Nokia will not be forming the new CDMA device company with SANYO it preliminarily announced back on 14 February 2006. The company decided not to pursue its earlier plan as it concluded the terms and conditions of the proposed partnership were not satisfactory and in the best interests of Nokia's long term success.
Nokia says that in addition to an already financially prohibitive CDMA ecosystem in general, recent developments may indicate that the CDMA emerging markets business case is looking more challenging.
The handset manufacturer intends to selectively participate in key CDMA markets, with special focus on North America. Nokia plans to ramp down its own CDMA R&D and manufacturing by April 2007.
The company's preliminary estimate for the planned restructuring charge is EUR 150 million in the third quarter 2006. Nokia expects that the result of the planned restructuring of the CDMA business would have a positive impact on Nokia operating margins.