Heavyweights join forces in network space
The new company, owned by Nokia and Siemens, holds a top three position in the industry (based on 2006 pro-forma revenues of EUR 17.1 billion) which in turn places them in a good position to tap growth opportunities in both the wireless and fixed communications markets, according to Nokia Siemens Networks.
Nokia Siemens Networks has approximately 600 customers and operates in about 150 countries, it is this synergy of local know-how combined with global reach which the new company feels gives them an edge in the industry.
The company starts with strong momentum. Approximately 140 joint bids have been submitted since anti-trust approvals in November, in addition to the separate Siemens and Nokia activities.
Future data growth
Nokia Siemens predict that by 2015 there will be around 5 billion people connecting to the Internet using an ‘always on’ service. The idea behind the partnership is to use the strengths of each company to better serve this burgeoning population.
According to Jan Mrosik, Head of Sub-region, South Africa, Nokia Siemens Networks, this growth is fuelled by data and due to this tremendous growth new business opportunities are opening up.
Mrosik said that the growth in this industry will be pushed ahead by data usage until 2010 and thereafter services like video sharing will start to factor into the equation.
What Nokia Siemens is bringing to the market
Nokia Siemens Networks has five product business units – Radio Access, Broadband Access, Service Core and Applications, IP/Transport, and Operations Support Systems – that provide a range of products and applications for fixed, mobile and converged networks. Additionally, the new company addresses the growing demand for services through its Services Business Unit, which has some 20,000 professionals worldwide.
“Nokia Siemens Networks has the size and resources to compete, but we also recognize that true competitiveness goes well beyond scale,” said Mrosik.
“We have the capability to bring true innovation to its customers. We have a company culture that values speed, flexibility, integrity and results over hierarchy. A deep partnership with Nokia gives us unique insights into end-users and allows us to provide full end-to-end solutions to our customers. And, last but not least, we have a portfolio that is ideal for the world of convergence, with strength in both fixed and mobile systems.”
Research and development
Nokia Siemens Networks builds on the research and innovation strength of its parent companies. In 2006, the R&D team that is now part of Nokia Siemens Networks demonstrated the world’s first Long Term Evolution (LTE) radio access solution.
In fixed access, research teams were able to transmit data at a rate of 10 gigabits per second via an optical access network, which is four times faster than the rate previously possible.
Recently, a 10×111 gigabit per second native transmission was achieved over 2400km using a Dense Wavelength Division Multiplexing (DWDM) infrastructure originally designed for 10 gigabit per second transmission – showing that operators will be able to migrate to 100 gigabit ethernet services per wavelength using their existing optical infrastructure.
Nokia Siemens stated that they believe their strong R&D capabilities will enable them to help customers meet their business goals.
“As the market changes and our customers face complex business challenges, we will also need to change at Nokia Siemens Networks,” said Scott Smith, Head of CBT, MTN, Nokia Siemens Networks.
“Bringing the internet and connectivity to the vast majority of people by 2015 will require finding new ways to lower the cost of connections, particularly in the large emerging markets. As Nokia and Siemens said when announcing the new company on June 19, 2006, we will seek estimated cost synergies of EUR 1.5 billion annually by 2010 in order to build a strong, competitive Nokia Siemens Networks.”
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