Nokia Solutions End Networks Nokia Networks in Russia

Performance indicators

2023: Nokia compensates Russian subsidiary billions for recycled equipment and fines under terminated contracts

As discovered by TAdviser, Nokia Solutions End Networks LLC, a Russian subsidiary of Finnish Nokia Solutions and Networks, in 2023 received large compensation from one of the related parties amid the curtailment of activities in Russia. This follows from the explanations for the financial accounting of Nokia Solutions End Networks, published in the database of the Federal Tax Service in early April 2024.

In particular, Nokia Solutions End Networks received compensation from the related party for fines under termination agreements in the amount of about 1.76 billion rubles. Compensation for the disposal of equipment amounted to about 1.58 billion rubles.

In addition, in 2023, Nokia Solutions End Networks had income arising from the forgiveness of debt by a related party in the amount of about 705 million rubles.

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Nokia

In April 2022, the parent company Nokia, we recall, announced a decision to leave the Russian market. To ensure the support of its customers under the current sanctions regime, Nokia applied for the appropriate licenses to fulfill its obligations under the existing contracts, however, one of the necessary licenses was not received, according to the explanations for the financial reporting of Nokia Solutions End Networks.

As a result, in 2022 there were significant changes in the activities of Nokia Solutions End Networks, in its organizational structure and business structure, which were completed in 2023. In particular, there was a significant reduction in the company's activities associated with the completion of the main projects for the sale of goods and the provision of services, a significant reduction in the import and export of equipment.

Nokia Solutions End Networks terminated the current contracts and entered into settlement agreements with customers and terminated contracts with suppliers, which, accordingly, were concluded to fulfill the contract with end customers.

Also in 2023, significant staff reductions were carried out and the branches of Nokia Solutions End Networks were closed. At the end of 2023, the only employee is the CEO, while a year earlier the company still had 479 people. The reporting and document management activities of Nokia Solutions End Networks are supported by external contractors on the basis of concluded contracts.

In connection with these circumstances, Nokia Solutions End Networks indicates the likely termination of operations in the foreseeable future.

In addition to Nokia Solutions End Networks LLC, Nokia also has Nokia Solutions End Networks JSC in Russia. Both of these legal entities, according to the Federal Tax Service, have been in the process of reorganization in the form of joining another legal entity since 2023. In addition, Finnish Nokia Solutions and Networks owns a 49% stake in the authorized capital of RTK-Network Technologies, a joint venture with Rostelecom.

History

2024: Rostelecom buys out 49% stake in joint venture with Nokia

Russian President Vladimir Putin at the end of May 2024 approved the buyout by Rostelecom of a 49% stake in the Finnish company Nokia in the joint venture RTK - Network Technologies - a company that specializes in the production of network equipment and software. Read more here.

2022: Reduction of combined revenue in Russia by 60.2% to RUB 10,118 mln

At the end of 2022, the combined revenue of the Finnish company Nokia Networks in Russia decreased by 60.2% - 10,118 million rubles. The indicator includes the revenues of JSC NOKIA SOLUSHNZ END NETWORKS and LLC NOKIA SOLUSHNZ END NETWORKS from the financial statements for 2021-2022, excluding VAT. In ranking "TAdviser100: The largest IT companies in Russia 2023" such an indicator allowed the company to take 53rd place.

2021: Decrease in revenue in Russia by 3.3% to 25,393 million rubles

At the end of 2021, Nokia Networks revenue in Russia amounted to 25,393 million rubles, down 3.3% compared to 2020, which allowed it to take 25th place in the ranking of TAdviser100: The largest IT companies in Russia 2022. The total revenues of JSC NOKIA SOLUSHNZ END NETWORKS and LLC NOKIA SOLUSHNZ END NETWORKS from the accounting statements for 2020-2021 were taken into account. Excluding VAT.

2020: Revenue in Russia - 26,254 million rubles

At the end of 2020, Nokia Networks revenue in Russia amounted to 26,254 million rubles.

2019: Revenue growth by 41% to RUB 19.2 billion

At the end of 2019, Nokia Networks took 6th place in the TAdviser Ranking: the 50 most profitable representative offices of foreign IT companies in Russia. The Nokia Networks indicator in Russia includes the revenue of legal entities LLC Nokia Solutions End Networks, JSC Nokia Solutions End Networks. The company's revenue for 2019 amounted to 19,246,641 thousand rubles, which is 41% higher than in 2018.

