FRANKFURT Dec 4 A service unit of Nokia Siemens
Networks (NSN) in Germany faces closure after losing a
contract with its biggest customer, German daily newspaper
Sueddeutsche Zeitung reported.
The newspaper cited company sources as saying workers at NSN
Services would be told in a meeting on Wednesday that Deutsche
Telekom has cancelled its contract with the
Nuremberg-based company effective at the end of the month.
The newspaper said talks for a new contract have failed.
Without the income from Deutsche Telekom, NSN Services will have
to shut down at the end of 2013, affecting 1,000 jobs, it said.
NSN declined to comment. Telephone calls to Deutsche Telekom
late on Monday were not answered.
NSN, a 50-50 joint venture between Nokia Oyj and
Siemens AG, is carrying out a cost-cutting plan,
which includes laying off a quarter of its staff and selling
product lines to focus on mobile broadband.
On Monday, it said it was selling its optical fibre unit to
Marlin Equity Partners, resulting in the transfer of up to 1,900
employees, mainly in Germany and Portugal.
(Reporting by Maria Sheahan and Tarmo Virki; Editing by Bob