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.

Mozambican mobile cellcos Moçambique Celular (Mcel) and Vodacom have both been granted 3G licences, according to local media reports.

Under the terms of the concessions, the operators will be required to expand their 3G networks to all districts of the country by December 31, 2015, including the country’s development corridors and tourist resorts as well as improving the network in strategic locations.

The licences issued by INCM will allow both Mcel and Vodacom to provide mobile telecommunications services for public use, in the band frequencies of 1900MHz and 2100MHz, according to the 3G (UMTS) standard, as approved by the European Telecommunications Standard Institute," commented INCM chairman, Isidoro da Silva.

Vodafone Group published its six-monthly financial results for the period end September 30, announcing group revenues rose by 4.1 per cent to reach £23.52 billion (US$37.7 billion), while net profit fell by 11.5 per cent to £6.64 billion.

The drop in profits was due to higher sales costs, a bigger tax bill and a sharp fall in investment income. The company paid £1.4 billion in tax on its profits.

Group EBITDA was up 2.3 per cent to £7.5 billion, slightly higher than expectations. The EBITDA margin was down 0.6 percentage points year-on-year, as expected. The fall in the margin was primarily driven by the company’s re-pricing in Spain and poor performance in Australia, partially offset by good cost control, Vodafone stated.

Mobile data revenue was up 23.8 per cent year-on-year to £3.1 billion, and now represents 14 per cent of group service revenue.

Looking ahead, the Vodafone expects adjusted operating profit for the full year to be in the range of £11.4 – £11.8 billion, the upper half of the range indicated in May 2011. The company continues to expect free cash flow to be in the range of £6.0 – £6.5 billion, excluding the £2.8 billion dividend due from Verizon Wireless in January 2012.