ICC lets ComEd delay smart meters until 2015

The Illinois Commerce Commission on Wednesday approved ComEd's request to delay the installation of smart meters until 2015 but said it will revisit the issue in April when the utility is scheduled to file a progress report on the program.

Under massive grid modernization legislation, ComEd was supposed to begin installing smart meters this year, but the ICC cut the funds ComEd was expecting to receive under the program and the utility said it could no longer afford to install the meters that quickly. The two sides are battling in court in a process that could take years.

An administrative law judge, as well as several consumer advocacy groups, had recommended the commission not accept the delay.

Jim Chilsen, spokesman for Citizens Utility Board, said a delay is not in the best interest of consumers. According to a ComEd commissioned analysis, the delay means consumers will miss out on approximately $187 million in savings that could come from the program over 20 years and will pay $5 million more for the smart meters. Chilsen said that CUB, which had urged the commission not to delay the program, will review the order once it becomes available and that it could seek to appeal the decision before the Illinois Appeals Court.

Other aspects of smart grid installation are under way, including "smart switches" used to automatically isolate outages and reroute power to customers. However, smart meters are the most consumer facing aspect smart grid and let the utility track on a computer what customers lack power and those who have had power restored.

Without the smart meters, customers must alert ComEd to an outage. Other parts of smart grid allow ComEd to see where the power is out in general.

The smart meters were a major component in ComEd's pitch to the state legislature for massive regulatory overhaul legislation that streamlines the rate-making processto give ComEd faster and more frequent rate hikes as it undertakes the multibillion-dollar grid modernization.

jwernau@tribune.com | Twitter @littlewern

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New Illinois pension fix floated by bipartisan group

SPRINGFIELD - As state government leaders struggle to reach agreement on pension reform, a bipartisan group of lawmakers is floating a plan that's a mix of new and old ideas to try to break the logjam.

State workers, teachers, university employees and legislators would have to kick in more money from their paychecks each year to underwrite their pensions, and some of them would have to wait longer to retire.

The plan also would rein in cost-of-living increases that have exponentially increased the pension burden on taxpayers and set a 30-year target date for fully funding the financially bedraggled systems.

Some rank-and-file lawmakers led by Democratic Reps. Elaine Nekritz of Northbrook and Dan Biss of Evanston, see the approach as a way forward and are scheduled to formally unveil it Wednesday.

Union members are disappointed that workers and retirees were excluded from the discussion, but hope the proposal would represent a starting point, said Anders Lindall, spokesman for the American Federation of State, County and Municipal Employees.

The proposal contains a version of the politically problematic shift of the state's costs for suburban and Downstate school teacher pensions onto local school districts over several years. That idea is pushed by House Speaker Michael Madigan, D-Chicago, but opponents have argued it would lead to property tax increases

Under the proposal, retirees would get an annual cost-of-living increase on only the first $25,000 of their pensions, $20,000 for those who also get Social Security.

Retirement ages would not rise for people 46 and older, but a phase-in would increase retirement ages by as much as five years for people 34 and under. Current retirement ages vary, such as 60 for rank-and-file state workers and 55 for prison guards.

Employee contributions would rise 1 percentage point the first year and another 1 percentage point the second year. Contributions for rank-and-file state workers now are about 7 percent, according to the union.

The proposal also would make it clear that a failure by public employers, such as the state or a school district, would be grounds for a lawsuit if they didn't make proper annual payments --- a major reason why many public retirement systems are underfunded.

New public school teachers and state university workers would be part of a cash-balance plan, sort of a hybrid between a plan that guarantees employees a certain benefit and also partly relies on investment returns.

The plan comes as Illinois faces a pension debt of as much as $96 billion, the worst in the nation. Democratic Gov. Pat Quinn has noted that increased pension payments in the coming years could cut into how much the state has left to spend on education and other government services.

rlong@tribune.com

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Huston’s “Infrared” wins Bad Sex fiction prize

LONDON (AP) — It’s the prize no author wants to win.

Award-winning novelist Nancy Huston won Britain’s Bad Sex in Fiction award Tuesday for her novel “Infrared,” whose tale of a photographer who takes pictures of her lovers during sex proved too revealing for the judges.

The choice was announced by “Downton Abbey” actress Samantha Bond during a ceremony at the Naval & Military Club in London.

Judges of the tongue-in-cheek prize — which is run by the Literary Review magazine — said they were struck by a description of “flesh, that archaic kingdom that brings forth tears and terrors, nightmares, babies and bedazzlements,” and by a long passage that builds to a climax of “undulating space.”

