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Welcome to SymbianOne... est. 2003 as one of the first Symbian-centric mobile Developer portals, we now provide our readers with the latest mobile technology news, tips, developer resources and items of interest to developers, system integrators, carrier reps, handset makers, mobile industry architects, wireless technology professionals and mobile enthusiasts. We cover the iOS, Android, Windows Phone, OpenSource, and BlackBerry ecosystems

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Ovum comments: Nokia Siemens Networks sells optical networking business Print E-mail
Written by Ovum   
Monday, 03 December 2012
Nokia Siemens Networks (NSN) is selling its optical networking business unit to private investment firm Marlin Equity Partners. Dana Cooperson, leader of Ovum’s Network Infrastructure Telecoms practice provides the following view:

“When Nokia Siemens Networks announced its updated strategy about a year ago it said it was focusing its business on mobile broadband but needed to keep its optical group as a complement. This struck Ovum as odd: its strongest position in optical (it’s ranked 10th globally in the $14.9B market with just under $500M annual sales) is in the network core, where there is little connection with MBB. Furthermore, NSN’s optical business has been slipping for years with no clear plan to improve; it has not done the kind of fundamental R&D that its main competitors (e.g., Alcatel-Lucent, Ciena, Cisco Systems, Huawei Technologies) are doing.

“The details of the transaction were not released, so it is difficult to gauge Marlin’s commitment to turning the optical business around. Competition in the market is keen; margins are under constant pressure. Competitors will take advantage of this ownership change and related confusion to gain any advantage in NSN’s accounts. Marlin’s goal may be to sell the optical business to another vendor, for example Juniper Networks.

“Ovum’s 2020 research points to market evolution to a structure comprising two kinds of vendors: Full-service vendors that provide a wide range of products and services to customer partners; and specialist vendors. Three years ago Nokia Siemens Networks looked like one of the 5-7 possible full-service contenders, but it since became obvious that specialism was their strongest course; as few as 3 vendors will make the leap to full-service.”

ABOUT OVUM

Jointly awarded IIAR Global Analyst of the Year 2012, Ovum provides clients with independent and objective analysis that enables them to make better business and technology decisions. Its research draws upon over 400,000 interviews each year with business and technology, telecoms and sourcing decision-makers, giving Ovum and its clients unparalleled insight, not only into business requirements but also the technology that organizations must support. Ovum is an Informa business

 

 


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