Nokia and Siemens connect

The confirmation came at this year’s 3GSM event where the 50:50 joint venture officially unveiled its branding campaign and brand name: Nokia Siemens Networks.

  • E-Mail
By  Christopher Reynolds Published  February 19, 2007

Nokia and Siemens have announced that the planned merger of their network businesses is on course to close by the end of first quarter 2007. The confirmation came at this year’s 3GSM event where the 50:50 joint venture officially unveiled its branding campaign and brand name: Nokia Siemens Networks. The vendor’s proposed portfolio plan encompasses six business units: Radio Access; Service Core and Applications; Operation Support Systems; Broadband Access; IP/Transport; and Services. CEO designate, Simon Beresford-Wylie, also announced the signing of a MoU with NEC Corporation, which will see the two enterprises co-operate in the realm of WCDMA radio network technology. NEC will provide Nokia Siemens Networks support for the development of its WCDMA radio access installed base and will aid the telecommunications vendor in the enhancement in other 3G technology areas such as Long Term Evolution. Speaking at 3GSM Beresford-Wylie stressed the importance of consolidation in the vendor industry in order to drive towards the goal of 5 billion ‘always on’ broadband users connected by 2015. “In 2015, we will live in a broadband-IP world, in which 5 billion people in practice will be always on, connected to the internet, rich content, services and each other. While Nokia Siemens Networks will have the scale to compete, we know that is just a starting point. As the world of telecommunications changes, we will also create customer value through innovation, speed and deep end-user insight,” he said. Based on current market share figures, Nokia Siemens Networks predicts it will be the second largest company in mobile infrastructure, the second largest in services, the third in fixed infrastructure and, overall, the third largest telecommunications infrastructure vendor in the global market - behind Alcatel-Lucent in first place and Ericsson-Marconi in second. The combined Nokia Siemens Networks had pro forma annual revenues of US$20.7 billion in 2006, according to a released statement, and estimates to begin operations with 60,000 employees. 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.

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code