2014

Strategy Analytics sees Expanding SDN Future for NSN as "mini Ericsson" following Nokia Device Sale to Microsoft With Cash from Microsoft Nokia can finance NSN Growth and Acquisitions

BOSTON, Sept. 11, 2013 /PRNewswire/ -- After selling its Device business and issuing convertible bonds to Microsoft, it is estimated that Nokia will have about $10 billion in net cash. Nokia's Solutions and Networks (NSN) - formerly Nokia Siemens Networks - will now represent almost 90 percent of Nokia Revenues. Following its successful restructuring and absorption of part of Motorola's Solutions business NSN has been cash flow positive for four quarters with increasing profits despite a tough market.

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NSN is poised for growth in Radio Access Networks (RAN), Software Defined Networking (SDN), Cloud Based Voice and IMS services and - with new investment - possibly in the Infrastructure core. This could create a 'mini Ericsson' look alike with a very competitive cost structure

Strategy Analytics Wireless Networks and Platforms (WNP) service new report, 'Will Nokia NSN Become A 'Mini Ericsson' After Selling Device Business to Microsoft?' evaluates how Nokia might expand NSN in several key areas.

According to Guang Yang, Senior Analyst  Wireless Networks and Platforms, "NSN might do well to consider using some of Microsoft's money to enhance its RAN offering by acquiring one of the emerging Self Organizing Network (SON) vendors or expand its SDN focus." He continued, "SDN offers a disruptive opportunity for vendors to break into the market with OpenFlow compliant software on `commodity hardware' and NSN's continued restructuring that moves it away from specialty hardware manufacturing puts it in a very strong position to embrace the low cost SDN model even faster than competitors like Huawei, Ericsson, Alcatel Lucent and Cisco."

Sue Rudd, Director Service Provider Analysis commented, "NSN's major weakness is its lack of strong in-house IP software routing and gateway expertise that can add unique value to its 4G 'All-IP architecture and the SDN Control Plane. Strong and distinctive partnerships or even acquisitions in this area will be essential for Multi-Vendor Hetnets, Smart Backhaul, Wi-Fi Roaming and Content Delivery Networking."

For specific examples of NSN's recent successes and Strategy Analytics speculation about specific potential partners or acquisitions see the full report. Recent blogs that provide additional useful background are: Nokia buys profitable NSN at fire sale price and An important step for Alcatel-Lucent's LTE overlay strategy

Additional Strategy Analytics analysis of mobile infrastructure requirements can be found in:
'Complete Mobile Infrastructure Player? Did Cisco just add final piece to Mobile Jigsaw Puzzle?' and complimentary Executive Summary. Also See: 'Mobile Operators Virtualize to Win with SDN and Services at the Edge: Executive Summary', the full SDN report and SON Report.

About Strategy Analytics
Strategy Analytics, Inc. provides the competitive edge with advisory services, consulting and actionable market intelligence for mobile and wireless companies. With offices in North America, Europe and Asia, Strategy Analytics delivers insights that support winning strategies for service providers and vendors www.StrategyAnalytics.com 

European/Asian Contact: Guang Yang, +44 1908 423 662, GYang@strategyanalytics.com

US Contact: Sue Rudd, +1 617 614 0709, srudd@strategyanalytics.com   

SOURCE Strategy Analytics



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