Huston, who lives in Paris, was not on hand to collect her prize. In a statement read by her publicist, the 59-year-old author said she hoped her victory would “incite thousands of British women to take close-up photos of their lovers’ bodies in all states of array and disarray.”

The Canada-born Huston, who writes in both French and English, is the author of more than a dozen novels, including “Plainsong” and “Fault Lines.” She has previously won France’s Prix Goncourt prize and was a finalist for Britain’s Orange Prize for fiction by women.

She is only the third woman to win the annual Bad Sex prize, founded in 1993 to name and shame authors of “crude, tasteless and … redundant passages of sexual description in contemporary novels.”

Some critics, however, have praised the sexual passages in “Infrared.” Shirley Whiteside in the Independent on Sunday newspaper said there were “none of the lazy cliches of pornography or the purple prose of modern romantic fiction” — though she conceded the book’s sex scenes were “more perfunctory than erotic.”

Huston beat finalists including previous winner Tom Wolfe — for his passage in “Back to Blood” describing “his big generative jockey” — and Booker Prize-nominated Nicola Barker, whose novel “The Yips” compares a woman to “a plump Bakewell pudding.”

Previous recipients of the dubious honor, usually accepted with good grace, include Sebastian Faulks, the late Norman Mailer and the late John Updike, who was awarded a Bad Sex lifetime achievement award in 2008.

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Online: http://www.literaryreview.co.uk

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Software Programs Help Doctors Diagnose, but Can’t Replace Them

SAN FRANCISCO — The man on stage had his audience of 600 mesmerized. Over the course of 45 minutes, the tension grew. Finally, the moment of truth arrived, and the room was silent with anticipation.

At last he spoke. “Lymphoma with secondary hemophagocytic syndrome,” he said. The crowd erupted in applause.

Professionals in every field revere their superstars, and in medicine the best diagnosticians are held in particularly high esteem. Dr. Gurpreet Dhaliwal, 39, a self-effacing associate professor of clinical medicine at the University of California, San Francisco, is considered one of the most skillful clinical diagnosticians in practice today.

The case Dr. Dhaliwal was presented, at a medical  conference last year, began with information that could have described hundreds of diseases: the patient had intermittent fevers, joint pain, and weight and appetite loss.

To observe him at work is like watching Steven Spielberg tackle a script or Rory McIlroy a golf course. He was given new information bit by bit — lab, imaging and biopsy results. Over the course of the session, he drew on an encyclopedic familiarity with thousands of syndromes. He deftly dismissed red herrings while picking up on clues that others might ignore, gradually homing in on the accurate diagnosis.

Just how special is Dr. Dhaliwal’s talent? More to the point, what can he do that a computer cannot? Will a computer ever successfully stand in for a skill that is based not simply on a vast fund of knowledge but also on more intangible factors like intuition?

The history of computer-assisted diagnostics is long and rich. In the 1970s, researchers at the University of Pittsburgh developed software to diagnose complex problems in general internal medicine; the project eventually resulted in a commercial program called Quick Medical Reference. Since the 1980s, Massachusetts General Hospital has been developing and refining DXplain, a program that provides a ranked list of clinical diagnoses from a set of symptoms and laboratory data.

And I.B.M., on the heels of its triumph last year with Watson, the Jeopardy-playing computer, is working on Watson for Healthcare.

In some ways, Dr. Dhaliwal’s diagnostic method is similar to that of another I.B.M. project: the Deep Blue chess program, which in 1996 trounced Garry Kasparov, the world’s best player at the time, to claim an unambiguous victory in the computer’s relentless march into the human domain.

Although lacking consciousness and a human’s intuition, Deep Blue had millions of moves memorized and could analyze as many each second. Dr. Dhaliwal does the diagnostic equivalent, though at human speed.

Since medical school, he has been an insatiable reader of case reports in medical journals, and case conferences from other hospitals. At work he occasionally uses a diagnostic checklist program called Isabel, just to make certain he hasn’t forgotten something. But the program has yet to offer a diagnosis that Dr. Dhaliwal missed.

Dr. Dhaliwal regularly receives cases from physicians who are stumped by a set of symptoms. At medical conferences, he is presented with one vexingly difficult case and is given 45 minutes to solve it. It is a medical high-wire act; doctors in the audience squirm as the set of facts gets more obscure and all the diagnoses they were considering are ruled out. After absorbing and processing scores of details, Dr. Dhaliwal must commit to a diagnosis. More often than not, he is right.

