Looks like WiMAX (News - Alert) is about to get the axe from Nokia Siemens, as the telecommunications services enabler has announced it will relegate the former Motorola Solutions’ WiMAX product portfolio to private equity firm NewNet (News - Alert) Communication Technologies.
Under the terms of the acquisition, which is expected to close Dec. 31, 2011, the complete WiMAX business, a total of 300 Nokia Siemens (News 
- Alert) Networks employees located mainly in suburban Chicago and Hangzhou, China, as well as active customers and supplier contracts, will be transferred to NewNet.
A provider of solutions for next-generation mobile and fixed line networks, NewNet, in an announcement from the company, said it plans on leveraging the newly acquired WiMAX product portfolio to deliver to the WiMAX marketplace a versatile set of business models.
This news comes shortly after Nokia (News - Alert) Siemens revealed that it intends to focus exclusively on the mobile broadband market and will discard disparate businesses, as reported by FierceWireless.com. In addition, the Finland-based company also announced last week that its workforce would undergo a major restructuring that would trim 17,000 jobs, or 23 percent of staff, in order to save a total cost of $1.34 billion.
“The addition of the WiMAX business would enhance the breadth of NewNet’s product portfolio, R&D capabilities, customer relationships and our overall market position in providing wireless infrastructure solutions to carriers on a global basis. We are thrilled at the prospect of welcoming a world-class group of WiMAX pioneers and thought leaders to the NewNet team,” said Ron Pyles, president and CEO of NewNet, as shared with TMCnet. “NewNet recognizes there is enormous potential in providing outstanding products, support and services to operators who have already invested heavily in WiMAX technologies as well as those who will do so in the future. We are committed to serving the market with an industry leading roadmap and innovative product migration options.”
Next to its WiMAX portfolio, Nokia Siemens also plans to put other areas on “maintenance mode,” including fixed-line VoIP, broadband access, narrowband, carrier Ethernet, business support systems, and communications and entertainment products.
“We believe that our current WiMAX customers would receive the highest quality products, services and sales support from NewNet,” said Marc Rouanne, head of Network Systems, Nokia Siemens Networks (News - Alert). “This transaction would also provide an excellent opportunity for our WiMAX employees. We have great confidence in NewNet’s plans to become a major WiMAX infrastructure provider. The company has a solid track record in acquiring telecommunication businesses and driving revenue growth.”
In April, the Netherlands-based communications services company acquired the wireless network infrastructure assets of Motorola, Inc. for $975 million in cash. However, even after the Nokia Siemens-Motorola Solutions deal closed in April, Nokia Siemens has run into a bit of trouble attracting new investors, perhaps sparking its more recent entrance into the devices market with the launch of three new 4G devices – a USB dongle, and two wireless router models for new TD-LTE network technology.
Tammy Wolf is a TMCnet web editor. She covers a wide range of topics, including IP communications and information technology. To read more of her articles, please visit her columnist page.
Edited by Carrie Schmelkin