2018: Revenue - RUB 13.6 billion

The revenue Nokia of Networks in (Russia LLC Nokia Solutions End Networks, JSC Nokia Solutions End Networks) for 2018 amounted to 13,637,090 thousand rubles.

2017: "Nokia University" opens its doors to MTUSI students

Nokia University is open on the basis of a specialized higher educational institution. The project provides for free education for senior undergraduate and graduate students. The project participants are students of the Moscow Technical University of Communications and Informatics (MTUSI).

For admission to Nokia University, students underwent preliminary testing in order to assess the level of technical knowledge. The course of study will last 2 semesters, from October 2017 to April 2018, upon graduation, students will receive appropriate certificates.

During training, students will have the opportunity to master new IP/MPLS, Carrier Ethernet, VoIP, LTE, Clouds Solutions (NFV, SDN) technologies and gain practical experience in setting up and operating telecommunications equipment. In addition to technical workshops, the curriculum includes training on time management, project management fundamentals, creating effective presentations, and negotiating skills.

The university program is implemented in cooperation with the Nokia Training Center. Technical seminars for students will be conducted by teachers of the Training Center, and Nokia employees who voluntarily took the initiative to participate in the project will conduct trainings on the development of business skills.

Direct communication with experts and specialists of the company within the framework of the Nokia University curriculum will allow MTUSI students to gain experience and skills that will help them take a step from theoretical knowledge to practical work in their future professional life.

2016

Launch of the Global Service Delivery Center in Voronezh

On October 18, 2016, Nokia announced the opening of the Global Delivery Center (GDC) in Voronezh. The company announced a 300 million investment in its creation.

The center Voronezh was established in September 2011 as the Global Network Operations Center (GNOC). The upgraded site will have more functionality and will be able to offer an expanded range of services designed to help operators maximize the benefits of centralizing network operations and economies of scale.

The Global Service Delivery Center will offer its customers the expertise to improve speed, efficiency, and quality of work and, as a result, ensure the best possible end-user experience. The center has one of the key roles in this, as it is designed to operate multi-tender networks and offers an expanded range of services, including planning, optimization, service support and support services.

Nokia was a pioneer in the Russian market - it was we who signed the first contract for the provision of managed services and opened the first global network operation center in Russia. To date, our experience in the Russian market, in particular, in the field of network management of operators, has been going on for more than five years. This experience helps us better understand the challenges customers face and their expectations. With the opening of the updated service center, operators will be able to take advantage of a high level of automation and standardization, as well as the use of optimal international methods throughout the network life cycle. The new platform will be an excellent basis for future cooperation with operators. Amit Dhingra, Vice President, Global Service Delivery at Nokia

The center is located in Voronezh, part of the global service delivery division, which includes global service delivery centers To Europe in and, India as well as network management centers in a number of other countries. The centers function as a single mechanism, which allows you to optimally allocate resources and exchange the best practical experience in the field of planning, integration, operation and maintenance of operator networks. Centers remotely manage more than 565 thousand access nodes and annually perform about 1 million update/modernization operations, software process about 4 million service requests.

New CEO in Russia

In August 2016, Nokia announced the appointment of Mikhail Rayskin as CEO of the company in Russia. Details of his appointment and biography - in a separate article:

• Mikhail Rayskin

2011

Launch of production of base stations at JV with Mikran

On December 1, 2011, the research and Nokia Siemens Networks production company "" and Micron"" Rusnano opened a joint production of base stations of the Long Term Evolution () standard LTE ^[1]

Located in the special economic zone Tomsk, the joint venture Center for Wireless Technologies has released the first base station Flexi Multiradio 10 from Nokia Siemens Networks and by the end of December 2011 plans to manufacture a batch of 1,000 pieces of equipment. The Flexi Multiradio 10 station simultaneously supports GSM/EDGE, WCDMA/HSPA +, LTE/LTE-Advanced and offers over 10 Gbit/s capacity while consuming 30% less power compared to the previous generation Flexi Base Station (about 1 kW for all 3GPP communication standards).

