Nokia Networks to sharpen its business focus in Broadband Systems

Nokia Networks, the infrastructure arm of Nokia Corp., will sharpen its strategy and business focus in its Broadband Systems division. The division plans to concentrate its activities in two business units in order to meet future customer needs in both business segments. The business units will be Broadband Access and Narrowband Access.

The Broadband marketplace today requires the most cost-effective platforms for operators to offer services at the price levels consumers and businesses demand. This sharpened focus on Nokia Networks Broadband business is targeted to enable operators to deliver the services in a profitable manner. Broadband Access plans to announce shortly the launch of an enhanced multi-service DSLAM (Digital Subscriber Line Access Multiplexer) platform to complement today’s D 50 Fast Internet DSLAM.

Narrowband Access will continue to supply its customers with well-established and recognized narrowband access solutions.

“The broadband market has lately experienced changes, especially in the US, and we want to proactively develop our mode of operation to meet and exceed customer expectations and to adapt to the new market conditions and increased competition. Hence we will sharpen our strategies and exploit the synergies of different Nokia units and technology platforms. The organization is further developed to better meet the current market environment,” said Olli Oittinen, Senior Vice President, Nokia Networks, Broadband Systems, “The planned measures will create a first class organization capable of tackling the challenging market situation and improving our financial performance. We will continue to build the business on this lean, fast-acting core”.

Nokia Networks’ Broadband Systems also seeks to streamline its R&D network. The division's aim is to maximize the synergies enabled by Nokia’s technology platform development in the Intelligent Edge network area. This will further strengthen resources in the division’s key R&D projects. In addition, the division is planning to optimize its R&D chain, which currently consists of nine sites. Due to the intensifying industry competition it will pay additional attention to the structure of its R&D forces and projects. The division has re-evaluated the R&D site strategy and plans to concentrate on fewer, but strong sites, which have the capacity to assume more comprehensive independent program assignments.

Nokia Networks Broadband Systems is also planning to introduce a new mode of operations, which is estimated to decrease the number of its personnel in non-core functions and increase efficiency. It is expected that the reduction of personnel will be approximately 300 to 400 due to the new mode of operations. Nokia aims to assist such employees in seeking new jobs within or outside Nokia.

The new organization is expected to come in effect in the second quarter of 2001.

Broadband Systems, a division of Nokia Networks, is a leading supplier of Broadband Access and Narrowband Access products. Broadband Systems provides cost-effective, innovative and highly-reliable broadband and narrowband solutions to network and service providers serving both business and residential markets.

Nokia is the world leader in mobile communications. Backed by its experience, innovation, user-friendliness and secure solutions, the company has become the leading supplier of mobile phones and a leading supplier of mobile, fixed and IP networks. By adding mobility to the Internet Nokia creates new opportunities for companies and further enriches the daily lives of people. Nokia is a broadly held company with listings on six major exchanges.

Further information:
Arja Suominen, VP, Communications
Nokia Networks
Tel. +358 7180 38193
E-mail: nokia.networks@nokia.com

www.nokia.com