When working on a difficult case in front of an audience, Dr. Dhaliwal puts his entire thought process on display, with the goal of “elevating the stature of thinking,” he said. He believes this is becoming more important because physicians are being assessed on whether they gave the right medicine to a patient, or remembered to order a certain test.

Without such emphasis, physicians and training programs might forget the importance of having smart, thoughtful doctors. “Because in medicine,” Dr. Dhaliwal said, “thinking is our most important procedure.”

He added: “Getting better at diagnosis isn’t about figuring out if someone has one rare disease versus another. Getting better at diagnosis is as important to patient quality and safety as reducing medication errors, or eliminating wrong site surgery.”

Clinical Precision

Dr. Dhaliwal does half his clinical work on the wards of the San Francisco V. A. Medical Center, and the other half in its emergency department, where he often puzzles through multiple mysteries at a time.

One recent afternoon in the E.R., he was treating a 66-year-old man who was mentally unstable and uncooperative. He complained of hip pain, but routine lab work revealed that his kidneys weren’t working and his potassium was rising to a dangerous level, putting him in danger of an arrhythmia that could kill him — perhaps within hours. An ultrasound showed that his bladder was blocked.

There was work to be done: drain the bladder, correct the potassium level. It would have been easy to dismiss the hip pain as a distraction; it didn’t easily fit the picture. But Dr. Dhaliwal’s instinct is to hew to the ancient rule that physicians should try to come to a unifying diagnosis. In the end, everything — including the hip pain — was traced to metastatic prostate cancer.

“Things can shift very quickly in the emergency room,” Dr. Dhaliwal said. “One challenge of this, whether you use a computer or your brain, is deciding what’s signal and what’s noise.” Much of the time, it is his intuition that helps figure out which is which.

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United Dreamliner makes emergency landing in New Orleans

A brand-new United Airlines "Dreamliner" airplane bound for Newark was diverted Tuesday morning, making an emergency landing in New Orleans because of an undisclosed mechanical problem.

The highly acclaimed Boeing 787 Dreamliner recently began service in North America in a debut last month with United Airlines. United and Boeing are both based in Chicago.

On Tuesday, the 7:30 a.m. United flight 1146 from Houston to Newark was diverted to Louis Armstrong New Orleans International Airport and landed safely there at 9:25 a.m., the airline said. The plane, the third delivered to United recently, carried 174 customers and 10 crew members. Neither United nor Boeing would describe the problem except to say it was a "mechanical issue."

"We are reaccommodating the customers on a different aircraft to Newark," United said in a statement. "United will work with Boeing to review the diversion and determine the cause."

The Federal Aviation Administration "is looking into it," an FAA spokesman said.

Flights can be diverted for many reasons, from serious problems to a simple malfunction of a cockpit warning light. And flight diversions are not exceptionally uncommon. There were 816 diversions among large U.S. carriers in September alone and double that number in July, for example, according to federal statistics.

The 787 Dreamliner, a new-model aircraft that features greater passenger comforts and fuel efficiency compared with similar planes, is a big deal for both United and Boeing and has been highly touted by both the airline and the aircraft-maker.

However, any hint of a problem with a 787 is noticed. The plane has gotten mostly rave reviews, but is being delivered more than three years late because of design and production problems. The Dreamliner is different because instead of being made mostly of metal, half the plane, including the fuselage and wings, is made of strong, light composite materials.

gkarp@tribune.com

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Daley nephew indicted in '04 death of David Koschman

Chicago Tribune reporter Jason Meisner talks about how a Cook County grand jury indicted former Mayor Richard Daley's nephew on a charge of involuntary manslaughter in the death of David Koschman.

A special Cook County grand jury indicted former Mayor Richard Daley's nephew on a charge of involuntary manslaughter in the death of David Koschman in a drunken confrontation on the city’s Near North Side, the special prosecutor said today.

The grand jury found that Richard J. Vanecko "recklessly performed acts which were likely to cause death or great bodily harm to another" in Koschman’s death in 2004, according to the indictment.

Koschman, 21, had been drinking in the Rush Street nightlife district early on April 25 2004 when he and friends quarreled with a group that included Vanecko. During the altercation, Koschman was knocked to the street, hitting the back of his head. He died 11 days later.

