Nokia's Gross Margin On Network Services Around 25% - Executive

STOCKHOLM -(Dow Jones)- Nokia Corp.'s (NOK) network services unit is seeing gross margins of around 25% to 26%, Executive Vice President Simon Beresford-Wylie told investors in a Web cast conference Thursday.

"That still allows us to get acceptable operating margins," Beresford-Wylie said, adding that gross margins vary greatly between different types of services.

He added Nokia's growing services business enables the company to build stronger ties with customers, which in turn generates telecom equipment sales.

Beresford-Wylie said the services business had traditionally been around 20% of revenues at the Networks unit, but that the share is now growing.

-By Magnus Hansson, Dow Jones Newswires; +46 8 545 130 91, magnus.hansson@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 8th September 2005