Nokia 2011 Annual Report Download - page 67

Divestments
Consistent with its new strategy of focusing on core mobile broadband and services technologies and
businesses, Nokia Siemens Networks has announced its intentions to divest a number of businesses:
• In November 2011, Nokia Siemens Networks announced that it planned to sell its microwave
transport business, including its associated operational support systems and related support
functions, to Dragonwave Inc. Under the terms of the agreement, approximately 360 Nokia
Siemens Networks employees are expected to transfer to Dragonwave. The companies
expect to complete the planned acquisition and supply agreements during the first quarter of
2012.
• In November 2011, Nokia Siemens Networks announced that it planned to sell the former
Motorola Solutions’ WiMAX business to NewNet Communications Technologies (“NewNet”).
Under the terms of the agreement, NewNet would acquire the complete WiMAX product
portfolio, the related employees and assets, as well as active customer and supplier
contracts. Approximately 300 Nokia Siemens Networks employees will transfer to NewNet.
The transaction is expected to be completed during the first quarter of 2012.
• In December 2011, Nokia Siemens Networks announced that it planned to sell its fixed line
broadband access business and associated professional services and network management
solutions to Adtran, a leading provider of next-generation networking solutions. The planned
divestiture would include the broadband access intellectual properties, technologies and the
established customer base. The transaction is expected to be completed during the second
quarter of 2012.
• At December 31, 2011, Nokia Siemens Networks was in negotiations to dispose of the assets
and liabilities related to its obligations under the Norwegian nationwide TETRA Nødnett
project. Accordingly, these assets and liabilities have been classified as held for sale. On
January 11, 2012, Nokia Siemens Networks entered into an agreement to transfer these
assets and liabilities including associated employees to Motorola Solutions Inc. The
transaction was completed during the first quarter of 2012.
The following business overview continues to describe Nokia Siemens Networks’ business
prior to the announcement of its new strategy and changes in operational structure in order to
align with the financial segment reporting and related operating and financial review discussion
through December 31, 2011 contained in this annual report.
Business Units
Network Systems: This business unit offers communication service providers both fixed and mobile
network infrastructure.
For wireless networks, Network Systems develops and manufactures GSM/EDGE and WCDMA/HSPA
radio access networks for network operators. It also develops innovative products such as I-HSPA and
new technologies such as LTE to support the uptake of mobile data services and to introduce
simplified network architecture for wireless and mobile broadband applications. Nokia Siemens
Networks is a leader in LTE, with 50 commercial LTE contracts. LTE is the fourth generation of
wireless network technology which has emerged as the industry standard platform for future high-
speed mobile broadband networks. It also has a strong leadership position in the WCDMA market, with
more 3G customers than any other vendor, and enjoys leadership positions in several other areas.
The main products are base stations, base station controllers and related software. Networks Systems’
flagship product is the Flexi Multiradio base station, a software defined radio supporting GSM, 3G and
LTE radio technologies with common IP/Ethernet, Optical or Microwave transport. The Flexi Multiradio
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