Former U.S. Attorney Dan Webb, appointed special prosecutor in the case last spring, noted that at 6-foot-3 and 230 pounds, Vanecko towered over Koschman, who was 5-foot-5 and 125 pounds. There is no statute of limitations on a charge of involuntary manslaughter.

Koschman’s mother, Nanci Koschman, told a news conference that she planned to visit her son's grave and "I'm going to tell David tomorrow that he can finally have peace."

She said she refused to believe, over the years, that the fight was her son's fault, as detectives had told her. "You have to find the strength to go on," Koschman said. "I wanted his name cleared."

Koschman said she never sought vengeance, but accountability. "I want to thank the grand jury," she said. But she added, "It doesn't bring David back. And that's all I wanted."

Vanecko’s attorneys issued a statement saying they were disappointed by the indictment. According to the lawyers, Koschman’s blood-alcohol content was nearly three times the .08 legal limit for motorists – though he was on foot at the time of the confrontation.

Koschman “was clearly acting in an unprovoked, physically aggressive manner,” Vaneckos’ legal team said. “We are confident that when all the facts are aired in a court of law, the trier of fact will find Mr. Vanecko not guilty.”

Vanecko’s lawyers defended the work of police and prosecutors, saying “these agencies professionally investigate these types of incidents on a daily basis.”

“These decisions were not because of favoritism but because the facts did not warrant felony charges,” the lawyers said.

Vanecko, who currently lives in California, is expected to appear for arraignment at 9:30 a.m. Monday at the Leighton Criminal Court Building at 26th Street and California Avenue. Plans call for him to post $10,000 cash bond and be released pending trial. He faces 2 to 5 years in prison, or probation, if convicted of involuntary manslaughter.

Lawyers for Koschman’s mother sought a special prosecutor last year after an investigative series by the Chicago Sun-Times raised questions about whether police and prosecutors intentionally concealed evidence for political reasons.

In a statement released this afternoon, Webb said the grand jury continues “at a vigorous pace” to look into how authorities handled their investigation of Koschman’s death.

Locke Bowman, an attorney with Northwestern University's MacArthur Justice Center who represents Nanci Koschman, said he was encouraged that the investigation was continuing.

"Why has this taken so long?" he asked, wondering if the the clout of the powerful Daley family was at work. "Clearly, we need to have answers."

Webb said thousands of documents have been reviewed and more than 50 witnesses interviewed so far in the seven-month investigation.

Among the  issues Webb was tasked to sort out were whether clout tainted the original investigation in addition to whether Vanecko, now 38, should be charged criminally in connection with the death.

Judge Michael Toomin took the rare step of appointing Webb as a special prosecutor in April after concluding that Chicago police and county prosecutors mishandled the investigation.

The charges mark a dramatic twist in a case that seemed to fizzle out in 2004 as the investigation went nowhere.

Police initially said that witnesses gave conflicting accounts of what occurred and some claimed Koschman was the aggressor in the confrontation.

Almost two weeks after Koschman died of his injuries, a top prosecutor in the Cook County state’s attorney’s office was called to the Belmont Area headquarters on the day detectives put Vanecko in several lineups, all of which police said ended with witnesses failing to identify him as the assailant.

Vanecko had come to the station with his attorney, Terence Gillespie, who told police his client would not answer questions.

Dan Kirk, chief of staff for current State’s Attorney Anita Alvarez told the Tribune in an interview earlier this year that there was no admissible evidence that could have been used to file charges at the time.

Kirk said police had no positive identification from any of the lineups they conducted, no statements from the main suspect, no statement from the victim and no physical evidence.

jmeisner@tribune.com

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Additional copies of ‘Lincoln’ headed to theaters

LOS ANGELES (AP) — “Lincoln” is marching to more movie theaters.

Disney, which distributed the DreamWorks film, is making additional prints of director Steven Spielberg‘s historical saga starring Daniel Day-Lewis to meet an unexpected demand that has left some moviegoers in Alaska out in the cold.

“To say that we’re encouraged by the results to date or that they’ve exceeded our expectations is an understatement,” said Dave Hollis, head of distribution at the Walt Disney Co. “We’re in the midst of making additional prints to accommodate demand and will have them available to our partners in exhibition by mid-December for what we hope will be a great run through the holiday and awards corridor.”

The film, which opened in wide release Nov. 9 and has earned $ 83.6 million in North America so far, has been unavailable at some smaller venues, such as the Gross Alaska theaters in Juneau.

