Nokia to re-license handset brand The Nokia name is to reappear on smartphones, following a decision by the telecoms group to license its brand to other mobile device makers. The Finnish group, which once dominated the handset industry, said it intended to enter into licensing agreements once Microsoft's right to its phone brand expires - but will not return to manufacturing itself. Microsoft, which bought Nokia's handset business last year, has the rights to use the name on smartphones until 2016. However, last month, the US technology giant said it intended to drop the Nokia name from all of its smartphones. Nokia wants the new smartphones that will carry its logo under licence to be indistinguishable from former Nokia-built devices. The group is already talking to handset makers about licensing deals. Nokia has reported a marked improvement in its financial performance over recent months, achieving its first year-on-year sales increase for more than three years in the third quarter. Its remaining telecoms equipment business has done well on the back of lucrative mobile broadband sales and strong gains in the North American market. However, shares in the company fell more than 3 per cent on Friday, even after it lifted profit guidance for its core telecoms network business. Nokia said it was targeting a long-term operating margin of between 8 and 11 per cent, up from a previous range of 5 to 10 per cent. Its network unit, which is the third-largest maker of mobile telecoms equipment, including 3G and 4G networks, accounts for almost 90 per cent of revenue. Its mapping business, called "Here," and a unit that oversees smartphone patents, contribute the rest. One analyst suggested that investors had been disappointed by the lack of detail on future profit potential. "The presentations were very light, they have nothing to say," claimed Pierre Ferragu at Bernstein. Investors realise the network business is at peak margin and won't grow much. The Here mapping business is not a strategic asset any more and is a minimal contributor to earnings, so the only upside is IP licensing. Rajeev Suri, Nokia's chief executive, responded to rumours that it could sell its Here unit by saying that the company saw the value in keeping all three parts of its business, given the prospect of synergies and chance to make them more efficient. In response to speculation that Nokia could merge with French rival Alcatel-Lucent, he said the group would continue to focus on "bolt-on acquisitions" although he added that the company would look at any assets that made sense.