Nokia Arm to Build Security Center in Berlin - Analyst Blog

Nokia Corporation's NOK business arm, Nokia Solutions and Networks (“NSN”), has recently decided to set up a Mobile Broadband Security Center in Berlin, which will start functioning from the third quarter of fiscal 2014.

The new Mobile Broadband Security Center will be in NSN office premises in Berlin, thereby providing complete security testing facility for multi-vendor mobile broadband environments. Moreover, it will allow NSN and its associates to create threat scenarios and evaluate security solutions in the center.

NSN believes that the importance of rnd user security is gaining significant traction globally as mobile communications are vulnerable to security threats. In addition, Germany is facing NSA spying issues which can be a reason behind positioning the security testing centre in the nation.

Berlin was a strategic choice for NSN's security center since Germany is one of the popular destinations to offer high quality telecom security and privacy protection.

Recently, the company also unveiled a security solution for customers to help protect handsets from malware without any anti-virus software.

In the recently concluded fourth quarter of 2014, the NSN segment reported revenues of nearly $4.2 billion, down 22% year over year. However, we expect the scenario to change in the upcoming quarter as the company continues to win contracts from large carriers like VimpelCom Ltd. VIP and Chunghwa Telecom Co. Ltd. CHT.

Nokia has decided to divest its core mobile handset and its services division to Microsoft Corp. MSFT. The deal is expected to close in the first quarter of 2014. Post the divestiture, Nokia Solutions and Networks will become the company's chief business division.

Nokia currently carries a Zacks Rank #2 (Buy).