But the extra prints are coming a little too late to fit the movie into the five-screen Glacier Cinemas theater during the holiday season, said Kenny Solomon-Gross, general manager of the Gross Alaska, which runs two theaters in Juneau and one in Ketchikan, Alaska.

“When we had the room for ‘Lincoln,’ Disney didn’t have a copy for us,” Solomon-Gross said Monday.

His film lineup is pretty booked through the end of the year, and he probably can’t screen “Lincoln” until after the first of the new year. Yes, the excitement over the film will have dimmed, but then the Academy Awards season will be stirring up, he said. That should kick up the buzz.

In the meantime, Solomon-Gross plans to head to Las Vegas this week and catch the film there.

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Follow AP Entertainment Writer Derrik J. Lang on Twitter at http://www.twitter.com/derrikjlang . Associated Press writer Rachel D’Oro in Anchorage, Alaska, contributed to this report.

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Online:

http://www.thelincolnmovie.com

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Global Update: GlaxoSmithKline Tops Access to Medicines Index

Sang Tan/Associated Press

GlaxoSmithKline hung on to its perennial top spot in the new Access to Medicines Index released last week, but its competitors are closing in.

Every two years, the index ranks the world’s top 20 pharmaceutical companies based on how readily they get medicines they hold patents on to the world’s poor, how much research they do on tropical diseases, how ethically they conduct clinical trials in poor countries, and similar issues.

Johnson & Johnson shot up to second place, while AstraZeneca fell to 16th from 7th. AstraZeneca has had major management shake-ups. It did not do less, but the industry is improving so rapidly that others outscored it, the report said.

The index was greeted with skepticism by some drugmakers when it was introduced in 2008. But now 19 of the 20 companies have a board member or subcommittee tracking how well they do at what the index measures, said David Sampson, the chief author.

The one exception was a Japanese company. As before, Japanese drugmakers ranked at or near the index’s bottom, and European companies clustered near the top. Generic companies — most of them Indian — that export to poor countries are ranked separately.

Johnson & Johnson moved up because it created an access team, disclosed more and bought Crucell, a vaccine company.

The foundation that creates the index now has enough money to continue for five more years, said its founder, Wim Leereveld, a former pharmaceutical executive.

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Heat is on Groupon's Andrew Mason

In June 2011, Groupon Inc. Chief Executive Andrew Mason took the stage at a conference hosted by influential technology blog AllThingsD.

When co-executive editor Kara Swisher asked him whether an initial public offering was coming soon, he shot her what she later dubbed his "death stare."

The audience laughed and broke into applause.

The tone was decidedly more subdued last week, when Mason found himself at another tech industry confab, fielding questions from Business Insider's Henry Blodget, this time about whether Groupon's directors were going to fire him at their meeting the next day. AllThingsD had reported a day earlier, citing anonymous sources, that Groupon's board of directors was considering replacing Mason with a more experienced CEO to lead the Chicago-based daily deal company's turnaround.

The contrast between those two appearances underscores the swift and dramatic tumble of Mason's standing in tech and business circles within a few years. The young founder and CEO graced the cover of Forbes in 2010 and was named Ernst & Young's National Entrepreneur of the Year in the "emerging" category a year later.

Those accolades are a far cry from the cloud hanging over Mason, 32, and the company he launched four years ago. The leak to AllThingsD appeared to be deliberately timed to embarrass the executive, forcing him to field questions about his own competence at a scheduled appearance. This public hint of internal strife has fueled speculation around Mason's fate even as other public tech companies, such as Facebook and social game-maker Zynga, have also seen their stock prices drop since their IPOs.

Groupon's board met Thursday and took no action on the CEO's job, with company spokesman Paul Taaffe saying the board and management were "working together with their heads down to achieve Groupon's objectives."

Markets, however, seemed unconvinced. Groupon's beleaguered stock closed slightly higher Thursday but dropped 8.7 percent to $4.14 Friday. Shares debuted at $20 in November 2011.

Investors "want experience in leadership," said Raman Chadha, a clinical professor at DePaul University and co-founder of the Junto Institute for Entrepreneurial Leadership, a training program for startup founders. "And as a result, where Andrew's background was cool and sexy — and maybe even bordering on amusing — when Groupon was a pure startup, that's in the mindset of those of us who are observers and supporters … and fellow entrepreneurs. I think in the minds of the investor community and Wall Street, (it's different) because now the company has a lot more to lose. And if it's going to fall, it's going to fall really hard and really far."

