NewNet aims to be a player in the WiMAX space

Infrastructure vendor Nokia Siemens Networks said Tuesday that it is selling off the WiMAX equipment portfolio acquired from Motorola Solutions as part of a wider deal earlier this year. The division will be sold to messaging and infrastructure player NewNet Communication Technologies for an undisclosed sum, along with around 300 employees, as well as active customer and supplier contracts.

NSN picked up the unit as part of its $975m purchase of Motorola’s network infrastructure assets in May. The company is currently cutting back on non-core activities and recently announced plans to reduce its headcount by 17,000 employees. NSN acquired 6900 ex-Motorola employees as part of its May deal.

The company said that the job cuts are part of a move to target end-to-end mobile network infrastructure and services, with a particular emphasis on mobile broadband. This will likely see the firm exit the fixed landline market.

The firm plans to reduce operating expenses and production overheads by €1bn by the end of 2013, compared with the end of 2011. These savings would come largely from streamlining its workforce, the company said, but it will also target savings in areas such as real estate, IT, product and service procurement costs and administrative expenses. It is also looking for a significant reduction of suppliers in order to further lower costs and improve quality.

NSN also plans to scrap its matrix organisational structure in favour of a simpler structure. It will consolidate some of its physical sites, transfer activities to global delivery centres, consolidate certain central functions and derive cost synergies from the integration of Motorola’s wireless assets, as well. However, NSN’s investment in mobile broadband research and development will increase over the coming years.

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