Nokia completes video business sale to Volaris
Written by NTN staff
Nokia has completed the sale of its IP video business to the Canada’s Volaris Group for an undisclosed sum, following news of the divestment first announced in September.
Nokia’s product portfolio - including caching and streaming products, storage technology and stream personalisation software - will become part of an independent subsidiary within Volaris, a Canadian investment firm. The new “pure play streaming technology company” will be known as Velocix, taking the name of what was effectively a CDN business.
Unlike Cisco, Nokia will (like Ericson) remain a minority shareholder of Velocix and it will become a Global Channel Partner for the company. This, it says, will enable Nokia to continue to sell and support Velocix video solutions to customers such as Sky, a major client of the CDN services. Nokia will also keep the existing integration business to support existing customers.
Increasingly slim margins as video becomes more cloud and SaaS based have forced the Big 3 vendors to abandon their ambitions somewhat in this space. Nokia had also retreated from the VR scene in 2017 after pulling out of Ozo hardware.
Meanwhile, as part of a wider strategic reshuffle, Nokia has formed a new Access Networks Division to fully exploit the convergence opportunities of 5G. The new unit will comprise Nokia's current Mobile and Fixed Networks business groups, which came together on January 1 2019.
The heads of both groups will report into a new President of Access Networks, who has just been named as Sandra Motley. She was most recently the COO of the Fixed Networks group.