Nokia Corp’s (NOK) wholly-owned subsidiary Nokia Solutions and Networks (“NSN”) has recently won a major contract in Russia. VimpelCom Ltd. (VIP), the third largest telecom operator in Russia, has selected NSN to provide equipment and services for its 4G LTE (Long-Term Evolution) network. However, the financial terms of the contract have not been disclosed.
Notably, Nokia has decided to divest its core mobile handset and its services division to Microsoft Corp. (MSFT). The deal is expected to close in the first quarter of 2014.
Post the divestiture, NSN will become the company’s chief business division. The other division will be HERE, which offers digital map information and related location based content and services for automotive navigation systems. Nokia currently has a Zacks Rank #2 (Buy).
Per the deal, NSN will deploy its Flexi base station and NetAct network management system for VimpelCom's access networks in central and southern Russia, Siberia, and the majority of the Ural and Volga regions.
NSN will also provide its industry leading professional services, which will include planning, optimization and implementation of network infrastructure. Currently, VimpelCom provides 58.1 million connections, lagging 73.1 million of MTS and 66.3 million of MegaFon.
In Dec 2013, NSN renewed its contract with the largest Taiwanese telecom operator, Chunghwa Telecom Co. Ltd. (CHT) to supply infrastructure for the carrier’s HSPA+ network capacity expansion. Chunghwa intends to offer LTE services from mid-2014 and has selected NSN as its major vendor.
NSN will provide its RAN (radio access network) superior technology, supported byFlexi Multiradio 10 Base Station to Chunghwa. Moreover, it will deliver circuit-switched fallback (CSFB) technology, which will support voice services for LTE smartphone users.
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