Nokia 2011 Annual Report Download - page 64

Location & Commerce also competes with companies such as TomTom, which licenses its map data
and where competition is focused on the quality of the map data and pricing, and Open Street Map,
which is a community-generated open source map available to users free of charge. Aerial, satellite
and other location-based imagery is also becoming increasingly available and competitors are offering
location-based products and services with the map data to both business customers and consumers in
order to differentiate their offerings.
Nokia Siemens Networks
Overview
Nokia Siemens Networks is one of the leading global providers of telecommunications infrastructure
hardware, software and services. Focusing on innovation and sustainability, it currently provides a
portfolio of mobile, fixed and converged network technology, as well as professional services including
managed services, consultancy and systems integration, deployment and maintenance. In its core
market, network equipment and services for mobile network operators, Nokia Siemens Networks had
the second highest net sales worldwide to mobile network operators, with a leading position in 3G and
LTE, in 2011.
Nokia Siemens Networks has a broad portfolio of products and services designed to address evolving
needs of network operators from GSM to LTE wireless standards, a base of over 600 customers in
over 150 countries serving over 2.5 billion subscribers and one of the largest services organizations in
the telecommunications infrastructure industry. The company’s global customer base includes network
operators such as Bharti Airtel, China Mobile, Deutsche Telekom, France Telecom, Softbank,
Telefonica O2, Verizon and Vodafone. As of December 31, 2011, Nokia Siemens Networks employed
73 686 people.
Nokia Siemens Networks began operations on April 1, 2007. Nokia Siemens Networks, jointly owned
by Nokia and Siemens and consolidated by Nokia, combined Nokia’s networks business and Siemens’
carrier-related operations for fixed and mobile networks. Nokia Siemens Networks’ operational
headquarters is in Espoo, Finland. The Board of Directors of Nokia Siemens Networks is comprised of
seven directors, four appointed by Nokia and three by Siemens, and Nokia appoints the CEO.
Motorola Solutions Acquisition
In April 2011, Nokia Siemens Networks acquired the majority of the wireless network assets of
Motorola Solutions for a total consideration of EUR 642 million. From April 30, 2011, certain of
Motorola Solutions’ products and services and approximately 6 900 employees were transferred to
Nokia Siemens Networks. The agreement to acquire the assets was originally reached in July 2010,
but completion was delayed by regulatory approvals.
The acquisition increased Nokia Siemens Networks’ global presence in GSM, DCMA, WCDMA,
WiMAX and LTE, and strengthened its market position in key geographic markets with 50 customers in
52 countries, including some of the largest network operators globally, such as Verizon Wireless, KDDI
and China Mobile.
In addition to bolstering Nokia Siemens Networks’ research and development, with facilities including
sites in the United States, China, Russia, India and the UK, the Motorola Solutions acquisition has
enhanced the company’s capabilities in CDMA, bringing its global presence in CDMA to 30 live
networks in 22 countries. The acquired Motorola assets have also enhanced Nokia Siemens Networks’
scale in GSM and LTE technologies, notably reinforcing its position in GSM with the addition of more
than 80 live networks in 66 countries.
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