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Tetra is used by emergency services and police forces, and at least one public network operator serving business users in Europe. The unit is part of the Nokia Networks division, which employs around 19,000 people worldwide.
Nokia gave no cost-saving estimates but said the market for TETRA systems was weak, having taken off more slowly than anticipated.
Only last week Nokia's chief financial officer Olli-Pekka Kallasvuo said that he did not expect further restructuring at the company's networks division.