In recent news, Nokia Networks is facing challenges in maintaining the profitability of its mobile network business under the leadership of Pekka Lundmark. Given the current state of affairs, Nokia is exploring various options to salvage its mobile network business, which may involve divesting the segment altogether.
A report by Bloomberg indicates that Nokia has been in discussions with advisors to consider different scenarios, such as selling a portion or all of its mobile network business, as well as the potential for mergers with competitors or full separation of the business segment. While no final decisions have been reached, several companies have expressed interest in acquiring Nokia’s mobile network assets, with Samsung being one of the interested parties seeking to bolster its presence in the telecommunications infrastructure sector.
Preliminary estimates value Nokia Networks assets at approximately $10 billion, an amount that may be relatively modest for a company of Samsung’s scale. However, it’s important to note that Nokia has not yet reached a decision regarding the future of its mobile network business, and Samsung has refrained from commenting on the matter at this time.
In response to inquiries from Bloomberg, a spokesperson from Nokia refrained from providing extensive details about the mobile network business, but did point out the division’s recent achievements including securing new contracts and expanding its market share with existing customers. Additionally, the spokesperson emphasized Nokia’s commitment to ensuring that its Mobile Networks division is well-positioned to serve its customers, focusing on building high-performance networks, portfolio investments, and delivering value to shareholders.
While Nokia has made strides in deploying 5G infrastructure for numerous carriers, recent declines in carrier demand have highlighted the need for both reviving the profitability of its mobile network business and exploring new business opportunities that are less reliant on network infrastructure development for operators.
