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Future Nokia Siemens Networks takes shape with unveiling of portfolio plan

(PresseBox) (Bochum, ) Nokia and Siemens today unveiled the proposed product portfolio plan of their future 50:50 joint venture Nokia Siemens Networks, strongly underlining their intent to create an industry leader that will meet the needs of customers in the converging telecommunications industry. The planned merger to create Nokia Siemens Networks is expected to close in the first quarter 2007.

Speaking at the 3GSM World Congress, Nokia Siemens Networks COO-designate Mika Vehviläinen said: "Our customers have responded positively to the proposed merger, and with this announcement we aim to justify their faith in us. Our customers have crucial decisions to make about their business going forward, therefore clarity for them about our planned portfolio is a key strategic priority."

He continued: "Nokia Siemens Networks will be ready to serve customers with a best-in-class portfolio that comprehensively covers both the mobile and fixed markets. It will be underpinned by a strong presence in the growing services market, a very powerful global R&D team, and a huge global installed base."

The proposed portfolio plan covers the six future business units for Nokia Siemens Networks: Radio Access, Service Core and Applications, Operation Support Systems, Broadband Access, IP/Transport, and Services. Highlights of the proposed plan include:

- The continued development of GSM/EDGE radio and WCDMA/HSPA Node Bs without change, acknowledging the large installed bases of both Nokia and Siemens, plus the migration to a common Radio Network Controller (RNC) that will support both installed bases. This strong radio portfolio plan will be rounded out with Nokia's mobile WiMAX and Siemens' fixed WiMAX solutions.
- A single, lead solution for: IP Multimedia Subsystem (IMS), mobile and fixed softswitches, Media Gateways (MGW), Push-to-Talk over Cellular (PoC), Intelligent Networks (IN), Packet Core, Mobile TV (DVB-H) and IPTV, and Converged Charging, among other solutions.
- Migration to a common microwave transport solution and a single IP DSLAM solution, while continuing all other IP/Transport and Broadband Access products without change.
- One umbrella solution for managing convergent and multi-vendor networks with a fault, performance and configuration management portfolio based on Nokia NetAct platform.
- A global services capability supporting over 300 fixed & 300 mobile clients in more than 100 countries.

The proposed product portfolio plans are the result of the combined input of experts from Nokia and Siemens, and also incorporate prior customer feedback. The key considerations for the plan include an unwavering focus on the customer and the companies' large installed bases, plus a strong drive to harmonize platforms to ensure cost-efficiency in ever-toughening markets.

Today's announcement marks the start of further dialogue with customers and employee representatives that will culminate in the coming months with a portfolio plan that fully taps the mobile communications strength of Nokia and Siemens with Siemens' fixed networks expertise.

The planned merger to create Nokia Siemens Networks is expected to close in the first quarter of 2007, subject to previously announced closing conditions.

About Siemens
Siemens (Berlin and Munich) is a global powerhouse in electrical engineering and electronics. The company has around 475,000 employees (incl. discontinued operations) working to develop and manufacture products, design and install complex systems and projects, and tailor a wide range of services for individual requirements. Siemens provides innovative technologies and comprehensive know-how to benefit customers in over 190 countries. Founded more than 155 years ago, the company focuses on the areas of Information and Communications, Automation and Control, Power, Transportation, Medical, and Lighting. In fiscal year 2006 (ended September 30), Siemens had sales of €87.3 billion and net income of €3.033 billion, according to U.S. GAAP.