Prompt's TechBlog
Mobile mafia formed as convergence gathers pace
19 June 2006
Posted by Dave Wilby
Huge news today about a mega-merger taking place between European telephony giants Nokia and Siemens. The two companies are set to merge both their mobile and fixed-line businesses to create one of the world's biggest networking companies.
According to this story from the BBC, both companies will retain a 50 per cent stake in the resulting infrastructure company - Nokia Siemens Networks - which will be headquartered in Finland and target annual sales of 16bn euros (GBP11bn) by 2010. The Wall Street Journal estimates the value of the deal, to be completed by 1st January 2007, at around 25bn euros.
The merger follows quickly after a similarly gargantuan deal between Alcatel and Lucent Technologies earlier in the year.
In an official statement the firms said the merged company would gain "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 organisations".
No indication of staff losses as a result of the merger have yet been given by the management of the newly formed company. Nokia Siemens Networks will be run by Simon Beresford-Wylie, currently the boss of Nokia Networks.
Other useful sources on this story:
Washington Post - Reuters - ZDNet - NYTimes
tags: nokia | siemens | convergence
According to this story from the BBC, both companies will retain a 50 per cent stake in the resulting infrastructure company - Nokia Siemens Networks - which will be headquartered in Finland and target annual sales of 16bn euros (GBP11bn) by 2010. The Wall Street Journal estimates the value of the deal, to be completed by 1st January 2007, at around 25bn euros.
The merger follows quickly after a similarly gargantuan deal between Alcatel and Lucent Technologies earlier in the year.
In an official statement the firms said the merged company would gain "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 organisations".
No indication of staff losses as a result of the merger have yet been given by the management of the newly formed company. Nokia Siemens Networks will be run by Simon Beresford-Wylie, currently the boss of Nokia Networks.
Other useful sources on this story:
Washington Post - Reuters - ZDNet - NYTimes
tags: nokia | siemens | convergence
# posted by Dave Wilby at 11:31 AM 
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