Why has Nokia sold its mobile TV unit to Wipro Technologies? (Analysis)

The multinational communications corporation based in Espoo, Finland – Nokia Corporation has sold its enterprise mobile TV unit to the Bangalore, Karnataka based Wipro Technologies to focus on consumer software solutions.

Offering reason for why enterprise mobile TV unit has been sold to Wipro, Nokia said, "We wanted to focus on the consumer side of things rather than on the business-to-business side.”

It is little surprising that Nokia has sold its mobile TV unit to Wipro at the time when Mobile TV and on-demand video are growing in popularity among mobile phone users. They are increasingly becoming popular because they provide a slew of entertaining features.

There were 40 professionals working for developing the software and hardware in the Nokia Mobile Broadcast Solutions unit, helping the Mobile TV technology to locate and access data from a broadcasting network.
 
The Nokia Mobile Broadcasting Solution has been offering commercial mobile TV service using the current TV content with less impact to the existing products. It has also been providing training, integration, maintenance, implementation and support for commercial mobile TV services to consumers.

However, analysts are saying that the deal between the two companies is not of much importance and interest. According to analysts, the deal is not significant as the majority of network operators are toady looking to offer 3G services.

So, the Indian  IT company operating in the areas of information technology, lighting, healthcare, engineering and consumer care, Wipro has not gained much out of the deal. However, Nokia and Wipro have not disclosed the value and terms of the transaction yet.

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