Nokia Siemens Networks announced this week that it's combining its Africa and the Middle East business operations and absorbed them into the company's Asia division, a move that "should further boost NSN's prospects for solid regional growth in 2013."
So says Ken Rehbehn, principal analyst for Yankee Group, who says NSN's realignment doesn't come as a surprise – and he expects it to be a good move for the infrastructure provider.
"For years, multinational vendors tended to look at regional divisions through a longitude prism by organizing in rough time zone structures: the Americas, Europe, Middle East and Africa (EMEA) and Asia Pacific (APAC). But these divisions, while convenient for meeting time coordination, may not reflect common market circumstances," noted Rehbehn, commenting on a Total Telecom report. "NSN defined three types of markets to guide its go-to-market strategy around the globe, each with a different priority and strategy. To that end, NSN classifies Europe as a market in renewal while Africa, the Middle East and most of Asia are considered ‘defend and grow’ markets."
Nokia Siemens expects the consolidation will help it better serve global operators. The company plans to provide integrated service to its African and Middle Eastern clients, as well as those based elsewhere but have operations in the two regions. Many clients have expressed interest in for advanced LTE technologies, the report said.
"By adopting the new regional structure, NSN’s sales force is organized into more focused units attacking with a unified strategy," Rehbehn said. "The company made remarkable progress in Africa and the Middle East in 2012." The changes open the door for more growth this year, he noted.
Nokia Siemens has been busy lately, selling off parts of its business – it's optical biz and its BSS unit in December, for instance – and closing its services unit to focus more heavily on its mobile broadband strategy.
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