Nokia provides a mid-point update on strategy and operating model
Nokia Corporation
Stock Exchange Release
December 16, 2020, at 08:00 (CET 1)
Nokia provides a mid-point update on strategy and operating model
Nokia aligns to deliver critical networks to CSPs, enterprises and webscales.
Company aims for technology leadership in all segments it chooses to play in.
Nokia sees value gradually migrating from monolithic systems towards silicon, cloud-native software and services, and the industry moving towards as-a-service business models.
Provides transparency on expected operating margin performance of its four new business groups in 2021. Previously provided outlook for 2020 and 2021 remain unchanged.
Espoo, Finland - Today Nokia provides an update on its strategy and operating model. On October 29 Nokia announced the first phase of its new strategy, outlining high-level strategic principles alongside a new operating model designed to better position the company for changing markets and align with customer needs. The new model is effective from January 1, 2021. Detailed business group strategies will be provided on Capital Markets Day on March 18, 2021.
Our focus areas
We are positioning Nokia to lead in a changing world, says Pekka Lundmark, President and CEO of Nokia.
The world faces big problems: environmental issues, resource scarcity, inequality and stalling productivity. Technology will be an essential part of the solution. As a result, we will see an increase in critical networks, which will extend to all corners of society.
Critical networks are advanced networks that run mission-critical services for companies and societies. They are becoming increasingly important and extending to all corners of society. This means that Nokia's addressable market for critical networks with CSPs, webscales and enterprises is also extending.
Customers are using a best-of-breed approach to build these networks, selecting network elements from multiple individual vendors who are able to offer the best performance per total cost of ownership. Nokia is aiming to be the technology leader in the areas it chooses to play in.
We are well positioned to be a trusted partner for critical networks. We are experienced in creating both carrier-grade performance networks and working with the world's most demanding webscales. We have a strong position in technologies that are important for critical networks, such as open and virtualized radio access networks and we are on course for a 100% cloud-native software portfolio, says Lundmark.
Nokia also sees a market evolution where value in critical networks will gradually shift from monolithic systems towards silicon, software and services; where the importance of cloud-native and open solutions will increase; and where value will be captured through different business models.
We are one of the leading network equipment providers to evolve monolithic core networks to virtualized core networks that are fully cloud-native.
One of our focus areas will be to continue building out our capabilities in this area to ensure technology and market leadership. We are well positioned to pivot to new business models as our customers' needs evolve and require more as-a-service solutions, says Lundmark.
Continuing to strengthen Nokia's long-term research and global patent portfolio is a key element in securing technology leadership. Nokia's ambition is to lead in all domains including innovation, products, standardization and patents.
Committing to long-term investment in research and innovation will allow us to anticipate and capitalize on industry changes and position us at the front of the pack when new technology windows open.
Providing transparency to Nokia's four new business groups
Today, Nokia provided its assumptions for its four new business groups and Group Common and Other in 2021 and over the longer term. The company will discuss the addressable markets, competitive positions and strategic focus areas for each business group during its strategy webcast to analysts.
Nokia's previously provided outlook for 2020 and 2021 remains unchanged. In connection with its Q3 2020 results, Nokia expects comparable* operating margin of 7-10% in 2021.
Nokia intends to provide recast comparative segment results for 2020 by mid-March 2021 and more detailed information at its Capital Markets Day on March 18, 2021.
Mobile Networks' immediate focus will be on executing its turnaround and regaining 5G leadership. It will focus on leadership in ORAN and vRAN, maintaining scale with CSP customers and growing its enterprise-dedicated Private Wireless Networks business. It is expected to deliver comparable* operating margin of around zero percent in 2021, and significant improvement over the longer term.
Network Infrastructure (previously IP and Fixed Networks) will focus on the building blocks and essential solutions of critical networks, using its technology leadership in IP Networks, Optical Networks, Fixed Networks, and Alcatel Submarine Networks to drive digitalization across all industries. It is expected to deliver comparable* operating margin in the high single digit range in 2021, and gradual improvement over the longer term.
