Nokia-Siemens telecom network merger swings into action
(China Daily)
Updated: 2006-09-12 08:37 Nokia and Siemens announced the merger of their
telecom network businesses in June, a move which could set them up as the No 3
player in the world's telecom infrastructure market.
The 50-50 joint
venture Nokia-Siemens Networks is expected to be operational by January 1, 2007
part of ongoing consolidation in the world's telecom market. Its estimated
annual revenue of 15.8 billion euros will put Nokia-Siemens on a par with larger
rivals Ericsson-Marconi and Alcatel-Lucent in the global telecom equipment
market.
The two companies appointed the new entity's worldwide regional operation
heads in August, including for China, which was listed as the only single
country market for Nokia-Siemens Networks.
Simon Beresford-Wylie, executive vice-president and general manager of Nokia
Networks and Chief Executive Officer Designate of Nokia-Siemens Networks, spoke
to China Daily reporter Li Weitao last week about how the merger and pending
regulatory approval is progressing the questions (Q) and answers (A) follow.
Q: Nokia Networks has been focusing on mobile networks and we know Siemens is
strong in the fixed-line business as well. So what is the role and value of
fixed network technology for Nokia-Siemens Networks?
A: When we looked at the merger, originally the logic very much was based on
convergence. In the last couple of years, it's becoming increasingly clear that
fixed-mobile conversions is a major industry trend.
With the merger with Siemens, I think we have a beautifully balanced
convergence portfolio.
On June 19 when we announced this I commented that 22 per cent of our
portfolio from a revenue perspective was based on fixed and 78 per cent based on
mobile.
Currently there are 2.4 to 2.5 billion mobile subscribers (globally). Our
expectations are that by 2008 it will grow to 3 billion and it will touch 4
billion in 2010.
Other growth areas are very much in broadband, the fixed broadband, and
around the convergent call. So fixed actually has, if you like, a nice dovetail
from a growth point of view on broadband access and convergent call with the
mobility business so we see a wonderful complementary here.
We feel great about the balance in our portfolio,
because as Nokia-Siemens Networks we may start as No 3 (player) but we aspire to
be No 1 and we think our portfolio gives us a great foundation to reach that
goal.
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