Nokia 2010 Annual Report Download - page 62

functionality that will meet its customers’ requirements in the market. Each business unit is
responsible for roadmaps for products, services, solutions and applications, while also managing
actual development of hardware and software required for building products and solutions. Business
units closely work together with industry partners to leverage their innovation into the Nokia
Siemens Networks products, services and solutions while focusing their own R&D.
Nokia Siemens Networks has R&D centers in China, Finland, Greece, India, Israel, Italy, Portugal,
Poland and the United States. Nokia Siemens Networks research and development work focuses on
wireless and wireline communications solutions that enable communications services for people,
machines, businesses and public authorities. These include wireless connectivity solutions like
GSM/EDGE, 3G/WCDMA/HSPA/HSPA+, TDLTE and LTE and wireline connectivity solutions based on copper
(ADSL, VDSL2 and Ethernet), and fiberbased next generation optical access, or NGOA. Nokia Siemens
Networks also develops the software, solutions and services that drive all these technologies, as well
as the enduser analytics and insight that are crucial to ensuring that new services deliver on their
promise.
In the transport and aggregation domain, carrier ethernet, next generation packet optical transport
networks consisting of optics, microwave and IP routers, IP traffic analysis and multiaccess mobility
are among the key focus areas. Within the applications domain, research and development focuses on
service enabling, network valueadded services, identity management, and subscriber and device
profile data storage. It also focuses on peertopeer, or persontoperson services, IP connectivity
session control (IMS) and VoIP, network/service/subscriber/device management, and business
management for instance for online and offline charging for post and prepaid subscribers.
Additionally, R&D focuses on Self Organized Networks.
Nokia Siemens Networks also conducts R&D to support its customers when leveraging
communications technologies for servicing other industries like the energy and transport sectors.
Nokia Siemens Networks conducts R&D internally as well as with industry partners where additional
capacity or expertise is required.
Patents and Licenses
Nokia Siemens Networks seeks to safeguard its investments in technology through adequate
intellectual property protections, including patents, patent applications, design patents, trade secrets,
trademark registrations and copyrights. Nokia Siemens Networks owns a significant portfolio
comprising IPR that was transferred from its parent companies at formation and IPR filed since its
start of operations. Nokia Siemens Networks is a world leader in the research and development of
wireless technologies, as well as transport and broadband technologies, and it has robust patent
portfolios in a broad range of technology areas. The IPR portfolio includes standardsrelated essential
patents and patent applications that have been declared by Nokia and Siemens. Nokia Siemens
Networks has declared its own essential patents and patent applications based on evaluation of
pending cases with respect to standards. Nokia Siemens Networks receives and pays certain patent
license royalties in the ordinary course of its business based on existing agreements with
telecommunication vendors.
Competition
Conditions in the market for mobile and fixed network infrastructure and related services improved,
but remained challenging and intensely competitive in 2010. The market continued to be
characterized by mixed trends as growth in mobile broadband and services were offset by equipment
price erosion, a maturing of legacy industry technology and intense price competition. During 2010,
an industry wide issue related to security clearances in India, which was preventing the completion of
product sales to customers, further impacted the market. Based on preliminary estimates, Nokia and
Nokia Siemens Networks believe the market for mobile and fixed infrastructure and related services
was approximately flat in euro terms in 2010, compared to 2009.
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