Wave of restructuring of the global telecommunications industry completely swept Europe and the United States. Yesterday, two major international telecom giants Nokia and Siemens announced the merger of the telecommunications equipment sector. Message 1, the global telecommunications industry has once again caused a collective nervous tension. This is the acquisition of Marconi, Ericsson, Alcatel-Lucent after the hand, but also a multinational mergers and acquisitions.
Siemens faces global layoffs
Yesterday, Nokia said the new company name as the "Nokia - Siemens Communications Network", will include the Nokia Siemens network equipment sector and the communications sector, with each holding 50%. Both part of the business income of about 2005 for 158 million euros.
Mr. Bai Weixian from Nokia will serve as the new company's CEO, Mr. Peter Schonhofer from Siemens will serve as the new company's CFO. "Nokia - Siemens Communications Network" will be headquartered in Helsinki, Finland metropolitan area. Munich, Germany, will become an important regional headquarters, with the new company's future operations in three of five.
The merger is expected to January 1, 2007 and are currently still waiting for the merger of regulatory approvals, the transaction to be completed a series of procedures and the implementation of measures on a range of specific agreement.
The companies said the merger was motivated by the year 2010 the new company will save 1.5 billion euros per year of expenditure.
"Clearly, Nokia is the dominant party in this cooperation." Wang Yuquan, senior telecommunications experts believe that both sides of this surface, such as the cooperation of Siemens, the "sell" the meaning is still strong. Over the past few years, Siemens Communications sector performance has been poor, dragging the group legs, often light-house "red." The company's head of external expression of people who wish to sell. Year, the company's mobile phone unit has been sold to China Taiwan's BenQ.
"I estimate that the transaction must be accompanied by massive layoffs, and most will come from Siemens." Wang Yuquan said. The speculation is reasonable, then sell mobile phone unit, the Siemens Communications has been a large-scale layoffs occurred, including China.
Experts conservatively estimated, the next four years, the number of joint venture will be the beginning of the 6 million people over the merger fell 10%.
The next wave of consolidation sweeping the Who?
Telecom Consulting analyst Analysys International believes that Nokia fixed overwhelmed integrated product line for enhancing and expanding customer base intentions. Direction is the integration of telecommunications development, especially the integration of fixed and mobile. Nokia fixed now technically "short board", Siemens Communications The fact that the poor performance, but the fixed-line business customers with long-term technology accumulation and resources.
"This is a telecom equipment manufacturers to joint performance." Analysys International believes that after 20 years of competition, firms appeared among the scale of survival of the fittest, the acquisition is inevitable law of the jungle.
Since the second half of 2005, Ericsson acquired Marconi first, in April of this year, the merger of Alcatel and Lucent, to today's Nokia, Siemens portfolio, a clear trend line has been re-presented. The integration of the next wave will sweep to whom?
The remaining large equipment company is running out. Nortel bear the brunt of the trade speculation. Since the financial scandal erupted two years ago, Nortel has been underperforming. The rumors have been years ago, Nortel Networks and Motorola's desire to merge.
Huawei, Lenovo join hands to Rhapsody
Many analysts believe that transnational corporations "playing on the children," Restructuring and "Made in China" inseparable from the rise.
Analysys International said China's dramatic expansion of Huawei and ZTE are also causing a great threat to Siemens Communications. Indeed, even the picky Wall Street can not help but exclaim: "China wolf!"
"Short term ZTE, Huawei has little influence, but the collaboration of Nokia and Siemens will rewrite the map of global telecom equipment manufacturers." Wang Yuquan that in the context of integration, local Chinese companies may also wish to try and do something useful to address the changing situation.
He believes that the status of Nokia and Siemens mobile phones on the system's advantage is a good "partner", is very previous Sony Ericsson's cooperation with the style that experience has proved highly lethal. Wang Yuquan proposed a bold idea, Huawei and Lenovo can pull a hand?
"Huawei's equipment in the system are strong, but the mobile phone business generally, Lenovo's mobile phone just to show the momentum day by day. If the two 'marriage', the result was worth the wait." Wang Yuquan said.