Siemens and Nokia to Join Telecom Equipment Businesses

by Bruce Stewart

In the latest consolidation in the telecom equipment market, Siemens and Nokia have announced their intentions to merge their respective telecom gear businesses into one. As Ken Camp observes, this is definitely big news. In a deal reportedly valued at $31.5 billion, Finnish Nokia and German Siemens will combine their telecom equipment businesses into a new company that will be called Nokia Siemens Networks, and will be located in Finland and headed up by Nokia's executive Simon Beresford-Wylie. The Wall St. Journal points out that one of the reasons driving these mergers is that European (and U.S.) telecom suppliers are feeling increasing competition from some of the more nimble Asian companies in this space, like Huawei and ZTE.

One question about the deal that seems to be on just about everyone's mind is what does this mean for Nortel, who has been rumored to be in talks with both Siemens and Nokia for quite some time. For some good analysis on this latest telecom mega-merger, click on over to IP Democracy, Mark Evans, and Om Malik.

1 Comments

Razor
2006-07-27 20:58:19
Nokia Siemens Networks but how does it play for the employees? More job cuts?? Siemens is not making much profits as it is for the moment, the merger may bring some good point overall, however the 10000 job cuts that was announced, is that a rumor?