History of Nokia Corporation

• Main article about the company: Nokia

Acquisitions and divestment

Main article: Acquisitions and sale of Nokia assets

Revenue and profit dynamics

Main article: Nokia financial performance

2023: Cuts to 14,000 employees or 16% of staff due to sales collapse

In October 2023, it was announced that Nokia Oyj plans to cut up to 14,000 jobs, or 16% of its workforce, as 5G infrastructure investment from US and European operators declines.

This means a 10-15% reduction in personnel costs and is expected to save up to 400 million euros ($421 million). USA) next year and another 300 million euros in 2025, the company based in Espoo (Finland) said in a statement.

2022

Launch of $400 million venture capital fund to invest in IT companies

On February 3, 2022, Nokia announced the creation of a $400 million Fund V venture fund, which will focus on financing promising companies in the growth stage. NGP Capital became a partner of the Finnish manufacturer of telecom equipment in this project. Read more here.

Joining the International Initiative RE100

Nokia On January 17, 2022, the corporation announced its accession to RE100, an international initiative led by Climate Group in partnership with CDP and uniting the world's most influential companies with the goal of 100% use of renewable electricity. For more than 10 years, Nokia has been transmitting data about the level emissions of the international information environmental disclosure system (CDP). Cooperation with this organization allows Nokia to track the level of emissions logistic in the company's chain and compliance with climate goals. Not long ago, the corporation was given a climate rating of A.

As part of this initiative, Nokia will be able to achieve its previously stated goal: to reduce the level of emissions generated by the company's operating activities, bringing the level of renewable energy use to 100% by 2025. By joining the RE100 initiative, Nokia sets an example of a transition to the use of renewable energy in operating activities. Building on the company's role in the IT and telecommunications value chain, Nokia aims to encourage the company's suppliers and customers to take similar steps to reduce emissions by accelerating the transition to renewable electricity.

In addition, Nokia will continue to work on a 50% reduction by 2030 in all emissions within the company's value chain, including operations, production operations, logistics and manufacturing sites of suppliers responsible for final assembly. This is necessary to achieve the goal of limiting global warming to 1.5 degrees Celsius. (1.5 ° C) as defined by the International Science-Based Targets Initiative (SBTi).

We are proud to join the ranks of the RE100 initiative. This step recognizes our efforts to move to 100% renewable electricity by 2025. However, our decarbonization strategy is much broader. Together with suppliers and customers, we work to reduce emissions across the value chain. We are constantly innovating for greater energy efficiency of our technologies, contributing to the environmental sustainability of both our industry and related industries, said Melissa Schoeb, director of corporate affairs.

For January 2022, Nokia's goal is to reduce category 2 emissions, but the corporation is also working to reduce emissions in categories 1 and 3. In particular, Nokia systematically reduces emissions arising from the operation of its products in order to achieve SBTi goals. In this regard, the corporation is constantly increasing the energy efficiency of all product lines. Over the past few years, the share of renewable electricity used by Nokia has been constantly growing: in 2020 it accounted for 39% of the total energy volume, the company is confidently moving towards 45% in 2021. Nokia's goal is to accelerate this trend in order to bring the use of renewable electricity to 100% by 2025.

2021

Creation of a joint venture with Yadro for the production of telecom equipment in Russia

On November 23, 2021, Yadro and Nokia signed an agreement to localize the production of telecommunications equipment in Russia. The agreement involves the creation of a joint venture in which the shares of Yadro and Nokia will be 51% and 49%, respectively. Read more here.

Mercedes-Benz agreed to pay Nokia for 4G technologies after threatening to ban the sale of cars

In early June 2021 Daimler AG Nokia , and settled a dispute over licensing patents for wireless technology in, ending a lawsuit cars that threatened sales of machines in Mercedes. Germany The deal resolves all litigation between the companies, including Daimler's complaint against European Commission Nokia. The companies agreed not to disclose the terms of the pact in a joint statement. At the same time, it is known that the German automaker will pay the Finnish company for the use of its technologies in the field of 3G- and -connection 4G. More. here

Ericsson paid Nokia $100 million in compensation for bribes in tenders

In mid-May 2021, telecommunications equipment manufacturer Ericsson reached an agreement with the Finnish company Nokia to pay compensation in the amount of almost $100 million for the supply of products as part of tenders won through bribery of officials.

The settlement relates to events that were the subject of a 2019 United States Department of Justice (DOJ) U.S. Securities and Exchange Commission (SEC) resolution with and to investigate Ericsson's violations of the Foreign USA Corrupt Practices Act (FCPA).

Ericsson paid Nokia $100 million in compensation for the supply of products as part of tenders won through bribery of officials

As reported in 2019, the resolution with the Ministry of Justice concerns the prosecution of Ericsson for FCPA violations in five countries, including Djibouti, and the conviction of a guilty company in one case of bribery in Djibouti. The resolution with the U.S. Securities and Exchange Commission (SEC) addressed allegations of Ericsson's violations of FCPA's provisions on books and internal controls in six countries and on bribery under the FCPA in three of those six countries.

Ericsson said the settlement would affect operating profit of €80m and cash flow of €26m in the second quarter of 2021, Reuters reported.

The amount reflects uncertainty, risk, costs and possible distraction from the business related to potentially lengthy and complex litigation, the company said in a statement.

The Swedish company added that the remainder of the settlement will be paid in similar payments in 2022 and 2023 respectively, affecting cash flow. The calculation amount will be recorded as "Other Operating Expenses" in the "Developing Business Segment" section. More information on the terms of the settlement is confidential.

Ericsson, the company said, has a zero-tolerance policy on corruption and has worked hard in recent years to strengthen its ethics and compliance program and build a culture of compliance.^[1]

Nokia cuts 10,000 jobs to save €600m

In mid-March 2021, Nokia Corporation plans to cut between 5,000 and 10,000 jobs over two years, which, according to management, will make it more competitive in the 5G equipment market. The reorganization of the company will allow it to save on basic costs of 600 million euros by the end of 2023.

The upcoming job cuts will reduce the Finnish company's current workforce of about 90,000 by as much as 11%. The management said in a statement that the cost reduction will compensate for investments in research and development of new technologies, as well as cover the costs associated with indexing salaries.

Nokia plans to cut 5,000 to 10,000 jobs over two years

The total restructuring costs will amount to about 600-700 million euros, 50% of the planned spending will be in 2021, 15% - in 2022 and the remaining 35% for 2023. In the future, the company will focus on several areas: the development of wireless mobile networks and 5G, cloud services, and network infrastructure.

