Telecom equipment maker Nokia Siemens Networks (NSN) has put its Business Support Systems (BSS) unit on the block.
NSN was a company that was created out of Nokia’s network business group and Siemens making networking equipment for telecom companies. According to Nokia Siemens Networks CEO Rajeev Suri the company is set to shelve some of its product lines and focus on mobile broadband equipment.
Meanwhile, company sources said all non-core assets will be sold off and BSS has been identified as one of them.
BSS are implemented by telcos to deal with billing-related services for customers. Nokia Siemens has struggled for profitability since it came into existence in 2007 due to a sluggish telecom market. Competition from Chinese companies such as Huawei and parent Nokia’s troubles have affected NSN in the last couple of years, according to industry watchers.
“We have divested six of our businesses that are either not core to our mobile broadband or we see that the profitability is not where we want it to be,” said Suri.
Restructuring exercise
The company has sold off its network equipment for wired networks and exited WiMax, a wireless technology.
In a restructuring exercise, the company said in last November that it plans to lay off 25 per cent of its workforce or 17,000 employees globally. When asked about its impact on India, Suri said that while the telecom market will be flat in the foreseeable future, its cost-cutting initiatives have been positive and the company is doing more work such as remotely managing base stations for Verizon from Bangalore.
However, the company declined to reveal its hiring or additional manufacturing investment plans. According to NSN officials, the company’s Chennai plant manufactures and exports 2G and 3G equipment for more than 30 per cent of its global exporting needs.