Nokia announced today that Nokia Siemens Networks started its operations on April 1, assuming a leading position in the communications infrastructure market and ready to help its hundreds of customers across the globe meet the challenges of connecting the five billion people that the company believes will be "always on" by 2015.
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) and is ideally positioned to tap growth opportunities in both the wireless and fixed communications markets. Nokia Siemens Networks has approximately 600 customers and operates in about 150 countries, combining deep local presence and know-how with the global reach and international support of an industry leader. 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.
"Already starting as one of the leaders of the industry, we have a clear objective: to become number one. We want to be the number one communications enabler for our customers; the number one company connecting the world through seamless connectivity of mobile and fixed communications; and the number one workplace of choice for our employees. We also want to be known for operating with the highest standards of ethics and integrity," said Simon Beresford-Wylie, chief executive officer of Nokia Siemens Networks.
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 full 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.
"We have the size and resources to compete, but we also recognize that true competitiveness goes well beyond scale," said Simon Beresford-Wylie. "Nokia Siemens Networks has 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."
Nokia Siemens Networks builds on the rich research and innovation strength of its parent companies. It will have one of the world's best research and development teams, focused on advancing the development of best-in-class products for next-generation fixed and mobile network solutions. 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 10x111 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. This strong R&D capability, together with the innovative solutions already commercially available today like IMS, MSC Server System and Internet HSPA, will enable Nokia Siemens Networks 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," continued Beresford-Wylie. "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."
In terms of market outlook, over the last couple of months, there has been a narrowing of visibility and indications of a slowdown in spending in some regions. As a result, Nokia and Nokia Siemens Networks today are updating the outlook for the mobile and fixed services infrastructure market for 2007. The companies now expect very slight market growth for the mobile and fixed infrastructure and related services market in euro terms in 2007. Previously, Nokia expected slight growth in the mobile and fixed infrastructure and related services market in euro terms in 2007. From April 1, 2007, the financial results of Nokia Siemens Networks will be consolidated to Nokia.