for 'collaboration'". The Guardian (London: Guardian News and Media Limited). Retrieved 2009-07-27.
- "Clarification on Nokia Siemens Networks’ business in Iran", www.nokiasiemensnetworks.com (Nokia Siemens Networks), 28 September 2010
- Nokia Solutions and Networks Homepage
- Nokia Siemens Networks corporate blog
- Nokia Corporation
- Siemens AG
- Connectivity Scorecard website
- Press Release 1 Jul 2013