Nokia's share of revenue in the overall telecom equipment market fell to 15% in 2020 from 16% in 2019, while Huawei increased its lead to 31% from 28% over the same period, according to research firm Dell'Oro Group. Nokia is believed to have lost ground to Huawei and Ericsson due to unsuccessful attempts to integrate Alcatel-Lucent's bought-out business into its workflows, as well as an error in the purchase of computer chips.

Summing up 2020, Nokia said it will optimize its product portfolio and continue to cut costs. Management will inform more about the restructuring program later, and by March 17, 2021 it is only known that the exact amount of job cuts will depend on the development of the market in 2021-2023. The planned changes will not affect Nokia's forecasts for 2021, according to a press release.^[2]

2020

Reduction of more than 6 thousand jobs

By the end of 2020, Nokia's headcount was 92,039, down 6,283 employees (or 6.4%) from 12 months earlier. In 2019, the company's workforce decreased by 4.6%, or almost 5,000 workers.

As noted by SdxCentral, new layoffs are expected at Nokia. Earlier, the company's CEO Pekka Lundmark launched a three-year program aimed at improving the business of the Finnish telecommunications equipment manufacturer, and hinted that inefficient or lagging units could face disbandment.

Technological leadership is paramount if you want to represent economic value.... although in each of the lines of business the number of places for leaders can vary, usually there are two or three, in exceptional cases four, - said Pekka Lundmark during a presentation at the end of 2020.

Nokia in 2020 reduced more than 6 thousand jobs

By the end of 2020, 42% of Nokia's current employees (or almost 39,000 people) worked in Finland and other European countries. The rest of the staff are scattered around the world:

• 20,511 people are in offices in the Asia-Pacific region;
• 13,749 - in China;
• 12002 - in North America;
• 3674 - in Latin America;
• 3,319 Nokia employees are in the Middle East and Africa.

As part of the reorganization, Nokia's management staff was cut from 17 to 11 people, and at least 14 thousand employees of corporate functions were transferred to new business structures.

In 2019 and 2020, Nokia eliminated more than 11 thousand working positions. At the same time, Nokia reports positive figures for staff: by the end of December 2020, the average salary in the company amounted to $78,410, an increase of about 6% compared to a year ago.^[3]

Launch of certification program for training and certification of specialists for work with integrated 5G networks

Nokia on September 1, 2020 announced the opening of the first professional-level certification program designed to train and certify specialists in working with integrated 5G networks. The program covers all aspects of this work - from network access to application management.

The professional certification program, called "Nokia Bell Labs End-to-End 5G Networking," is not tied to the technologies of any one manufacturer. It provides in-depth knowledge of 5G network technologies and focuses on access networks, backbone and transport networks. The program is aimed at training business and technical specialists and is a continuation of the entry-level certification program (Nokia 5G Associate Certification), announced in February 2020.

A deeper understanding of the concepts and typical solutions for integrated 5G networks will allow companies to quickly implement 5G strategies and gain competitive advantages by offering customers useful fifth-generation mobile services.

In the future, each employee of each company will have to have the knowledge necessary to complete each specific task at each point in time. The main condition for this is 5G network technologies, on which the digital factory of the future will be built. Knowing how end-to-end 5G networks work will have an impact on all sides of our connected world. They are essential to choosing the right strategy to grow your business. So wherever you work - in communications delivery, in industrial manufacturing or in the industry at the forefront of digitalization - I advise you to take advantage of our certification program, including its announced level.

NokiaEDU and Nokia Bell Labs are working together on the next phase of our 5G certification program. The 5G Networking training course is equally suitable for business leaders, technology specialists and university students. It provides detailed information that allows you to make strategic decisions and at the same time retains the exciting nature and practical focus of the basic course.

The End-to-End 5G Networking professional course is available on the Nokia website along with the Foundational Certification course. By the end of 2020, additional professional-level courses and certifications will be developed. Each course includes approximately 8 hours of classes, which the student can take at any speed convenient for him.

Nokia is capable of a comprehensive implementation of this program, as it is a vendor whose products and services cover all elements of 5G networks, including radio systems, backbone networks, cloud technologies and transport solutions, as well as solutions for management, automation and security. This allows telecom operators and enterprises of all industries (including industrial production, public order, transport, power, etc.) to easily and efficiently step-by-step update and upgrade wireless access networks, backbone and transport networks and help customers move faster to 5G technologies. Approximately 60% of Nokia customers deploying 5G networks have purchased not only radio access systems, but also other products from this company's comprehensive portfolio of solutions.

Nokia's position in the 5G market is supported by the company's position in the field of research and design in the field of cellular communications, as well as its efforts in the field of standardization. In March 2020, Nokia announced the registration of more than 3,000 patent families of importance for 5G technology. This announcement was made less than six months after the announcement of the previous turn in 2000 patent families. Leveraging the world-class innovations that are being created across the company, including Nokia Bell Labs, Nokia is playing a leading role in 5G technology development, adoption of 5G standards under 3GPP and the practical deployment of 5G networks. At the beginning of September 2020, Nokia is actively working on the following versions of the standards - Release 16 and Release 17.

Court bans Daimler from using Nokia mobile technology without a license

In August 2020, the court of the German city of Mannheim ruled that Daimler Corporation illegally used Nokia mobile technologies in its cars, and issued an injunction.

"The court confirmed that Nokia acted fairly by licensing its patents to basic cellular standards, and that Daimler uses Nokia technology without permission," Nokia said in a statement.

"Today's decision is a serious confirmation of the many years of engineering work of innovators at Nokia and the important principle that innovators should receive fair remuneration for using their inventions. We hope Daimler will now commit and be licensed on fair terms. If we work together, we will win more, "said Nokia Technologies President Yenny Lukander.

Nokia already has agreements with Audi, Bentley, BMW, Mini, Porsche, Rolls Royce, Seat, Skoda and Volkswagen.

Global 5G network speed record announcement

On May 19, 2020, the company Nokia announced a global network speed record. 5G The record was set on Nokia's radio access network in Dallas, Texas. Operating in commercial millimeter bands in an 800 MHz channel with Dual Connectivity (EN-DC) technology, Nokia showed speeds up to 4.7 Gbps on base stations that are installed in most commercial networks the American with telecom operators. This solution will not only provide subscribers with unprecedented speeds, but mobile communication will also allow operators to implement services that operate with minimal delay, as well as allocate applications network segments for critical network segments with guaranteed support for the necessary parameters.

