Nokia and Siemens invest €1bn in joint network venture

Nokia and Siemens are each investing €500m into Nokia Siemens Networks in a bid to strengthen the joint venture's financial position.

Nokia and Siemens are each investing 500m into Nokia Siemens Networks in a bid to strengthen the joint venture's financial position.

The telecoms equipment provider, established in 2006, revealed plans to open a global operations centre in Brazil last year to support the firm's operations worldwide. The company recently completed its acquisition of the wireless network infrastructure equipment division of Motorola.

In a statement, the companies said the capital investment will "further strengthen the company's financial position and set the stage for strategic flexibility, productivity and innovation in areas such as mobile broadband and related services".

Nokia Siemens also announced Jesper Ovesen as its new executive chairman of the board. Ovesen's role will involve strengthening the company's position as an independent entity.

"As executive chairman, he will also be responsible for strategy oversight as Nokia Siemens Networks transitions towards a strong standalone entity," said Nokia CEO Stephen Elop.

Nokia is to axe a further 3,500 jobs as sales of its handsets continue to plummet. Nokia said the plans will start to affect staff numbers from next year.

Nokia announced a partnership with Microsoft earlier this year to use the Windows Phone 7 platform on its smartphones.

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