For Chadha, Mason's unconventional pedigree as a music major-turned-startup-founder was part of the appealing, media-friendly story of Groupon's origin. The company was launched as recession-weary consumers were eager for deals, and it achieved rapid growth while earning a reputation for antics like decorating a conference room in the style of a fictional, possibly deranged tenant of Groupon's headquarters who had lived there before the startup moved into the offices.

The scrutiny of Groupon was tremendous given the "high-flying" nature of the company, said David Larcker, a corporate governance expert at the Stanford Graduate School of Business.

"You have a founder as CEO," he said. "He's the public face of the company. He has set the culture. All of that stuff."

That culture, driven in large part by Mason, turned from a lovable quirk to a major liability as the company ran into controversy over its poorly received Super Bowl ads in February 2011 and a series of missteps in the run-up to its IPO. Then, within months of its public debut, it disclosed an accounting flaw that forced it to restate financial results.

The larger question surrounding Groupon is the long-term viability of its basic business model. The company has been expanding offerings beyond its core daily deals, which have seen growth rates tail off. It's also dealing with a recession in the key European market as well as continued competition in the U.S.

But the biggest challenge facing Mason now is probably his own performance, or rather the perception that he isn't up to the task of running the global, publicly traded business worth billions that he founded but that now needs a turnaround. The stock is down 80 percent from its IPO price.

"It's an oft-told, oft-expected story that the genius entrepreneur steps aside when he or she succeeds at building a company big enough to need an experienced CEO," said Erik Gordon, a business professor at the University of Michigan.

The example Gordon and others cite is Google, which flourished after its co-founders Larry Page and Sergey Brin made way for a more seasoned executive in Eric Schmidt.

"The Google guys did it, and the results were spectacular," Gordon said.

Chadha said many startups tend to become more corporate in outlook, and less quirky, as they grow, because they bring in experienced executives from large companies that may have difficulty adapting to an entrepreneurial culture or reject it outright as not professional enough.

"I think that's where Google is very different," Chadha said. "(The company) sought out entrepreneurial, startup types — people that became part of their management team." That free-form element of Google's culture comes out in such things as the Google doodles — the offbeat tributes to notable anniversaries or famous people that pop up on the main search page.

Mason has acknowledged areas where Groupon needs to improve and has hired senior executives with experience at more mature tech companies. That hasn't always worked either. Margo Georgiadis, who came from Google as chief operating officer, returned to that company after five months.

Whether there's still room for Mason on the top management team remains to be seen. He was direct in his interview last week with Blodget, offering a minimum of jokes as he focused on discussing the job he and others at Groupon must accomplish.

"I care far more about the success of the business than I care about my role as CEO," he said.

A year ago, when he spoke to author Frank Sennett for his book "Groupon's Biggest Deal Ever," Mason was unapologetic about his management style.

"You only live once, and all I'm doing is being myself," he told Sennett. "I think a normal CEO is trying to appear in some way that's not actually them. That's probably not what they're like."

In the same book, former President and Chief Operating Officer Rob Solomon offered this blunt assessment of his ex-boss: "Andrew at thirty-five and forty is going to hate Andrew at twenty-nine and thirty; I guarantee it."

Melissa Harris and Bloomberg News contributed.

wawong@tribune.com

Twitter @VelocityWong

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Nokia Siemens to sell optical networks unit

FRANKFURT (Reuters) – Mobile telecoms equipment joint venture Nokia Siemens Networks, which is focusing on its core business, is to sell its optical fiber unit to Marlin Equity Partners for an undisclosed sum.

Up to 1,900 employees, mainly in Germany and Portugal, will be transferred to the new company, NSN said on Monday.

The company, owned by Nokia and Siemens, has sold a number of product lines since it last year announced plans to divest non-core assets and cut 17,000 jobs, nearly a quarter of its total workforce.

Nordea Markets analyst Sami Sarkamies said he expected more divestments after the optical unit deal. This disposal was a small surprise, he said, because NSN needed some optical technology – where data is transmitted by pulses of light – for its main mobile broadband business.

The move may hint the company is preparing itself for further consolidation in the sector by cutting overlaps with other players, Sarkamies said.

The telecom equipment market is going through rough times with stiff competition. French Alcatel-Lucent is also cutting costs.

($ 1 = 0.7689 euro)

(Reporting by Harro ten Wold; Editing by Greg Mahlich and Dan Lalor)

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