Nokia Oyj (ADR) (NYSE:NOK), which happens to one of the major phone manufacturers in Finland at the moment has plans underway to move ahead and sell its undersea cables unit, which is indeed a business that underpins the global internet.
According to some reliable sources, the division is valued at around 800 million euros which when translated to dollars amounts to about $870 million. It is considered as one of the best performing and highest revenue-fetching undersea cable networks globally and the telecom equipment maker had made the move to buy it the previous year as part of its 15.6 billion euro ($17 billion) acquisition of French rival Alcatel Lucent SA (ADR) (NYSE:ALU).
Back then, the French government had gone ahead to term the business as being rather strategic for the country considering that it was greatly entrusted with ensuring that indeed there were high-speed internet connections with the African countries as well as the oversee territories.
The other thing that can’t be left unsaid would of course be the fact that it as a matter of fact plays a central role when it comes to ensuring efficient cyber-surveillance as well as national security.
Alcatel Submarine Networks (ASN) as a unit is a major employer going by the 1,000 figure of the people it employs who are mostly from Britain and France. It does quite a remarkable job in the deployment as well as in the overall maintenance of the submarine cables.
As a matter of fact, Nokia has over the years succeeded at running it as a separate business entity and close sources to the company reveal that its results are aggregated to those of the parent company.
One of the sources moved ahead to say, “Nokia’s intention to eventually sell ASN was expressed by Nokia on various occasions in talks with the state and relevant stakeholders, including the staff. ASN isn’t indeed a core business, according to Nokia,”
One thing that is for sure is the fact that Nokia’s overall management in France is said to have moved forward to inform the staff internally about the intentions of the group.