Nokia 2011 Annual Report Download - page 71

Nokia Siemens Networks’ customers. Consistent with industry practice, Nokia Siemens Networks
manufactures telecommunications systems on a contract-by-contract basis.
Nokia Siemens Networks generally prefers to have multiple sources for its components, but in certain
cases it sources some components from a single or a small number of selected suppliers. These
business relationships are stable and typically involve a high degree of cooperation in research and
development, product design and manufacturing to ensure optimal product interoperability.
Research and Development
The Chief Technology Office focuses on research, standardization, intellectual property rights and
innovation. It cooperates with universities, research institutes, leading industry partners and other
industry cooperation bodies worldwide. The focus is on leading edge technologies three or more years
out.
Nokia Siemens Networks’ business units focus on understanding short- and medium-term customer
needs and the overall development of the market to define requirements for product and solution
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 research and development.
Nokia Siemens Networks has research and development 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 to ensure that new services operate as intended.
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, research and development focuses on self organized networks.
Nokia Siemens Networks also conducts research and development to support its customers when
leveraging communications technologies for servicing other industries like the energy and transport
sectors.
Nokia Siemens Networks conducts research and development 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 appropriate
intellectual property protections, including patents, patent applications, design patents, trade secrets,
trademark registrations and copyrights. Nokia Siemens Networks owns a significant portfolio
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