Jul 1 2013, 3:42am CDT | by Sumayah Aamir
With a lot of focus and an able leadership, Siemens is selling entire 50% of its stake to Nokia in Nokia Siemens Networks. This network is a joint venture of both Nokia and Siemens which is now fully acquired by Nokia. The Networks has tried to soup up its working order. As for the financial state, it too is being looked into. They are tops in matters of LTE. This presents a lucrative chance of growth. Nokia is glad that the progress took place. The Nokia-Siemens joint venture was begun six years ago. Over 150 countries count on the company to provide services and lend access to them in matters of telecom products. As far as the story of Nokia handsets is concerned, they are in a slump. Competition from
Apple and Samsung has hurt the business back in Finland. But the joint venture has been seeing profitable growth since a year ago. It has not been down in the dumps. The current administrative structure at Siemens will remain intact. So will the headquarters of NSN based in Espoo, Finland. Nokia had its eyes set on its German counterpart since a long time. After Nokia engulfs Siemens it will be given a different epithet. What that will be remains a mystery. The transaction was in the works and doesn’t come as much of a shock. The purchasing power of Nokia allowed it to come up with a cool $2.2 billion. Nokia will now concentrate on improving the core values of energy containment, industrial activity, infrastructure and healthcare.
Nokia has not let go of the top cats at NSN. At least the CEO, Rajeev Suri remains the same. So does Jesper Ovesen, the Executive Chairman. NSN will have a strong regional effect in Germany. There is a plan to phase out the Siemens from the Nokia Siemens Network title. Nokia is definitely in total control of the situation from now onwards. Rumors had been circulating regarding the transaction.
Nokia Siemens Network had been facing stiff competition from Huawei and ZTE. It had only in the past year or so started showing significant profits. Nokia is in a struggle for its existence. This decision was taken with that in mind. It has secured some time for Nokia to do something about its image. A wide range of options lie open before Nokia. Which ones it chooses is a decision that lies entirely in its own hands.
Image Credit: Getty Images
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