Nokia and Siemens plot launch for joint venture

HELSINKI: The multi-billion-pound venture between Nokia and Siemens' network operations is seeking international agency ­support.

Nokia Siemens Networks, announced in June, combines the two companies' mobile and fixed-line network arms.

It will create one of the world's largest network firms, with annual revenues of around £11bn.

Barry French, who is ­currently Nokia Networks comms director and based in Finland, said ‘talks' with ‘international agencies' were under way but a decision ­remained some way off.

French indicated the two companies had begun devising an in-house comms line-up. But details have yet to be confirmed.

The agency and in-house comms make-up will need to be determined before Nokia Siemens Networks' official launch, likely to be in December.

Nokia and Siemens will have a 50:50 stake in the business, which will be headquartered in Helsinki, where it is believed the main comms team will be based. Some divisional headquarters will be based in Munich.

The merger will enable Siemens and Nokia to pool resources and cut research and development costs.

Nokia Networks EV-P and general manager Simon Beresford-Wylie will be the new company's first CEO. Siemens CFO for Austria, Peter Schönhofer, has been named as its first CFO.

The creation of Nokia Siemens Networks is part of a trend towards consolidation in the telco-infrastructure industry that analysts believe is caused by low-price competition from Asia.

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