Nokia-Siemens Merger

Nokia and Siemens have announced their intention to merge their respective mobile network equipment businesses into a new joint venture which will form the entity Nokia Siemens Networks. The two companies intend to be the global leader in providing fixed and mobile network infrastructure.

The combined company is positioned to lead the development and implementation of revenue-generating and cost-saving products and services via its scale and global reach. Nokia Siemens Networks will have one of the world’s best research and development teams with the ability to invest in next generation fixed and mobile product platforms and services. The new company will have a world-class fixed-mobile convergence capability, a complementary global base of customers, a deep presence in both developed and emerging markets, and one of the industry’s largest and most experienced service organizations.

We recall that Siemens has recently sold its mobile handset division to Taiwanese BenQ (formerly Acer). With the Nokia-Siemens joint venture looming in the horizon, I think Siemens is up for sharing pole position in the fierce competition among network equipment suppliers, of which Ericsson, Alcatel, Lucent, and other providers are part of.

As usual, joint ventures and mergers are great at streamlining product and process flows, and allowing for economies of scale for both parties. I would tend to think, though, that Nokia and Siemens should allow for a couple of years into the merger to reap the full efficiency benefits. As for us consumers, I don’t think we’ll see any changes anytime soon, especially since this doesn’t involve the usual merger for mass-market produts, but that for high-end network equipment. That is unless Siemens and Nokia get to develop and introduce uber-cool technology that will surpass current 3G standards soon.

June 19th, 2006 Posted by J. Angelo Racoma in News, Nokia, Siemens at 12:25 pm Comment Now! »
Related Posts:
BenQ to Remove Siemens Logo
Siemens SL75 Review
Siemens Add a Female Touch to the CL65 Mobile Phone
BenQ-Siemens Launch Three New Handsets
Nokia launches the Nokia N70 camera phone

No Comments »

No comments yet.

RSS feed for comments on this post. TrackBack URI

Leave a comment

 |