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Tuesday, 04 December 2012 11:20

Nokia Siemens to close service unit

Written by Nick Farrell



Lost a big contract


A service unit of Nokia Siemens Networks is likely to be closed after losing a contract with its biggest customer.

According to the German daily newspaper Sueddeutsche Zeitung workers at NSN Services would be told in a meeting on Wednesday that Deutsche Telekom has cancelled its contract with the Nuremberg-based company effective at the end of the month.

Talks for a new contract have failed and without Deutsche Telekom cash the company will have to shut down at the end of 2013, affecting 1,000 jobs, it said. NSN is a joint venture between Nokia Oyj and Siemens and is currently selling off every business which is not absolutely necessary. It has fired a quarter of its staff and selling product lines to focus on mobile broadband. 

On Monday, it said it was selling its optical fibre unit to Marlin Equity Partners, resulting in the transfer of up to 1,900 employees, mainly in Germany and Portugal.

Nick Farrell

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