The record speed was achieved with a combination of eight 100 MHz channels each in the 28 and 39 GHz millimeter bands, which provided 800 MHz bandwidth for 5G and 40 MHz for. LTE At the same time, EN-DC dual connection technology was supported, available on Nokia AirScale base stations. EN-DC makes it possible to simultaneously connect devices to 5G and LTE networks and transmit and receive data over both wireless interfaces. Dual-connect devices gain access to a wider bandwidth than devices connected to only one 5G or LTE channel. The record speed was demonstrated in both cloud (vRAN) and classic 5G configurations.

Nokia AirScale Radio Access is a comprehensive 5G commercial solution that allows operators in all countries to optimally use the available 5G frequency resources. This solution supports broad scaling and industry-leading latency and network connectivity by leveraging multi-generation wireless technologies on the same hardware.

This major achievement was the result of the hard work of the professional team, taking into account the slightest details and conditions of the network environment. 8-component carrier aggregation in the millimeter band showed that, in addition to Massive MIMO and Open RAN technologies, we have other means not only to meet the stringent requirements of commercial 5G networks, but also to build future terahertz systems. - says Stéphane Téral, chief analyst at LightCounting Market Research

This is a very important achievement in the implementation of 5G services in the United States, especially now that network connections and communications have become critical. It shows that operators trust Nokia's comprehensive solutions and innovations in providing high-quality 5G services. Nokia has already delivered millimeter-wave radio systems to all major American carriers, and we are ready to continue cooperation and move forward together, - says Tommy Whitto, president of Nokia's global mobile networking business group

Pekka Lundmark is the new CEO of Nokia

On March 2, 2020, Nokia announced the change of CEO. Bloomberg attributes this to the fact that the Finnish company is still losing to Huawei and Ericsson in the market for telecommunications equipment for 5G networks. Read more here.

Registering more than 3,000 patent applications for 5G technology

On March 24, 2020, Nokia announced registration with the European Institute of Telecommunications Standards (ETSI) of more than 3,000 patent families important to the 5G standard.

According to the company, Nokia is actively cooperating with 3GPP in the development of 5G standards that allow the deployment of fifth-generation mobile networks. 3GPP is a partner association of seven standard-forming organizations, including ETSI. Nokia has contributed to the adoption of the first global compatibility standards package for 5G and is now working on the next standards package.

Nokia's successes in innovation and standardization were the result RESEARCH AND DEVELOPMENT of a large investment in. Over the past two decades, the company has invested more than 129 billion euros in scientific research and design development, and in 2019 alone - about 4.4 billion euros. Together with the latest applications, Nokia's portfolio of patents of key importance for standards (cellular communications Standard Essential Patents, SEP) and, in particular, for 5G standards, exceeded the bar of 3400 patent families. Over the past five years, this portfolio has more than doubled. At the same time, as of March 2020, Nokia has the largest market share GSM of SEP patents for technology, 3G, 4G and 5G, including patents that are especially important for 5G standards. Most of the patents were developed by Nokia Bell Labs. The management and licensing of these patents is handled by Nokia Technologies. As of March 2020, more than 200 licensees are its customers, including most of the leading manufacturers smartphones and many automobile brands.

Nokia is demonstrating a comprehensive approach to 5G technology. In addition to wireless networks and access technologies, the company deals with fronthaul technologies, backhaul and optical transport network systems. Nokia Bell Labs recently announced a global record in fiber optic technology that will increase the speed and bandwidth of future 5G networks. Nokia Bell Labs researchers transmitted data over one carrier with speed of 1,52 Tbit/s at a distance of more than 80 km over one standard single-mode fiber. That's equivalent to streaming one and a half million YouTube videos at the same time.

The 5G standardization process is managed by 3GPP. As part of 3GPP, there is a collective development of technical specifications and a choice of technologies from those offered by innovation developers. Products that meet the developed standards will be compatible with products from other manufacturers, which will significantly expand the freedom of choice for users.

Nokia has created many fundamental technologies that are used in almost all mobile devices, digital systems and networks. These innovations are critical to the industrial IoT. We standardize these innovations to ensure they are universally accepted and used. First of all, the advantages of 5G consist in a sharp increase in bandwidth for end users, however, as technologies and network architectures become available, 5G will create opportunities for developing applications for industrial enterprises and industries. Ultimately, comprehensive 5G networks will become a crucial pillar of the Fourth Industrial Revolution. And Nokia Bell Labs will be at the head of these transformations. narrated by Marcus Weldon, Nokia's chief technology officer and president of Nokia Bell Labs

I am thrilled that our scientific and design efforts are creating opportunities for users and for the industrial technology ecosystem, especially now that we are entering the 5G era. narrated by Jenni Lukander, President of Nokia Technologies

2019

Recruiting hundreds of specialists to accelerate 5G product development

Nokia hired about 350 engineers in 2019 to accelerate technology development for fifth-generation (5G) networks. The Finnish company announced this on October 30, 2019.

All new specialists who joined Nokia work in Finland, namely Oulu, as well as in Tampere and Espoo. 240 new employees began to work in the division for the production of products for telecommunications networks. Many of the invited specialists have started developing chips for 5G equipment, the company said.

Nokia hired about 350 engineers in 2019 to accelerate technology development for fifth-generation (5G) networks

Earlier in 2019, Tommi Uitto, president of Nokia's telecommunications division, said in a conversation with Helsingin Sanomat that the company is attracting new specialists to develop 5G technologies. The company began to recruit faster since Uitto headed the main division in the company, replacing Mark Rouen in this post.

About a year ago, I changed the leadership of the telecommunications division. At the same time, I wanted to make sure that we had the right understanding and purpose of how we would act in the 5G market. I am convinced that now we have all this, "Nokia General Rajiv Suri told Helsingin Sanomat, commenting on the then appointment.

By stepping up recruitment, Nokia is looking to improve its financial position in light of the upcoming rollout of 5G networks. The company is actively developing relevant technologies, testing them with the largest operators and participants in the telecommunications market. By the end of October 2019, Nokia had concluded 48 contracts for the supply of equipment for commercial 5G networks. 15 such networks have already been launched.

Nokia says the company is spending more money on developing a 5G solution, and the investment is not yet paying off.^[4]

Military recruitment retired

In mid-July 2019, Nokia-affiliated SAC Wireless launched training centers in the United States as part of its retired military recruitment and training program. Read more here.

Collaboration with Orange and SNCF to explore 5G capabilities to download HD video

On April 30, 2019, it became known that Orange, in partnership with SNCF and Nokia, is exploring the possibility of using 5G to provide passengers with a high-speed HD video download service. Read more here.

