Nokia CEO Justin Hotard recently indicated that the four business units under review do not fit within its current strategy. These units, which includes its private wireless offering, will likely be put up for sale in 2026.
In a presentation at the vendor’s Capital Markets Day where it revealed a strategic revamp, Hotard and CFO Marco Wiren fleshed out details about its decision to place Enterprise Campus Edge – which bundles private networks, Wi-Fi connectivity and on-premise edge, along with Fixed Wireless Access CPE, Microwave Radio and Site Implementation and Outside Plant – into a dedicated portfolio business segment, separated away from two main operating units: Network Infrastructure and Mobile Infrastructure.
While the official statement announcing the revamp stated it was conducting reviews with a decision on the businesses next year, Hotard revealed during the presentation the units do not tie in with five strategic priorities outlined as part of his vision to tap into opportunities around AI.
He explained that over the past 12 months, the businesses in question generated approximately €900 million in net sales, with a gross margin of 22 per cent and an operating loss of €100 million.
These numbers “set out a plan to improve execution in these businesses and to define the right path forward for each of them during 2026”.
Wiren added Nokia had conducted a review focused on market position, margin profile and strategic fit, with the conclusion that “these are not core to Nokia, and we are not the right owner”.
“We are assessing the best path of each of these businesses and owners as well, and we expect that we will have a solution by the end of 2026”.
Despite the review, a Nokia spokesperson told Mobile World Live its leadership position and commitment to private 5G market remains unchanged.
“Nokia continues to sell radios for private wireless deployments together with Nokia and third-party core. As communicated at our Capital Markets Day, Nokia’s key customer segments include not only telcos, AI and Cloud, but mission-critical enterprises, including defence”.
Source: Mobile World Live
Image Credit: Nokia