Nokia Siemens Network comes into force April 1

Nokia and Siemens confirmed their much anticipated network tie-up will commence global operations on April 1.

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By  Administrator Published  April 1, 2007

Nokia and Siemens confirmed their much anticipated network tie-up will commence global operations on April 1.

Officially named Nokia Siemens Networks, the company predicts that it will be the second largest company in the mobile infrastructure and services segment of the industry. In addition the it forecasts it will be the third largest telecoms infrastructure vendor in the global market behind Alcatel-Lucent and Ericsson-Marconi.

The company claims the consolidation will enable it to leverage the combined expertise of both Nokia and Siemens' R&D teams to develop innovative product platforms, as well as improve efficiency in offering its products and services to market.

"In the consolidating telecoms market Nokia Siemens Networks will offer customers cost-saving, leading-edge solutions that will also optimally meet their needs with regards to convergence," said Nokia CEO Olli-Pekka Kallasvuo.

The 50:50 venture will benefit from an initial investment of US$5.4 billion with Nokia and Siemens contributing US$2.2 billion and US$3.2 billion respectively.

"With the launch of Nokia Siemens Networks, a strong leader with excellent growth potential is entering the top league of the telecoms market. In taking this step, we are dramatically strengthening our market position and creating sustainable value," commented Klaus Kleinfeld, president and CEO of Siemens.

The vendor expects cost synergies of US$1.9 billion annually by 2010, deriving from consolidation, sourcing benefits, R&D development and the elimination of overlapping functions. The business will consist of six units: Radio Access; Service Core and Applications; Operation Support Systems; Broadband Access; IP/Transport; and Services.

The board of Nokia Siemens Networks will consist of seven members: Nokia president and CEO, Olli-Pekka Kallasvuo, will chair the board and Siemens CEO, Klaus Kleinfeld, will act as the vice-chair.

The board members include: head of Nokia operational human resources, Juha Äkräs; Siemens CFO, Joe Kaeser; member of the Siemens managing board, Eduardo Montes; head of Nokia Technology Platforms, Niklas Savander; and Nokia CFO, Rick Simonson.

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