Opening a network of cognitive collaboration centers

Logo in 2019

On February 18, 2019, it became known that Nokia announced a network of Cognitive Collaboration Hubs. These centers, created for data specialists, will strengthen cooperation between Nokia, operators and enterprises and create a single space for developing services using artificial intelligence. One of these services - Driver Behavior Analytics - improves road safety by analyzing driver behavior and road conditions in real time. Open centers will offer users hosting on the Nokia AVA cognitive platform to accelerate carrier services to market and increase payback on data analysis solutions.

The Centers for Cognitive Cooperation were created taking into account the positive experience gained in the formation of the Centers for Cooperation in the Field of Cloud Solutions (Nokia Cloud Collaboration Hubs).

The centers will help operators properly choose development strategies and solve important problems using analytical functions and artificial intelligence technologies (Artificial Intelligence, AI). Developers using |the agile methodology will together create, test and quickly - within a few weeks - implement services. Typical applications for these services include operating networks, improving their performance, expanding user functionality, and monetizing data. Another important area is 5G networks . As of February 2019, Nokia is collaborating with a number of American operators in the use of machine learning to optimize the planning of fifth-generation networks. This approach, in particular, will help to correctly determine the locations of base stations and configurations of Massive MIMO antenna technology.

Telecom operators are very interested in using artificial intelligence to optimize networks and strengthen relations with customers. Nokia Cognitive Collaboration Hubs will help you implement these plans. They create a common space for cooperation between operators, partners and enterprises who can together develop solutions with artificial intelligence functions based on experience in the field of telecommunications and data processing.

In many countries, operators successfully use cognitive services based on the listed methods. For example, in Turkey, Nokia and Türk Telekom are testing machine learning and artificial intelligence technologies in the latest generation of mobile networks and fixed networks using the Nokia MIKA virtual assistant on the Nokia AVA cognitive platform.

Nokia also announced a service to improve road safety and passenger convenience called Driver Behavior Analytics. This service analyzes data from conventional sensors in real time, and on this basis generates useful information for government agencies, the automotive industry and commercial enterprises. This solution can transmit useful information about aggressive driving, poor road conditions and dangerous intersections to a smartphone with a proprietary application installed.

2018

Nokia and Ericsson lose to Huawei despite Chinese company's troubles

At the end of December 2018, it became known that  Huawei's competitors - Ericsson and Nokia - could not take advantage of the failures of the Chinese company to strengthen their market position and develop advanced telecommunications equipment. More on this here.

Building a single telecom division ahead of 5G launch

On November 22, 2018, Nokia announced the creation of the Access Networks division, which included a business for the production of equipment for mobile and fixed communication networks. The Finnish company is reorganizing in preparation for the massive deployment of fifth generation (5G) networks in the world.

The head of Nokia's largest structure - Mobile Networks (brings the vendor about 30% of revenue) - Marc Rouanne leaves the company. His duties will be transferred to Tommy Whitto, who Nokia calls a "radio technology expert."

Nokia combines mobile and fixed-line solutions into one structure

Mark Rouen, who joined Nokia from Alcatel-Lucent in 2008, was responsible for the development and sale of 5G technologies at the Finnish company. Tommy Whitto has led the implementation of mobile network products since the sale of Alcatel-Lucent to Nokia for €15.6 billion in 2016.

Mark Rouen became the second senior executive to leave Nokia in the fall of 2018. In October, the head of the patent business Ilkka Rahnasto left the company, Reuters said.

By creating a single Access Networks organization that includes mobile and fixed businesses, we will be able to improve our focus on customers, simplify the management structure and increase the efficiency of our entire product portfolio, "said Nokia CEO Rajiv Suri.

The president of the newly minted Access Networks division will be elected later. Structural changes at Nokia will take effect on January 1, 2019.

The company says that the announced changes, including personnel, are aimed at ensuring that the organizational structure is consistent with Nokia's strategy. The telecommunications equipment manufacturer, as a result of the reorganization, strengthened top management and strengthened its position before the start of the 5G era, Nokia noted.^[5]

Laying off "thousands" of employees for 5G development

On October 25, 2018, Nokia announced another mass layoffs at the company. The Finnish manufacturer of telecommunications equipment continues to invest in the development of equipment and services for fifth-generation networks (5G), so it is forced to save, including on employees.

According to CNBC, citing Nokia General Rajiv Suri, "thousands" of jobs around the world will be cut within two years. Exactly how many employees will be left without work and to which regions the dismissal program will be extended, the head of the company did not specify.

Nokia fires thousands of employees for 5G development investment

We have not yet decided on the amount of staff being removed, but we will begin to work on this and make a breakdown by country in order to disclose the numbers at the right time, "Suri said.

According to him, the winner in telecom is the one who works with minimal costs and has the "correct structure of low costs."

Nokia is eliminating part of the state as part of a program that involves a reduction in annual spending by 700 million euros by the end of 2020. It will follow another savings program: in 2016, after buying rival Alcatel-Lucent for $18 billion in 2016, Nokia set a goal of reducing annual operating costs by 1.2 billion euros by reducing the number of overlapping products, services and sales specialists. This program will end in 2018.

On October 25, 2018, Nokia announced its intentions to first reduce operating costs by 500 million euros, and then bring the figure to 700 million euros by "significantly reducing centralized support functions" and "sharply reducing research and development of outdated products."^[6]

Even if these steps are right for our business, we are not doing them with a light heart given the impact on our employees, "Rajiv Suri stressed.

= = = Create a joint venture with Rostelecom

On September 24, 2018, it became known about the creation of joint ventures between Rostelecom and Nokia - RTK - Network Technologies. It will focus on the production of software and equipment for communication networks in the context of the import substitution policy. The basis for development will be Nokia technologies and domestic solutions. Read more here.

Europe gave Nokia a loan of 500 million euros for the development of 5G

On August 27, 2018, Nokia announced that it had received a €500 million loan from the European Investment Bank for the development of fifth-generation (5G) networks. The loan was approved by the European Strategic Investment Fund.

The loan will be used to accelerate the development and development of 5G technology - a new mobile communication standard, Nokia noted.

As the Reuters news agency recalls, earlier in 2018, the European Investment Bank provided Nokia's Swedish rival, Ericsson, with funds in the amount of 250 million euros for the same purpose. At the same time, the terms of agreements with companies differ, the bank explained.

EIB will give Nokia a loan of 500 million euros for the development of 5G technology

Every year Nokia sends up to 4 billion euros to research and development, and most of this amount goes to 5G technology.

We need to understand that China and the United States are moving quickly towards 5G. It is very important that European companies participate in this race... The rest of the world caught up and then got ahead of us on 4G. Now we need to show that our flagship companies can compete not only in Europe, but also in the international arena, "said Alexander Stubb, vice president of the European Investment Bank, in a conversation with Helsingin Sanomat.