Cloud and Network Services creates value for both service providers and enterprise customers as demand for critical networks accelerates, leading the transition to cloud-native software and as-a-service delivery models. It is expected to deliver comparable* operating margin in the mid-single digit range in 2021, and significant improvement over the longer term.
Nokia Technologies will continue to monetize and grow the value of Nokia's intellectual property and licensing revenue by investing in innovation and its world-leading patent portfolio as well as pursuing other licensing opportunities.
Most recent headlines
09/11/2025
Dalet today announced a transformative leap forward for media operations: Agentic Artificial Intelligence (AI) that unifies the Dalet ecosystem under one natura...
15/10/2025
St. Louis Blues Pay Tribute to Ozzy Osbourne in New Pregame Open VideoThe NHL franchise worked with production firms 2WEI and 4th Floor CreativeBy Mark J Burns,...
15/10/2025
Cobalt Digital, G3DVu, Proxima Vision, and Telos Alliance Renew Premier Sponsors...
15/10/2025
By Paige Bethmann
Before my grandmother passed away in 2019, I went to visit her in the hospital where she'd been for a few weeks. When I arrived, the nurs...
15/10/2025
Two years ago, Spotify set out to grow the entire publishing industry by making ...
15/10/2025
People turn to DJ for a listening experience that feels personal, dynamic, and j...
15/10/2025
Las personas recurren a DJ para vivir una experiencia de escucha personal, din m...
15/10/2025
Rock legend Bruce Springsteen and luminary actor Jeremy Allen White came togethe...
15/10/2025
At Spotify, we're all about supporting rising talent and helping them connec...
15/10/2025
New SBS Documentary Series THE CANCER KILLERS Premieres 4 November on SBS & SBS ...
15/10/2025
SBS celebrates the Festivals of Lights with bold, illuminating stories across th...
15/10/2025
One of humanity's most profound questions continues: Is there any place in our galaxy suitable for life beyond Earth? NASA intends to find out, with the hel...
15/10/2025
eds3_5_jq(document).ready(function($) { $(#eds_sliderM519).chameleonSlider_2_1({ content_source:......
15/10/2025
Scality, a global leader in cyber-resilient storage software for the AI era, today announced the advancement of its comprehensive AI ecosystem certification pro...
15/10/2025
The Hollywood Professional Association (HPA) today unveiled key highlights of the 2026 HPA Tech Retreat, scheduled for Feb. 15 19 at the Westin Rancho Mirage Go...
15/10/2025
At NAB Show New York 2025 (Stand 244), Interra Systems will showcase the future of media QC, monitoring, and captioning, highlighting its award-winning, AI- and...
15/10/2025
Grass Valley today announced that RMC BFM, part of the CMA-CGM Group and France's third-largest private media group, has chosen Grass Valley's productio...
15/10/2025
Appear, the global leader in live production technology, will demonstrate how its powerful hardware and software innovations are shaping the future of hybrid, s...
15/10/2025
Rakim to Join Berklee's Hip-Hop Hall of Fame at Signature Series Concert The rap icon becomes the latest inductee, following luminaries such as Roxanne Sh...
15/10/2025
Berklee Brings Live Music to the Head of the Charles Student artists will perform on multiple riverfront stages during the 60th anniversary of the world's...
15/10/2025
CobbTV, the government access television channel for Cobb County, Ga. recently acquired an automated playout system from Pebble, a global provider of automation...
15/10/2025
OSLO, Norway Appear, the global leader in live production technology, will demonstrate how its powerful hardware and software innovations are shaping the future...
15/10/2025
NEW YORK The NBA is making major changes to the NBA App and NBA TV as it takes control of them from TNT Sports, which has long managed the league's digital ...
