Nokia Siemens Networks Enhances its End-to-End Energy Solutions Offering

| Feb 8, 2011 | Telecom Vendor Services | Analyst: Jeff Ogle

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Event Summary

February 7, 2011 – Nokia Siemens Networks announced Managed Energy Services, an enhancement to its End-to End Energy Solutions offering designed to help operators ensure network availability, reduce the carbon footprint and lower overall energy costs. Energy consumption in operator’s networks accounts for 86% of the total energy consumed by a typical mobile operator or 10-30% of network operating costs. Managed Energy Services offers four stream or tracks each targeted towards a specific operational need, Service offerings include: Products, Solutions, Multivendor and Operational Services, the consultancy include Smart Procurement and a Green Incentive.

Quick Take

Analytical Summary

• Current Perspective: Positive on Nokia Siemens Networks adding Managed Energy Services because it provides four specific and targeted service offerings, that all provide OpEx energy savings and one includes CapEx incentives, under its existing End-to-End Energy Services portfolio. These services cover energy use and power monitoring of the equipment used either site or at the network level, operational and facilitation services and consultation services all individually productized. They have the potential to save an operator considerable money over the network’s lifecycle, but are not beyond the capabilities of most organizations.

• Vendor Importance: High to Nokia Siemens Networks, because it needs to both differentiate itself from the pack and show specific areas of technical expertise that a service provider or mobile operator can benefit by using. Adding these four new Managed Energy Service product offerings that are either operational or consultancy-oriented helps to accomplish this by demonstrating how NSN is evolving its service offering to better address the operational needs and problems of operators ahead of its competitors.

• Market Impact: Moderate on the telecom infrastructure services market, because the new services will help to quantify and raise market awareness of the importance of managing energy consumption as a recurring OpEx expense and throughout the lifecycle of the entire network. Although the categories of the service offering make sense intuitively, the benefits in terms of quantified savings are not provided or known at this time, making the value somewhat indeterminate and potentially slowing customer uptake.

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Current Perspective

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