According to Nokia CEO Rajeev Suri, the loan provided by Europe will help the company not only in 5G research, but will also help maintain the dynamics of attracting new customers. The European Investment Bank supports Nokia's view that 5G technology appears earlier than expected, it added.

The European Investment Bank believes that the loan will spur further investments of up to 1.5 billion euros among small and medium-sized companies and help Nokia strengthen in France, Finland, Poland, Germany and other countries.

Sale of 3.3% of shares in the Finnish state fund Solidium

On March 13, 2018, the Finnish state investment company Solidium announced the purchase of a 3.3% stake in Nokia for 844 million euros (more than $1 billion). With this deal, the state will increase its influence on the Finnish manufacturer of telecommunications equipment. Read more here.

2017

Patent agreement with Huawei

On December 21, 2017, Nokia entered into a patent agreement with another major phone manufacturer, Huawei. Experts estimate the annual earnings of the Finnish company from this transaction at 100 million euros, which is two and a half times less than payments from Apple.

Huawei has pledged to regularly pay royalties to Nokia for the use of patents, starting in the fourth quarter of 2017. In addition, the Chinese company will make a one-time payment to Nokia.

The financial terms of the transaction were not disclosed. According to the analyst of the research company Inderes Mikael Rautanen (Mikael Rautanen), as part of the licensing agreement, Huawei will annually transfer Nokia more than 100 million euros, while Apple, according to the estimates of the same expert, pays 250 million euros.

Huawei pledged to pay Nokia more than 100 million euros a year for using patents

This is an important deal, as Nokia now has agreements with all major phone manufacturers. Problems in the telecom market remain, but growing patent revenue will offset this, said Rautanen, who set Nokia's stock rating at "buy."

According to the Reuters news agency, in addition to Huawei, Nokia has signed a licensing agreement with Apple, Samsung Electronics, LG Electronics and Xiaomi.

In all cases, contract details are not specified. It is only known that partners make regular payments to Nokia, and the latter grants the right to use its patents, which, among other things, reduce the number of components in smartphones, extend the battery life of devices and improve signal reception. This business brings Nokia most of the profit, while over 90% of revenue is concentrated on sales of telecommunications equipment and software.^[7]

After the announcement of the deal with Huawei, Nokia shares rose 2.1%. From the beginning of 2017 to December 21, companies decreased by 14%.

Layoffs after Alcatel-Lucent purchase

Nokia confirmed in June 2017 its intention to reduce 170 positions in Finland as part of a major cost reduction plan adopted after Alcatel-Lucent's $16.6 billion mega-purchase in 2015^[8].

The company cut 960 job positions in Finland last year and said it planned to lay off 1,400 more employees in Germany.

In 2016, Nokia announced that it plans to reduce thousands of job positions worldwide as part of its $1.3 billion global cost reduction plan adopted after the Alcatel-Lucent purchase. The company can lay off up to 15 thousand people. Of the total number of personnel (including Alcatel-Lucent), about 101 thousand people, that is, more than 14% of the total staff.

Nokia has set a goal of reducing current costs by approximately $1 billion by 2018, aiming to achieve savings in production costs, real estate costs, as well as in services, procurement and supply chain.

It is expected that the announced layoffs and reductions will take place in the divisions where there is an overlap - in R&D, as well as in regional offices and sales departments.

Resolving the conflict with Apple

In May 2017, Nokia and Apple settled a patent dispute, as a result of which the American company will pay hundreds of millions of dollars to Finland as part of a multi-year licensing agreement.^[9]

In addition to settling the claims, the agreement assumes that Nokia will provide Apple with a number of products and services in the field of network infrastructure, and Apple will continue to sell Nokia fitness devices in its stores (they are produced by Withings, which Nokia bought in 2016). In addition, the companies will cooperate in the creation of medical devices.

Apple and Nokia begin close cooperation, resolving patent dispute

The financial component of the contract was not disclosed, but it is known that we are talking about hundreds of millions of dollars that Nokia will receive in the form of an advance payment and additional deductions during the term of the licensing agreement.

This agreement is of great importance for Nokia and Apple, says Maria Varsellona, head of Nokia's legal division, responsible for licensing issues. - Apple and I are now not rivals in court, but business partners working for the benefit of our customers.

At the end of 2016, Nokia filed lawsuits against Apple in several courts, including German and American. The Finnish telecommunications equipment maker alleged that Apple violated 32 patents that relate to various elements of mobile devices, including the display, user interface, video encoding and antenna.

Nokia's move was a response to Apple's antitrust lawsuit, in which an American corporation accused an opponent and several other companies of illegally transferring patents in order to extort excessive patent payments. In May 2017, all claims were withdrawn.

According to analysts interviewed by Reuters, the proceedings between Apple and Nokia could have dragged on, so they were surprised at the fairly quick resolution of the conflict.^[10]

2016

Lawsuits against Apple for violating 32 patents

December 22, 2016 it became known about new claims of Nokia in the field of patent law compliance by Apple.

Nokia press service announced Apple's infringement of 32 patents owned by the Finnish company, including rights to display manufacturing technologies, user interface, software, antennas, microcircuits and video encoding^[11]

Thanks to our regular investments in research and development, Nokia has created or contributed to the creation of many fundamental technologies that are used in modern mobile devices, including Apple products. After several years of negotiations and attempts to reach an agreement on Apple's use of these patents, we are now taking action to protect our rights. Ilkka Rahnasto, Head of Patent Department at Nokia

The lawsuits are filed in a number of district courts in Germany, in the district court of the Eastern District of Texas, USA. The company announced its readiness to file lawsuits in courts in other countries.

The history of the conflict between Nokia and Apple dates back to 2009, then the Finnish vendor accused the American competitor of violating patents for technologies used in mobile devices.

Then Nokia demanded a royalty of 1-2% ($6-12) from each iPhone sold. In 2011, the parties entered into a licensing agreement, ending disputes over 46 Nokia patent complaints.

Plans to return to the digital technology market

On February 15, 2016, it became known about Nokia's active actions to return to the production of digital devices. The company is in talks with major Finnish manufacturer^[12]

According to Planet Today, Nokia is in talks with Finnish Bittium to allocate production facilities for the brand to release its devices in Finland.

If the deal goes through, Nokia will have to complete its contract with Foxconn (Hon Hai Precision Industry) - it is busy producing the N1 tablet under the Finnish brand. In addition, the publication reported - if the partners come to an agreement, consumers will see the first copies of Nokia equipment by the end of 2016.

