Siemens is likely to exit the Nokia Siemens Networks (NSN) joint venture this year, a senior executive from the German company has said.
Dow Jones Newswires reports that Siemens CEO Joe Kaeser said this week the company plans to leave the joint venture with Nokia and that 2013 “is the time for Siemens to help NSN to move into a better place”.
The shareholder pact for NSN expires in April, which would allow both companies to dispose of their stakes. However, Kaeser said the venture will remain for the time being.
Siemens has been divesting its telecoms assets in the JV over the past few years, according to the report.
In November 2011 telecoms network vendor NSN announced a major revamp (focusing on the mobile broadband space), planning to cut a total of 17,000 jobs and make $1 billion in cost savings by the end of 2013. CEO Rajeev Suri said the drastic action was “to improve our profitability and cash generation.”
NSN has posted losses since it was founded in 2007, but Kaeser said the restructuring measures have succeeded in making the company profitable.
NSN has already sold its WiMax unit to NewNet Communication Technologies, its Expedience proprietary fixed wireless broadband business to CN Tetragen, its fixed line broadband access unit to Adtran and microwave transport business to DragonWave. It sold its Business Support Systems unit to Canadian billing and charging specialists Redknee in December.