"We have brought technological know-how to the country, which will help develop in Russia our own personnel potential for the production of modern LTE equipment, and will also become one of the components in the transition to an innovative economy," said Kristina Tikhonova, CEO of Nokia Siemens Networks in Russia. - Russia is an important market for Nokia Siemens Networks. By placing production facilities here, we will be able to become closer to Russian operators, simplifying logistics and reducing the delivery time of base stations for the rapid deployment of networks. "

By December 2011, Nokia Siemens Networks had created a base for research and development work in Russia and opened a global network operation center in Voronezh, which will provide Russian operators with service in the field of managed services, the report said.

"At the moment, no more than ten companies in the world can produce equipment with support for fourth-generation LTE technology. And now production in the special economic zone "Tomsk" is among them. This is an important step towards building a modern telecommunications infrastructure and innovative economy. And on the scale of not only the region, but the whole country, "said Oleg Kostin, General Director of the Special Economic Zones management company

At the ceremony dedicated to the launch of the plant on December 1, 2011, an HD video call was demonstrated, which was performed using the Flexi Multiradio station released at the plant in Tomsk. To provide phase synchronization of the base station, the signal of the Russian satellite system GLONASS was also used for the first time.

Agreement with NPF Mikran on the distribution of shares in the joint venture

On September 20, 2011, it became known that Nokia Siemens Networks (NSN) and NPF "" Micron signed an agreement on the distribution of shares in the newly created joint venture Wireless Technology Center"," which will produce 4G base stations (BS) LTE for Russian operators. Production should be located in the Special Economic Zone of the technical and implementation type in Tomsk. The agreement of intent for the production of LTE base stations of the company was announced in March 2011.

Under the shareholder agreement, the NSN group (NSN B.V. and the Russian division of NSN) will have a 75% stake in the joint venture at the first stage, and Mikran will withdraw 25% of the shares. At the second stage, presumably at the end of 2011, another 25% of the shares of the joint venture as a result of the sale will go to Rusnano. Investments in the project were not disclosed. The launch of production is scheduled for the 4th quarter of 2011.

The agreement also provides for the transfer by Nokia Siemens Networks of the knowledge necessary to organize serial production with production volumes that allow meeting the needs of the Russian telecommunications market. Mikran specialists will use NSN technologies, know-how and equipment to produce base stations for 4G LTE networks, including system modules, radio modules and nodes for LTE networks.

Earlier it was reported that the volume of production at the new joint venture could reach 10 thousand. LTE BS per year, subject to the presence of demand for such products. It is planned that the payback of the new project will be three years. The possibility of exporting products to the world market is not excluded. Thus, NSN becomes one of the main contenders for the status of a Russian manufacturer of telecommunications equipment. Innovative NSN technologies will speed up the production of equipment for 4G networks in Russia.

Investment in Network Operations Center

In May 2011, it became known that Nokia Siemens Networks is investing in the construction of a global network operation center Russia of tens of millions. dollars This was stated in an interview with RT by the CEO of Nokia Siemens Networks (NSN) in Russia. Mikhail Chupa

"We are going to build a global network operation center, which will be located here in Russia, but will serve not only Russians, but also customers in other countries," said Mikhail Chupa, commenting on business development plans in Russia. "We intend to invest tens of millions of dollars in this Russian network operation center." "There are other investment projects that consist in the transfer of know-how, cooperation with our local partners," he said. "We really like the Russian market, since it is very aimed at innovation," said NSN CEO in Russia

2010: Plans to launch the first outsourcing centre in Russia

On September 15, 2010 Nokia Siemens , Networks announced plans to launch the first outsourcing center in. Russia Work on the creation of the center will begin in the IV quarter of 2010, and in the II quarter of 2011 it should begin providing services for servicing operator networks in Russia and the CIS. Nokia Siemens Networks does not disclose investments in this project, but, according to the manager of the rival company, they could amount to $5-10 million.

The first contract for outsourcing networks in Russia Nokia Siemens Networks has already concluded - in August 2010^[2]. MTS transferred it to the management of mobile networks in 16 regions of the Central Federal District to reduce costs. Simultaneously with the conclusion of this contract, 250 employees of the operator transferred to the staff of Nokia Siemens Networks. If the experiment turns out to be successful, in a year MTS may extend it to other regions of Russia, says MTS representative Irina Osadchaya.

Nokia Siemens Networks is in talks to outsource network management with all major operators, said Alexander Myasoyedov, sales director of the Russian office of Nokia Siemens Networks. A source close to one of the cellular companies claimed that in addition to MTS, negotiations are also underway with its competitors - VimpelCom and Megafon.

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