Nokia, Siemens merge network units
The result will be a 50-50 joint venture called Nokia Siemens Networks, which will provide a range of fixed and mobile network infrastructure equipment and services.The fused company had combined pro forma annual revenues in 2005 of roughly $18.8 billion. The venture will kick off with about 60,000 employees.
On the product front, Nokia Siemens will market a portfolio supporting IMS (IP Multimedia Subsystem), 2G GSM/EDGE access, 3G WCDMA/HSDPA, broadband transport, IPTV, and WiMAX, among other technologies.
"The communications industry is converging, and a strong and independent Nokia Siemens Networks will be ideally positioned to help customers lower costs and grow revenue while managing the challenges of converging technology," said Olli-Pekka Kallasvuo, Nokia's CEO.
He will also serve as chairman of Nokia Siemens Networks, which will be headquartered in Helsinki, Finland. A regional HQ will be based in Munich, Germany.
Nokia and Siemens hope to close the deal by the start of 2007.