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Tuesday, 11 September 2012 - Nokia Siemens in talks to sell business support unit: CEO |
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See the best of Reuters photography.  See more | Photo caption  WTC rises again The new World Trade Center surpasses the Empire State Building as the tallest building in New York.  Slideshow  Striking miners Demonstrations continue as wage talks to end the month-long Lonmin strike fail to start as scheduled.  Slideshow  Nokia Siemens in talks to sell business support unit: CEO Tweet Share this Email Print Related News New Windows phones from Nokia disappoint investors Wed, Sep 5 2012 Wall Street treads water, stays on ECB watch Wed, Sep 5 2012 Deals of the day -- mergers and acquisitions Tue, Sep 4 2012 ZTE to testify in U.S. probe of alleged China telecom threat Wed, Aug 29 2012 Samsung steals march on Nokia with first Windows phone Wed, Aug 29 2012 Related Topics Tech » Deals » Global Deals Review: 2011 Q3 » Global Deals Review: 2011 Q2 » Global Deals Review » Inflows Outflows » Media » The German headquarters of Nokia Siemens Networks is pictured in Munich November 4, 2009. Credit: Reuters/Michaela Rehle By Harichandan Arakali BANGALORE | Tue Sep 11, 2012 7:16am EDT BANGALORE (Reuters) - Mobile network equipment maker Nokia Siemens Networks NOKI.UL is in talks with various companies to sell its business support systems (BSS) unit, its chief executive said, as it looks to ditch some product lines and focus on mobile broadband. Formed by Nokia (NOK1V.HE) and Siemens (SIEGn.DE) in 2007, Nokia Siemens has struggled for profitability due to pricing pressure from Chinese rivals ZTE Corp (000063.SZ) and Huawei Technologies Co Ltd HWT.UL and Sweden's Ericsson (ERICb.ST) in a broad economic downturn that has crimped spending by telecoms companies. Overall spending by telecom operators is expected to be flat this year, CEO Rajeev Suri said in Bangalore on Tuesday, although Nokia Siemens sees "some rebound" in investments by customers in the United States in the current second half. To improve profitability, Nokia Siemens is selling non-core units and laying off about a quarter of its staff. "I would say overall we have about six divestments that already took place," Suri told reporters. "They're either not core to our mobile broadband or we see that the profitability is not where we want it to be." The company has sold off its network equipment for wired networks and exited the market for WiMax, a wireless technology that has failed to win as much support among carriers as Long Term Evolution (LTE). Earlier this month, Ericsson was reported to be in pole position to buy Nokia Siemens' BSS unit, which provides billing and charging systems for telecoms operators. Suri said the group's restructuring was on track, with the company about six months ahead of its plans. He expects headcount in India to increase after the restructuring, as the company scales up its offshore services capabilities in the country. The company currently has around 10,000 staff in India, plus another 5,000 contractors. The restructuring seems to be paying off with Nokia Siemens generating positive cash flow for three straight quarters, and Suri expects that to be sustainable. "We've taken out significant amount of headcount already, we're on track in the business line divestiture as well. As I said, we have a couple more (divestments) to go, but we're on track there as well." (Reporting by Harichandan Arakali; Writing by Aradhana Aravindan; Editing by Ian Geoghegan) Tech Deals Global Deals Review: 2011 Q3 Global Deals Review: 2011 Q2 Global Deals Review Inflows Outflows Media Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. 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Add yours using the box above.   Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Connect with Reuters Twitter   Facebook   LinkedIn   RSS   Podcast   Newsletters   Mobile About Privacy Policy Terms of Use AdChoices Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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