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Print 10 comment(s) - last by Hare.. on Jun 20 at 3:56 AM

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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By TomZ on 6/19/2006 1:03:52 PM , Rating: 3
You are not reading the original version of the article that was published this morning. The earlier version of the article, if I remember right, talked about merging the "mobile communication" groups or something like that. When I first read it, I was under the same impression that they were talking about mobile phone groups.

If you don't agree with the relevancy of someone else's comments, I would respectfully suggest you click on the "Not Worth Reading" link, instead of making such a big deal about it with additional posts, etc., especially when you have no way of telling if an article was revised prior to your reading it.

Also remember the law of public forums: Most attempts to make someone look like an ass just result in making yourself look like an ass.


By PT2006 on 6/19/2006 5:51:41 PM , Rating: 2
quote:
Also remember the law of public forums: Most attempts to make someone look like an ass just result in making yourself look like an ass.

Double true if Masher2 is a registered forum member:
http://dailytech.com/CommentUser.aspx?user=194800


By TomZ on 6/19/2006 9:00:47 PM , Rating: 2
Not sure the point of that statement.


By alexcurpas on 6/20/2006 2:26:10 AM , Rating: 2
I don't know what you're talking about, this is big news, definitelly worth reading, this is bigger than the Alcatel-Lucent merger in my oppinion. However, I don't know what you mean by "original version of the article", I checked today again and it's still about cell phones, while the merger in question is about communication infrastructure, not cells. This is not another Sony-Ericsson type joint venture.


By Hare on 6/20/2006 3:56:28 AM , Rating: 2
This news war originally written as if Nokia an Siemens were joining their mobile phone divisions and would be designing new mobilephones together.


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