Telecom and 5G equipment maker Nokia may sell its managed services business, and private equity firms may have interest in a potential deal, Bloomberg reported.
The Nokia managed services business, which generates about $510 million in annual revenue, offers network maintenance and data management services to communication service providers (CSPs), the report indicated.
Nokia Managed Services: Recent Business Moves
Nokia expanded its managed services in February 2022 with two new capabilities:
- Operations Transformation, a multi-year service with a focus on "guiding CSPs to enhance productivity and agility of their operations through cloudification and automation. "
- Operations Intelligence, which uses AI driven analytics to "precisely pinpoint issues, with the end goal of enabling CSPs to increase business outcomes like Net Promoter Scores (NPS) and returns on their 5G investments."
Nokia also offers managed security services -- including managed detection and response (MDR) for 5G security. The managed security services also span:
- Assessment services;
- Security infrastructure management;
- Vulnerability management;
- Secure configuration and hardening;
- Audit and compliance management;
- Security control lifecycle management; and
- SW and application security services.
We don't know if the managed security services are part of the potential asset sale. Nokia did not comment about the Bloomberg report, and there's no guarantee that the managed services business unit will be sold, the report indicated.
Nokia Business Turnaround Shows Progress
Meanwhile, Nokia's overall business turnaround plan is on track to hit the higher end of its 2022 sales forecast, The Wall Street Journal reported. Among the recent business milestones: Revenues rose 11% to $6 billion in Q2 2022 vs. Q2 of 2021, the telecom equipment maker said.
