Nokia announced today that it will merge its infrastructure unit with the telecom infrastructure operations of Germany’s Siemens to create the world’s third-largest telecommunications infrastructure company. The new company will be called Nokia Siemens Networks.
“We believe the partnership with Siemens is the most effective way to build the scale and broad product portfolio necessary to compete globally and create value for shareholders,” said Nokia Chief Executive Olli-Pekka Kallasvuo in a statement.
The merger has been seen by many analysts as a response to the recently announced merger of France’s Alcatel and Lucent Technologies of the USA. Based on 2005 statistics, the combined Nokia/Siemens company had EUR15.8 billion in pro forma annual revenues and is expected to start operations with 60,000 employees. Nokia Siemens Networks will be based out of Finland with Nokia’s Simon Beresford-Wylie as CEO and Olli-Pekka Kallasvou as Chairman.