All our childhood memories were erased from our memory many years ago by Nokia when they sold their mobile business many years ago and now it seems that the Finnish company is once again in “deep water”. Nokia’s mobile networks business is no longer as profitable as it was four years ago, when chief executive Pekka Lundmark took over in a bid to turn it around.
A new Bloomberg report describes how Nokia now has a few options to save its mobile network business, and one of them is to simply get rid of it forever. The Finnish company has reportedly held discussions with advisers about different scenarios and is considering various solutions such as selling part or all of the business, merging with a competitor or spinning off the business entirely.
Many market players expressed from the very first minute their willingness to acquire the assets of Nokia’s mobile networks. One of these players is Samsung, which wants to gain a firm foothold in the telecommunications infrastructure. A Nokia representative made a statement to Bloomberg and talked about the state of its mobile networks.
The business has made significant progress this year in both right-sizing its cost base while protecting our product roadmap and winning new deals with new customers and growing share with existing customers. Nokia is focused on ensuring that Mobile Networks is able to serve its customers by building the best performing networks, investing in its portfolio and creating value for Nokia shareholders.
Nokia’s mobile network assets are valued at approx 10 billion dollarswhich is a very small amount for a giant like Samsung. However, at this time, a Samsung representative declined to comment, which makes sense given that Nokia has yet to make any decisions regarding its mobile network operations.
Although Nokia has had some success in rolling out 5G infrastructure for many carriers, demand from network operators has fallen off lately, so we understand how difficult the whole situation is!
Source: myphone.gr
