Nokia Siemens Networks created as big infrastructure players merge
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Published:
Week 25
June 2006 -
Image Source:
Nokia Siemens Networks
News:
Nokia and Siemens announced that they are to merge their respective infrastructure businesses in a 50/50 joint venture. The combined company becomes the third biggest player in this space behind Ericsson / Marconi and Alcatel / Lucent) and the second largest in mobile networks behind Ericsson.
The new company will deliver infrastructure for both fixed and mobile networks which currently accounts for 22 percent and 78 percent of the business respectively.
The company expects to make cost savings of at least €1.5bn by 2010 and there will be job losses (approximately 10 to 15 percent reduction in the first two years) as the two companies merge.
Interestingly the company will be headquartered in Finland and led by the existing head of Nokia Networks (Simon Beresford Wylie) despite the fact that Nokia is currently only contributing around 40 percent of total revenues.