Mass layoffs

On April 6, 2016, Nokia announced massive job cuts in 30 countries around the world. The company can lay off up to 14% of employees.

According to Reuters, citing Nokia's statement, it is planned to liquidate 1,300 working positions in Finland, and 1,400 in Germany. In France, 400 people will lose their jobs, but in return the company intends to hire 500 people there to conduct scientific research in accordance with agreements with the French government as part of the acquisition of Alcatel-Lucent.

The promises made by Nokia when buying Alcatel-Lucent have been kept, "said Frederic Aussedat, a spokesman for the French union CFE-CGC[13]

Nokia cuts up to 14% of the state

According to Bloomberg sources, Nokia really did not fire people en masse in France, leaving about 4,200 jobs there, 2,500 of which are R&D specialists.

By the beginning of April 2016, the total number of Nokia personnel is about 104 thousand employees. In Finland, Germany and France, 6850, 4800 and 4200 people work, respectively. The company did not specify the scope of the global HR reorganization.

Bloomberg, citing people familiar with Nokia's plans, reports that the company wants to cut from 10 to 15 thousand jobs around the world, that is, up to 14% of the state. This is done in order to overcome the problems associated with the difficult market conditions and strong competition from Huawei, one of the sources told the publication.

According to Bloomberg interlocutors, Nokia CEO Rajeev Suri discussed the upcoming cuts with trade union representatives during a conference call on April 6, 2016. The company's management intends to meet with workers in several countries in April-May.^[14]

2015

Nokia buys Alcatel-Lucent for 15.6 billion euros and creates Nokia Corporation

On April 15, 2015, Nokia Corporation announced the purchase of Alcatel-Lucent. As a result of this transaction, which became the largest for the Finnish vendor, the largest manufacturer of telecommunications equipment will appear.^[15]

For the acquisition of Alcatel-Lucent, the company Nokia will pay 15.6 billion euros, or 4.12 euros per share, which is 8% less than its exchange value as of April 14, 2015. The announced deal provided Nokia securities with growth of 2.8%, while Alcatel-Lucent quotes decreased by 9%, although on the eve of the announcement of the agreement they jumped by 16%.

As a result of the merger of Nokia and Alcatel-Lucent, Nokia Corporation was created with a staff exceeding 110 thousand people. Nokia promises not to cut jobs beyond those planned by Alcatel-Lucent. Read more here.

Return to the smartphone market

A message published on the official website on July 13, 2015, Nokia announced the brand's return to the smartphone market. True, the work of the Finnish company in the mobile industry will be carried out in a different format than before.

Nokia Technologies spokesman Robert Morlino said on behalf of the company that upon returning to the mobile phone market, Nokia will license its trademark. That is, the European vendor intends to develop gadgets, share its technologies and sell the rights to sell its devices to another company. The latter will have to take over the development and sale of Nokia products, as well as deal with marketing and customer support issues. According to this scheme, Nokia, together with Foxconn (Hon Hai Precision Industry), is distributing the Nokia N1 Android tablet.

Nokia intends to return to the smartphone market with the help of a world-class partner

Nokia is looking for a "world-class partner" to help the company return to the smartphone market, Morlino said. The names of companies that could potentially assist the Finnish manufacturer are not specified.

A Nokia spokesman noted that the company will be able to release smartphones no earlier than the fourth quarter of 2016. This is prohibited by the specified period by an agreement with Microsoft signed in 2014 regarding the sale of Nokia's telephone division to an American software corporation.

By mid-2015, Microsoft had abandoned the Nokia brand in Lumia smartphones, but still offers regular phones under this brand.^[16]

"For 14 years, Nokia has been the world's largest manufacturer of mobile phones, and the company's brand has become a household name, symbolizing quality, innovation and connection between people. It still has wide recognition among millions of people around the world, delighting those people who helped build the brand. Therefore, it is not surprising that the question constantly arises about whether Nokia will return to the mobile device market. It is difficult to answer him, "said Robert Morlino, stressing that the return can only be realized with the assistance of a partner

2013

Sale of Microsoft mobile business for $7.2 billion

Microsoft on September 2, 2013 confirmed its intention to acquire Nokia's mobile division. Microsoft and Nokia Corporation announced a deal that will see Microsoft acquire Nokia's device and service businesses, licenses for Nokia-owned patents, and licenses for Nokia-owned mapping services. Read more here.

Nokia's Share Dynamics in the Cell Phone and Smartphone Market

Mobile phone and smartphone sales leaders from 1992 to 2018 in animation below.

Repurchase Siemens stake in Nokia Siemens Networks

In June 2013, Nokia and Siemens announced the signing of a binding agreement in which Nokia would acquire Siemens' 50 percent stake in the Nokia Siemens Networks joint venture.

The transaction amount is 1.7 billion euros. Of these, 1.2 billion euros will be paid in cash, before the completion of the transaction. Since its inception, the company has become one of the largest manufacturers of communication equipment, which is used by operators in more than 150 countries around the world. Read more here.

2012: Abbreviations

• 24 Apr 2012 rating agency Fitch downgraded Nokia's credit rating from BBB- to a "junk" level in BB + with a negative outlook. Analysts adversely assess the company's prospects in 2012-2013.

• In June 2012, it became known that Nokia plans to cut 10,000 jobs worldwide. As part of the largest reduction in the company's staff over the past few years, the only Nokia plant in Finland will also be closed. The total number of job cuts since 2010, when Stephen Elop became the head of the company, reached 40 thousand.

2011

Partnership with Microsoft

Logo in 2011

In February 2011, Anssi Vanjoki, head of Mobile Solutions, announced his intention to leave Nokia in March 2011. In addition, a marketing director was appointed. It was Jerry DeVard.

In the same month, Nokia announced a partnership agreement with Microsoft, under which its smartphones will use the Windows Phone operating system. The share of this operating system in the IV quarter of 2010 decreased to 3%. However, for Microsoft, this alliance can be beneficial. In 2010, Nokia delivered a total of 453 million mobile phones - a good base for distributing Windows Mobile.

It was announced that Nokia's business would change radically by the end of 2012. To stop the fall in the share of the smartphone market, the company will jointly develop a new operating system with Microsoft.

The new strategy was presented by Nokia CEO Stephen Elop. Shortly before that, Elop sent a letter to employees: "The first iPhone appeared in 2007, and we still have nothing comparable. Android has only been on stage for two years - and seized our leadership. Incredibly».

