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Say hello to Nokia Siemens Networks

Nokia Corporation and Siemens AG have just announced a merger between the network solution divisions of the respective companies. The new company will be called Nokia Siemens Networks and is a 50-50 joint venture between the communications service provider businesses of Nokia and Siemens. Such a company will have an expected annual revenue of $20B USD.

Nokia has traditionally held the largest market share in the mobile phone industry, with Siemens holding a distant 5th or 6th.  Motorola, Samsung, LG and Sony Ericsson compose the rest of the top tier cell phone providers.  BenQ, a recent major play in the cell phone industry, acquired Siemens's handset division recently as well.  Both companies have recently branched out into the hiptop and PDA market, the new company will almost exclusively sell new devices for wireless convergence products -- a market that few of the other cell phone providers have scratched yet.  Nokia's strong presence in the convergence market has paved the way for such devices as the N-770, currently slated to become the Google hiptop of choice.

Siemens and Nokia put out the following bullet points about the merger:
  • Companies form Nokia Siemens Networks with 2005 calendar year pro forma revenues of EUR 15.8 billion.
  • 50-50 joint venture to consist of Nokia’s Networks Business Group and Siemens’ carrier-related operations for fixed and mobile networks.
  • Broad scale advantages, leading ‘quadruple play’ product portfolio and worldwide presence.
    Market strength and leading position in fixed-mobile convergence.
  • Estimated cost synergies of EUR 1.5 billion annually by 2010.
  • Simon Beresford-Wylie to become chief executive officer and Peter Schönhofer to become chief financial officer.
Siemens has been relatively quiet lately with very few new product announcements unlike Nokia which seems to announce new products every other month. It is too early to predict what Nokia Siemens Networks has in store for its customers but most likely any new 3G compatible mobile devices will be powered by ATI.


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Nokia Siemens Networks does not make mobile phones
By Shadx on 6/19/2006 6:24:48 AM , Rating: 2
The two merged companies are not developing mobile phones like the news text hints. The new Nokia Siemens Networks is all about network solutions.

A quote from their press realease:
quote:
"The company’s portfolio will include Next Generation Network convergence products like IMS (IP Multimedia Subsystem), 2G GSM/EDGE access (Enhanced Data rates for GSM Evolution), 3G WCDMA/HSDPA access (Wideband Code Division Multiple Access/High Speed Downlink Packet Access), extensive mobile core, fixed broadband, transport, IPTV (Internet Protocol Television), LTE (Long Term Evolution), WiMAX (Worldwide Interoperability for Microwave Access) and low-cost mobile voice products tailored for emerging market operators."




By PT2006 on 6/19/2006 6:35:26 AM , Rating: 2
quote:
BenQ, a recent major play in the cell phone industry, acquired Siemens's handset division recently as well.

Since Siemens doesn't have a mobile phone division i really didn't think they were going to get back into the game.


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