Nokia 2012 Annual Report Download - page 66

of approximately 15 300 headcount leaving Nokia Siemens Networks by the end of 2012. Substantial
additional savings have also come from restructuring, outsourcing or similar changes in areas including
real estate, information technology, product and service procurement costs and general and
administrative expenses.
Nokia Siemens Networks continues to target to reduce its annualized operating expenses and
production overheads, excluding special items and purchase price accounting related items, by more
than EUR 1 billion by the end of 2013, compared to the end of 2011.
Organization
Nokia Siemens Networks has two business units. Mobile Broadband provides radio and core network
hardware and software to mobile operators throughout the world, as well as CEM software. Nokia
Siemens Networks’ mobile broadband product portfolio includes the company’s innovative and award-
winning Flexi Multiradio base station. Software offerings, meanwhile, include subscriber data
management and operations support systems which help operators monitor and manage their
networks.
Global Services enables operators to plan, implement, run and upgrade their networks. Nokia Siemens
Networks’ services include network planning and optimization, network implementation, systems
integration and maintenance support. A large and increasing percentage of Nokia Siemens Networks’
services, currently more than one fifth, is delivered through global delivery centers in India and
Portugal, supported by a global network of smaller, specialized centers. These establishments enable
Nokia Siemens Networks to provide customers with access to highly trained and dedicated teams very
cost-effectively through pooling of expertise and economies of scale.
The company has stated its aim to develop best-in-class Operations to support the triple aim of
maintaining permanently competitive operating costs, providing excellence in customer satisfaction and
defending and promoting quality.
Non-core businesses, divestments and portfolio management
As part of its strategy of focusing on mobile broadband, Nokia Siemens Networks has embarked on a
number of divestments of businesses not consistent with the new company direction. As of
December 31, 2012, seven divestments had been announced and five of these deals were closed in
the course of the year. The divestments concluded during 2012 were:
• A deal to transfer the microwave transport business, including its associated operational
support systems and related support functions, to Dragonwave Inc.
• The sale of former Motorola Solutions’ WiMAX business to NewNet Communications
Technologies
• The divestment of fixed line broadband access business and associated professional services
and network management solutions to Adtran
• The sale of Belgacom-related IPTV assets to Belgacom and other IPTV assets to Accenture
• A deal to transfer the Nokia Siemens Networks’ proprietary broadband business, Expedience,
to CN Tetragen
Towards the end of 2012, Nokia Siemens Networks announced its intention to divest its Optical
Networks business to Marlin Equity Partners and its Business Support Systems operations to
Redknee. These deals, which are not yet completed, are both expected to close in the first half of
2013.
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