In the coming years, smartphones will be the engine of the market - devices with operating systems where you can download third-party applications, Elop is sure. According to IDC, the share of smartphones in phone shipments increased from 15.8% in Q4 2009 to 25.1% in the same period in 2010. Nokia's problem is the lack of a global ecosystem like those created by Google and Apple, Elop is sure. He promises to build such an ecosystem with Microsoft, where he worked for several years. The main operating system for Nokia will be Windows Phone from Microsoft, a new operating system will be created on its basis. Nokia's contribution will be hardware solutions, language support, and a mapping service. Microsoft will provide the search engine Bing, to which the adCenter online advertising system will be tied, and Nokia's app and mobile content store will be merged with Microsoft Marketplace.

Nokia will pay Microsoft royalties, but promises to compensate for this with a sharp reduction in the development budget, which is now ($8.1 billion) four times more than Apple. Elop also promises to downsize.

Top manager Google Vic Gundrota remarked in a personal blog: "You can't make one eagle out of two turkeys." For Nokia, the transition to Windows Phone is the only way to maintain market share, while maintaining the difference from brands that have switched to Android, said Acer Gleb Mishin, director of the Russian office. He calls the alliance of Nokia and Microsoft a union of the weak against the strong.

After the announcement of the ADR alliance, Nokia Corporation on the New York Stock Exchange fell 14%, and Microsoft shares fell 0.9%.^[17]

Downsizing

In April 2011, it became known that by the Nokia end of 2012 it plans to reduce 4 thousand employees in its branches around the world. First of all, this will affect Denmark, Finland and. Great Britain

In addition, according to the official statement, by the end of 2011 Nokia intends to hire 3,000 employees in the USA, Great Britain, Finland, China and India, transferring them to work in Accenture, where they will continue to deal with the Symbian operating system.

Accenture is an international consulting and outsourcing company, a long-time partner of Nokia (the parties have been cooperating since 1994). In October 2009, Accenture acquired the Nokia group, which provides technical support to telecom operators and manufacturers using Symbian-based smartphones.

After Nokia employees move to Accenture, they will continue to develop programs for Nokia using an outsourcing model. Subsequently, when the company stops releasing smartphones with Symbian, the partners promise to offer developers new promising positions.

With the help of the above measures, Nokia expects to reduce annual costs by €1 billion by 2013 compared to 2010, the company's press service explained. Nokia CEO Stephen Elop called the staff reduction "a harsh reality," a necessary measure that the vendor has to take in order not to finally go to the bottom himself.

During Elop's tenure, this is the second major announcement of downsizing. The first (1,800 people) was done in October 2010 almost immediately after the change of head. At the end of 2010, Nokia employed approximately 132 thousand people.

Employees who will be fired from the Finnish telecommunications concern Nokia over the next year may find jobs in new IT centers, which are now being intensively created in the giant's homeland - in the Finnish region of Tampere-Pirkanmaa. Among the partners of local authorities for creating new jobs are companies such as Intel, Google, Palm, Skype, HP, LG, and China Mobile. The most promising are Intel's plans to create a MeeGo center in Tampere for research and development of this operating system. According to the municipal authorities, out of 1,400 Nokia employees dismissed in Finland, 400-500 people live in Tampere. In total, the region will have to create 2600 jobs for IT personnel, including within the framework of major EU projects.

2010

The new head of the company is Stephen Elop

In September 2010, Nokia CEO Olli-Pekka Kallasvuo was replaced by Stephen Elop, former president of Microsoft Business.

In October 2010, after the arrival of Elop, Nokia left the head of MeeGo platform development Ari Jaaksi. In the same month, the Symbian Foundation, founded by Nokia, left its head Lee Williams for personal reasons.

R&D Center with Intel

In August 2010, Intel, Nokia and the University of Oulu (Oulu, Finland) announced the opening of a joint research and development center, which became part of the European network Intel Labs Europe, which includes 22 centers as of August 2010.

The new center is located in the Center for Internet Excellence complex at the University of Oula and is integrated with the Oulu Urban Living Labs technology park, which is a good environment for deep research and pilot projects, the official statement said.

The initial goal of the first joint R&D center of Intel and Nokia, with about 24 scientists, will be to develop new types of interfaces for mobile devices, including 3D holograms of the interlocutor, which could previously be seen in science fiction films. Some of the projects will affect the MeeGo platform, and their results will be available under open licenses.

2007: 68K employees

Nokia on the cover Forbes: "Who can catch up with the king of phones?," 2007.

As of the end of 2007, Nokia's headcount is 68,321.

But 2007 was the beginning of the end for Nokia, the first iPhone appeared on the market, it had a touch screen.

2006: Creation of Nokia Networks and Siemens JV

In June 2006, it announced the merger of Nokia Networks with the corresponding telecommunications division of Siemens. The joint venture with equal shares of Nokia and Siemens will become a world leader, occupying a strong position in the most important and growing sectors of the technology and services market for fixed and mobile communication networks.

2005: Olly-Pekka Callaswuo - Head of Company

Since October 2005, Nokia Corporation has been headed by Olli-Pekka Kallasvuo.

1990s: The GSM era, telecom is becoming a core business

On July 1, 1991, the very first call through the GSM commercial network was made by the Prime Minister of Finland - by phone Nokia. The success of the project impressed the company's board of directors, and Ollila was appointed CEO of Nokia a year later.

Since 1996, telecommunications has become the main area of ​ ​ activity of Nokia. It was not for nothing that the Finns risked. After all, when Nokia invested its resources in GSM, it was a moderately successful company from a small country that challenged the already firmly on its feet infrastructure, in which billions of dollars were invested, and the universally accepted standard. Soon the company enters into agreements to provide GSM networks to 9 more European countries. By August 1997, Nokia was supplying GSM systems to 59 operators in 31 countries.

I must say that by this time Finland is covered by the deepest decline in production. And despite the fact that in the 80s Nokia became the third manufacturer of TVs in Europe, as well as satellite receivers of the company and a branch engaged in the production of car tires gained great popularity, especially given the consistently high quality of the entire range of products offered, Nokia had to make a risky choice. In May 1992, Jorma Ollila, who headed the company, decided to reduce all other branches and focus scientific and production capacities on telecommunications.

It was when the company seriously took up the production of mobile phones and other telecommunications products that it entered international markets. As a result, in the late 90s Nokia became the leader in the digital communications technology market.

By 1997, Nokia was a manufacturer of mobile phones of almost all major digital standards: GSM 900, GSM 1800, GSM 1900, TDMA, CDMA and Japan Digital. Thanks to such extensive capabilities, the company was able to quickly strengthen its position in Europe and Asia.

