Nokia completes Comptel acquisition, creates dedicated Chinese OTT unit

Nokia has completed a major part of its standalone software business strategy and is embarking on a new one to help Chinese internet companies expand overseas.

While Nokia is hardly alone in identifying software as a key area of diversification for companies, it does stand out in deciding to make that part semi-autonomous from the rest of the business. Nokia will throw much of its existing software operations into the new unit created by the Comptel acquisition to create a significant BSS/OSS player.

“Comptel bolsters Nokia’s software portfolio by adding capabilities that help digital service providers bring new communications services to market faster, master the orchestration of services and order flows, capture data-in-motion and refine decision-making,” said the announcement.

Having finished off that piece of diversification business Nokia moved swiftly on to the massive Chinese market, with the creation of a special unit designed to help domestic internet giants expand overseas.

Chinese companies don’t have a great track record when it comes to international expansion with, ironically, Nokia rival Huawei one of the notable exceptions. One of the reasons for this is cultural – both in terms of business practice and things like branding – and Nokia might fancy its chances to help overcome these better than Huawei.

The unit will be headed up by Chief Strategy Officer Kathrin Buvac and be part of Nokia’s strategy organization. It will focus on areas like data centers, cloud, IP routing, transport and services, as well as emerging technologies like edge computing and AI. “The creation of the unit supports Nokia’s strategy of expanding its business beyond its core communication service provider market,” said the announcement.