Menu
Nokia Siemens Networks sells optical networking business

Nokia Siemens Networks sells optical networking business

The network vendor continues to shed units as it wants to concentrate on mobile networks

Nokia Siemens Networks is selling its optical networking business unit to private investment firm Marlin Equity Partners, the latest in a series of sell-offs as the vendor concentrates on mobile broadband networks.

The two companies didn't announce any financial details of the deal, but the deal will result in the Optical Networks business unit becoming an independent company, according to a statement from Nokia Siemens published on Monday.

As a result of the transaction, up to 1,900 employees from the optical business unit and related functions are expected to transfer to the new company. They are mostly based in Germany, Portugal and China, the statement said.

The planned transaction is another step in the transformation of Nokia Siemens Networks into a mobile broadband specialist.

Earlier this year the company closed the sale of its IPTV assets to Belgacom and Accenture; its microwave transport business to DragonWave, and the fixed line Broadband Access business unit, associated professional services and network management solutions, to Adtran.

The focus on mobile broadband seems to have helped Nokia Siemens turn a corner.

Helped by operators commercializing LTE in Japan, it passed Alcatel-Lucent to become the number-two LTE vendor during the third quarter by revenue from radio access networks, according to market research company Dell'Oro Group.

Ericsson was the largest LTE vendor, Dell'Oro said.

Also, Nokia Siemens' net sales increased by 3 percent year on year during the third quarter, and last year's third-quarter operating loss of ¬114 million (US$148 million) became a ¬182 million operating profit in the same period this year, Nokia reported.

Nokia Siemens' optical networking unit mainly sells DWDM (dense wavelength-division multiplexing) equipment, which is used in operator backbone networks. Its competition includes the likes of Alcatel-Lucent, Ciena, Cisco Systems and Huawei Technologies.

The new optical networking company will be headquartered in Munich, Germany. The transaction is expected to close in the first quarter of 2013.

Follow Us

Join the ARN newsletter!

Error: Please check your email address.

Tags business issuestelecommunicationCarriersNokia Siemens NetworksNetworkingMergers and acquisitionsbroadband

Upcoming

Slideshows

IN PICTURES: Nutanix's .NEXT channel event in Sydney (+20 photos)

IN PICTURES: Nutanix's .NEXT channel event in Sydney (+20 photos)

Nutanix recently held its customer and channel event, .NEXT, in Sydney. The event, held at the Sheraton on the Park saw attendance from more than 150 channel and technology partners and customers. It was the first in a series of events Nutanix is holding in A/NZ in August and September, the objective of which is to brief partners and customers on “what’s next” in the design and management of datacentre technology.

IN PICTURES: Nutanix's .NEXT channel event in Sydney (+20 photos)
IN PICTURES: EDGE 2015 sponsor debrief (+23 photos)

IN PICTURES: EDGE 2015 sponsor debrief (+23 photos)

Some of the sponsors of ARN's inaugural EDGE 2015 event got together at the ARN office for a debrieef of the event. Over some drinks and cheese, these attendees got an update on some key statistics that arose from the EDGE event and discussed potential topics and improvements that can be made at next year's event.

IN PICTURES: EDGE 2015 sponsor debrief (+23 photos)
IN PICTURES: ARN Distributor Roundtable, Sydney, 26.08.15 (+26 photos)

IN PICTURES: ARN Distributor Roundtable, Sydney, 26.08.15 (+26 photos)

ARN hosted a distributor roundtable at Cafe Del Mar in Sydney, at which attendees and their partners discussed the changing role of the traditional IT distributor. They spoke about the challenges of digital disruption, the blurring lines of the channel in the age of digital transformation, and examined the ever-evolving business models. This roundtable was sponsored by Distribution Central, Exclusive Networks, Rhipe, and Hemisphere Technologies. Photos by ARN Editorial Director, Mike Gee.

IN PICTURES: ARN Distributor Roundtable, Sydney, 26.08.15 (+26 photos)

iasset.com is a channel management ecosystem that automates all major aspects of the entire sales, marketing and service process, including data tracking, integrated learning, knowledge management and product lifecycle management.

Show Comments