Already in 1998, it announced a 70 percent increase in sales (210 billion euros), while its main competitors Ericsson and Motorola limited themselves to reports of a slowdown in production. Demand for mobile phones continued to grow, along with Nokia's market share. In 1999, the company won 27% of the mobile phone market, with Motorola, which was second, lagging behind it by as much as 10%.

1980s: Mobile phones, NMT standards

The new legislation allowed, for example, Sweden the installation of mobile phones in cars and their connection to a common network. Since Nokia rapid expansion in all directions became the main strategy in the 1980s, the prospects opened up pushed Nokia to take decisive action. And the result was not long in coming: in 1981, a cellular network was created that covered Sweden Finland and was called Nordic Mobile Telephony (NMT). It later included other countries both in and To Europe outside of it. The system was based on Nokia technologies. The rapid development of the mobile phone industry began. Appearing in 1981, it became NMT the first common cellular standard.

In 1987, when all mobile phones produced were quite heavy and had large dimensions, Nokia released one of the lightest and most transportable mobile phones. This made it possible to win back a significant part of the market.

Due to the gradual unification of European markets in the late 80s, there was a need to develop a single digital standard for mobile communications, later called GSM (Global System for Mobile Communications).

In 1989, Nokia and two Finnish telecommunication operators formed an alliance to establish the first GSM network. In order not to lose ground in the competition with Telecom Finland, which owned a long-term, state-backed monopoly on long-distance telephone, analog communication mobile service providers Helsinki Telephone Corporation and Tampere Telephone Company created Radiolinja. This company bought infrastructure worth 50 million from Nokia, dollars even despite the lack of a license for a new network. In 1987, Nokia launched the first cell phone on the market.

Jorma Ollila, invited to Nokia by Kari Cairo, headed the company's mobile phone division in 1990. There was a lot of talk about the new project, everything raised doubts: from the fundamental need for a network to technological issues. Yet the Nokia team believed in digital communication and continued their work.

1960s: Start a business in electronics

Nokia began operations in the Soviet Union in the 60s.

In 1966, the merger of three enterprises - Nokia, FRW and FRC - began and was finally formalized in 1967. Oy Nokia Ab was an industrial conglomerate operating in four main areas: the forestry industry, rubber, cable and electronics manufacturing. Older areas, especially cable production, continued to ensure Nokia's profitability. Some Finnish observers believe that the control system was taken from a cable factory; and the rubber industry brought money. And the electronics department helped revive Nokia's competitiveness on a new round of the company's development.

Back in the 60s, the president of Finnish Cable Works, Björn Westerlund, established an electronics department that conducts research in the field of semiconductors. The main staff of the department are university and college staff, with whom Westerlund has long maintained a good attitude. The head of the department, Kurt Wickstedt, who called himself "numbers mad," perfectly imagined all the prospects for the development of electronic communications and skillfully directed the efforts of developers in these very priority areas. The moods then in the air could be described with the words "everything is possible and everything needs to be tried."

In 1963, the first radiotelephone was developed, and in 1965, a modem for data transmission. Nevertheless, most telephone exchanges at that time had electromechanical switching devices and no one even thought about the possible "digitalization" of their equipment. Despite the similar conservatism that then reigned in this area, Nokia still undertakes the development of a digital switch based on pulse code modulation (PCM). In 1969, she was the first to produce PCM transmitting equipment that meets CCITT (International Telegraph and Telephone Advisory Committee) standards. The transition to the digital telecommunications standard was one of the most important strategic decisions for the company, which was confirmed in the early 70s by the release of the DX 200 switch. Equipped at that time with a high-level computer language and Intel microprocessors, it turned out to be so successful that to this day the ideas embedded in it are the basis for the company's telecommunications infrastructure.

1920: Formation of Nokia Group

Meanwhile, in the United States, the "rubber fever" of the early 1830s ended as unexpectedly as it began. Many investors have lost millions of dollars. In Finland, rubber products appeared at the end of the 19th century. The first products were shoes and various objects made of rubberized fabric. At first they were a luxury, but very quickly raincoats and kaloshi gained popularity in cities and rural areas. Rubber products have become the property of not only the consumer, but also the business market. Due to industrialization, there was a demand for various equipment, which meant the need for all kinds of rubber products. In Finland, the main manufacturer of such products was Finnish Rubber Works (FRW). When FRW management decided to move its production from Helsinki to the countryside, it opted for a site near Nokia. The ability to buy electricity inexpensively from Nokia became decisive - the river near which the plant was located served not only as a decoration of the landscape, but also as a source of cheap electricity.

In 1912, a company was opened in the center of Helsinki, later called Finnish Cable Works. The increasing need for transmission of electricity, as well as the rapid development of telegraph and telephone networks, ensured the rapid growth of the company. Looking ahead, it should be noted that after the end of World War II, the company was practically a monopolist who owned the absolute majority of Finnish cable manufacturers. In 1920, these three firms: Nokia Corporation, Finnish Rubber Works and Finnish Cable Works, entered into a coalition to form Nokia Group. Participation in this industrial conglomerate involved Nokia's opposition to social, political and economic events: the "stormy twentieth," and the Great Depression, and the invasion of the Soviet Union, and subsequent wars, and the payment of reparations to Moscow.

Although Nokia lost its corporate autonomy, its name very soon became a common foundation for the three firms, and in the same years FRW began to use the name "Nokia" as its brand. True, soon the third of the companies, Finnish Cable Works (FCW), lured Nokia to a new sector for it - the construction of power plants.

In the 1920s and 30s, Nokia was already leading in all areas of its activities. It was diversification that helped the company almost painlessly go through difficult times in economic terms: when some sector of the economy was in decline, Nokia survived at the expense of enterprises in other^[18].

1865: Paper Mill Opened

It is customary to count the history of Nokia since 1865. On May 12, 1865, Finnish mining engineer Fredrik Idestam received permission to build a factory to produce wood pulp near the Nokia River. This was the beginning of the future Nokia Corporation. It was during these years that the industry grew rapidly. Industrialization, the need for paper and cardboard for growing cities and offices grew every day. And now the pulp and paper mill has grown on the site of the mill. Over time, the Nokia combine attracted a large number of workers, so soon the city of the same name, Nokia, formed around it. The company grew from a national scale, Knockia paper began to be supplied first to Russia, then to England, France, and even China. In the late 1860s, the demand for paper products in Finland many times exceeded the volume of domestic production, which increased the import of raw materials from Russia and Sweden.

In February 1871, Nokia Corporation (Nokia Aktiebolag) was founded. The company confidently won the markets of Denmark, Germany, Russia, England, Poland and France. By the way, business people from St. Petersburg played an important role in Nokia's entry into the international arena.

Notes