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Nokia outsources mobile network R&D

Nokia has announced plans to outsource part of its research and development (R&D) on mobile networks.

From 1 October, the Finnish-Swedish IT services company TietoEnator will assume responsibility for approximately 300 Finland-based Nokia employees as part of the plan.

TietoEnator will carry out software development, testing and maintenance work related to the mobile core network for second- and third-generation mobile networks and Terrestrial Trunked Radio networks. TietoEnator will also work on Nokia's switching platform.

Arja Suominen, a Nokia spokesman, said by outsourcing part of its R&D, Nokia hoped to be able to more-speedily market products incorporating the latest technology.

"There will be new technologies coming to the market," she added. "First third-generation networks and then all-IP-based networks. The co-operation with TietoEnator will make us more flexible and allow for faster development cycles.

"I don't want to call this a traditional outsourcing agreement because cost isn't the main driver and it is also not a people issue. We call it a co-operation to broaden our R&D base."

The agreement is subject to approval by the Finnish competition authorities.

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