India was a standout performer: Nokia CEO Rajeev Suri
Nokia CEO Rajeev Suri said India was a standout performer for Nokia Networks in the first quarter of 2015.
“On a regional basis, we saw year-on-year growth in four of our six regions with particular strength in North America, Greater China and the Middle East and Africa. India in particular was a standout performer, both on the mobile broadband and global services sides,” said Suri, announcing the Q1 financial result of Nokia.
Suri also explained the need to acquire Alcatel-Lucent.
First, Nokia customers see the acquisition of Alcatel-Lucent as a way to ensure three strong global competitors and not as a reduction in competition. They see it as a way to protect their investments of the past while enabling the needed innovation in future technologies and services.
Second, several key government officials in many countries are supporting the deal. The company is also getting support from rivals.
Third, since the transaction is not structured as a joint venture and is an acquisition by Nokia with clarity in terms of leadership and governance, the deal will give Nokia to move fast to avoid politics.
“We have already appointed an integration leader and are moving fast to get detailed planning underway. We will ensure the integration planning work is separated from our day-to-day business operations in order to minimize the risk of any disruption,” Suri said.
Nokia after completing the Alcatel-Lucent deal will focus on 5G and Cloud.
“We are now in a cycle between 4G and 5G and the timing of this deal will allow us to accelerate spending on 5G immediately upon closing. In addition, the combined portfolio will put the company in an excellent position as the transition to cloud accelerates,” Suri said.
Nokia Networks revenue
Nokia Networks business mix during the quarter was 52 percent Mobile Broadband versus 48 percent for Global Services.
Nokia CEO explained the reasons for the decline in profit. Software sales fell nearly 5 percentage points – mainly due to lower core networking revenue and lower software sales in Japan and North America. Its China focus – especially strategic entry deals — also impacted profitability.