NewNet Communication Technologies, a Skyview Capital portfolio company, announced today that it plans to acquire the former Motorola Solutions’ WiMAX business from Nokia Siemens Networks (NSN). Under the terms of the agreement, NewNet would acquire the complete WiMAX product portfolio, the related employees and assets, as well as active customer and supplier contracts. Approximately 300 NSN employees would transfer to NewNet. The companies expect to close before December 31, 2011.

As a part of the transaction the companies expect to transition approximately 300 globally deployed NSN employees to NewNet. Many of these employees are based in Chicago and Hangzhou, China.

Specific terms of the transaction were not disclosed.

The number of mobile subscriptions in the Middle East will cross the 250-million mark during 2012, reaching 271.27 million at end-2012 and rising to 352 million at end-2016, according to forecasts by Informa Telecoms & Media.

Additionally, the average mobile penetration rate for the Middle East will cross the 100 per cent mark in 2012: It will rise from 97.72 per cent at end-2011 to 107.09 per cent at end-2012, exceeding the mobile penetration rate in North America (US/Canada) for the first time. (The mobile penetration rate in North America at end-2012 will be 102.77 per cent.

Iran will continue to be the biggest mobile market in the Middle East by subscriptions with 82.91 million subscriptions forecast for end-2011, rising to 122.13 million at end-2016.

Saudi Arabia has the next biggest mobile market in the region by subscriptions, with a 50.8 million active mobile subscriptions forecast for end-2011, rising to 71.32 million at end-2016.

Despite the take-up of smartphones and, to a lesser degree, mobile broadband in some parts of the Middle East, data services only account for a relatively small proportion of mobile revenues in the region overall. Data accounted for 13 per cent of mobile revenues in the Middle East in Q211; the lowest percentage for any major world region other than Africa.

Nokia Siemens Networks (NSN) today announced its strategy to focus on mobile broadband and services and the launch of an extensive global restructuring programme.

NSN plans to reduce its global workforce, which stood at 74,000 on November 1, 2011 by approximately 17,000 or 23 per cent by the end of 2013. These planned reductions are expected to be driven by aligning the company’s workforce with its new strategy as well as through a range of productivity and efficiency measures. These planned measures are expected to include elimination of the company’s matrix organisational structure, site consolidation, transfer of activities to global delivery centres, consolidation of certain central functions, cost synergies from the integration of Motorola’s wireless assets, efficiencies in service operations, and company-wide process simplification.

The company said it would begin the process of engaging with employee representatives in accordance with country-specific legal requirements to find socially responsible means to address these reduction needs.

The infrastructure vendor also said it would target end-to-end mobile network infrastructure and services, with a particular emphasis on mobile broadband.

NSN plans to realign its business to focus on mobile broadband (including optical), customer experience management and services. The company’s Services organisation will further strengthen its highly-efficient global delivery system. Business areas not consistent with the new strategy are planned to be divested or managed for value. Quality and innovation will continue to be priorities for the company, with on-going investment in both areas.

The company is targeting to reduce its annualised operating expenses and production overheads by €1 billion (US$1.33 billion) by the end of 2013, compared to the end of 2011. While these savings are expected to come largely from organisational streamlining, the company will also target areas such as real estate, information technology, product and service procurement costs, overall general and administrative expenses, and a significant reduction of suppliers in order to further lower costs and improve quality.

“We believe that the future of our industry is in mobile broadband and services – and we aim to be an undisputed leader in these areas,” said Rajeev Suri, CEO of NSN. “At the same time, we need to take the necessary steps to maintain long term competitiveness and improve profitability in a challenging telecommunications market.”

Zain Iraq has signed a US$650 million five-year network outsourcing agreement with Ericsson, the world’s leading provider of telecommunications technology and services and its local partner SIM (Service in Motion). Under the agreement, Ericsson will optimise, modernise and manage IT operations and Zain’s mobile network in Iraq that currently includes more than 3,700 sites across the country. The agreement also extends to the northern region of Kurdistan where Zain has recently launched commercial.

Zain served over 12.4 million active customers in Iraq as of September 30, 2011. The deal with Ericsson will enable the cellco to increase its focus on its core customer facing business activities such as managing its customer relationships and offer a shorter time-to-market for the introduction of new services and technologies. The arrangement with Ericsson has the objective of improving network efficiency, reducing operating costs and optimising Zain’s investment in Iraq.

Zain and Ericsson executives at the signing of the outsourcing agreement

The deal also gives Ericsson its first major managed services agreement in Iraq, reflecting the increased attention of both companies on the growing Iraqi market.

Preparing for the future, Ericsson will replace and upgrade Zain’s network by introducing a single-RAN (Radio Access Network) platform, the latest advanced multi-technology, multi-standard and multi-band platform. This more advanced technology combined with Ericsson’s managed services offering built on improved quality of service and operational efficiency is a step towards giving Zain in Iraq the ability to launch and support 3G technology, and improve its customer experience.

Huawei and Symantec Corp. announced an agreement on a transaction where Huawei will acquire Symantec’s 49 per cent stake in Huawei Symantec Technologies Co., Ltd. for US$530 million. Upon closing, the agreement will give Huawei full ownership of Huawei Symantec.

Huawei Symantec is a Hong Kong-based joint venture established by Huawei and Symantec in 2008. The company provides customers with security, storage and systems management solutions. Over the past few months, Huawei and Symantec have held several rounds of discussions and negotiations over the future of the joint venture. Huawei and Symantec have mutually agreed that the next stage of growth for the joint venture would benefit from the direction of a single owner.

The agreement is subject to regulatory approvals and other customary closing conditions and is expected to close in the first quarter of 2012. Until the closing, Huawei and Symantec will continue to comply with their commitments under the existing joint venture agreements.