Nokia 2011 Annual Report Download - page 65

In June 2011, Nokia Siemens Networks announced that it would take steps to reduce the teams
supporting the WiMAX and GSM businesses acquired from Motorola Solutions in response to lower
demand for those products and services caused by the delay in closing the acquisition.
Initially, Nokia Siemens Networks aims to redeploy more than 1 200 people from the WiMAX and GSM
businesses by shifting them to work on growth products and projects such as LTE and WCDMA. Nokia
Siemens Networks also expects to reduce the overall global headcount related to the acquired
Motorola assets by approximately 1 500. The changes began in 2011 and are expected to be
completed in 2012. In November 2011, Nokia Siemens Networks announced its intention to sell the
former Motorola Solutions’ WiMAX business to NewNet Communications Technologies.
New Strategy and Restructuring Program
In November 2011, Nokia Siemens Networks announced a new strategy, including changes to its
organizational structure and an extensive global restructuring program, aimed at maintaining and
developing Nokia Siemens Networks’ position as one of the leaders in mobile broadband and services
and improving its competitiveness and profitability. The main elements of the new strategy are as
follows.
Focus on mobile broadband and services: Nokia Siemens Networks believes that the future of the
telecommunications industry will be increasingly dominated by mobile broadband and services.
Consumers are increasingly demanding uninterrupted, ubiquitous access to information, entertainment
and other data across a variety of devices. Nokia Siemens Networks believes that this will create
opportunities for growth and value for the company and therefore intends to focus its resources on
those areas, where it already has the benefit of a strong market share and technological leadership.
Nokia Siemens Networks plans to realign its business to focus on mobile broadband, including optical
networks, customer experience management and services. The Services organization is expected to
further strengthen Nokia Siemens Networks global delivery system.
Nokia Siemens Networks “lead” business areas will be Mobile Broadband and Customer Experience
Management. In these areas, it will maintain, or even in some select areas increase, investment, with
the goal of achieving number one or number two market position in each area.
Closely aligned with its lead segments will be the “attach” business areas. These businesses –
Network Implementation and Care – are also targeted for strong growth in line with lead segments.
In addition, Nokia Siemens Networks will “adapt” other business areas to fit the new strategy, largely
by reshaping to a narrower focus than exists today. For example, Managed Services will focus on
fewer full outsourcing deals and move to target higher value opportunities, particularly related to global
delivery capabilities and Customer Experience Management tools. It will maintain its Consulting and
Systems Integration business, but that will become more closely aligned to the existing portfolio and
targeted segments.
Optical Networks will also be in the “adapt” category, with a focus on building a strong base of select
customers and leveraging its links to mobile broadband.
Business areas that are not consistent with those focus areas are planned to be divested or managed
for value. These include: perfect voice, broadband access, WiMAX, narrowband, microwave transport,
carrier Ethernet, Business Support Systems (BSS), and Communications and Entertainment Solutions
(CES).
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