Nokia Siemens jettisons optical network business

Nokia Siemens Networks has agreed to sell off its optical networking business in what the company said was an effort to focus on the mobile broadband space.

Under the deal, the company will sell its Optical Networks branch to investment firm Marlin Equity Partners. Terms of the deal were not disclosed.

Nokia Siemens said that the sell-off was part of an effort to focus its resources on the mobile broadband market. The company has been in the process of a corporate shakeup which has included cutting 17,000 jobs.

"During 2012 Nokia Siemens Networks has made tremendous progress in the transformation of our company to being the world’s mobile broadband specialist," said Nokia Siemens chief executive Rajeev Suri.

"Our strategic focus on our core markets has enabled us to concentrate our energy and investment in areas such as LTE where we have strengthened our global leadership position."

Optical Networks, meanwhile, will continue to operate and will be spun off as an independent company with headquarters in Munich.

Ovum network infrastructure telecoms analyst Dana Cooperson said that stiff competition in the optical space could cloud the long-term outlook for the new firm.

"Competitors will take advantage of this ownership change and related confusion to gain any advantage in Nokia Siemens Network’s accounts," Cooperson explained.

"Marlin's goal may be to sell the optical business to another vendor, for example Juniper Networks."