15/10/2025
SAN MATEO, Calif. In what promises to be a major expansion of interactive features and personalized content on the DirecTV platform, the operator and Glance hav...
15/10/2025
SAN JOSE, Calif. Roku has launched changes to its user interface (UI) that the streaming platform says will better showcase original programming on the platform...
15/10/2025
LOS ANGELES Software-defined data storage and data services provider OpenDrives has elevated Alex Dunfey to chief technology officer, responsible for driving th...
15/10/2025
Wednesday 15 October 2025
Nick Cave
JPEG (275 KB)
Explore the creative univer...
15/10/2025
Wednesday 15 October 2025
From breaking up with your partner to quitting your job - new polling shows some messages are just too scary to send
Over a fifth (...
15/10/2025
Rohde & Schwarz unveils compact MXO 3 oscilloscopes with 4 and 8 channels: Advan...
15/10/2025
Back to All News
Revenge Series The Resurrected' Captivates Audiences Across Asia
Entertainment
15 October 2025
GlobalTaiwan
Link copied to clipboard
...
15/10/2025
Back to All News
Bringing the Best in VFX and Virtual Production Together as Eyeline
Jeffrey Shapiro
CEO, Eyeline
Business
15 October 2025
GlobalCanadaInd...
15/10/2025
Deployed by Astound Business Solutions, Harmonic's Primary Distribution Solution Ensures Outstanding Video Quality and Seamless Ad Insertion at the Edge
SA...
15/10/2025
Collaboration extends a trusted relationship as RMC BFM invests in scalable, fut...
15/10/2025
Series coming in 2026 stars Tom Vaughan-Lawlor, Justine Mitchell and Jason O'Mara released today
RT today released first look images of new comedy-drama ...
14/10/2025
SVG Europe Summit 2025: All Sessions Now Available to Watch on SVG PLAYNetworking event that preceded IBC2025 shone a light on elite live sports innovation acro...
14/10/2025
SVG Sit-Down: Author Rich Podolsky on Writing Madden & Summerall: How They Revo...
14/10/2025
SVG All-Stars: Michael Reiners, Coordinating Producer, FloRacingThe Illinois State grad steers a vast schedule of motorsports events at tracks across the countr...
14/10/2025
Content protection: Getting the right management for your DRM By Neal Romanek
Friday, October 10, 2025 - 10:11
Print This Story
Eluvio power the EPCR'...
14/10/2025
As League Takes Over Ops, NBA TV and NBA App Add 60 Games, Weekday Studio Show, ...
14/10/2025
Time and effort: World's largest student-led broadcast prepares to go On Air...
14/10/2025
(L-R) Guest, Kimberly Robinson Jones, Geeta Gandbhir, Pamela Dias, and Takema Ro...
14/10/2025
Lossless ist jetzt mit Spotify Premium verf gbar.
Verlustfreies Audio war eine...
14/10/2025
La qualit Lossless est disponible sur Spotify Premium.
Le format sans perte de...
14/10/2025
For the seventh edition of Spotify and FC Barcelona's artist jersey series, ...
14/10/2025
Spotify is committed to bringing the best listening experience to all our users, and that includes parents and families. That's why we're expanding mana...
14/10/2025
Since its debut, the Spotify Original podcast Caso 63 has been more than just a story; it's been a cultural sensation. The science fiction thriller captivat...
14/10/2025
Desde su debut, el podcast original de Spotify Caso 63 ha sido mucho m s que una historia: se ha convertido en un fen meno cultural. Este thriller de ciencia fi...
14/10/2025
Premiumanv ndare f r en avisering i Spotify-appen.
Lossless-ljud har varit en av de mest efterl ngtade funktionerna p Spotify och nu, ntligen, har den b rjat...
14/10/2025
Early next year, your favorite video podcasts are getting a bigger stage. Spotify and Netflix are teaming up to bring sports, culture, lifestyle, and true crime...
Nokia provides a mid-point update on strategy and operating model 
