Nokia Siemens Networks opens for business

Nokia Siemens Networks officially opened its operational doors yesterday, bolding claiming that it is ready to embrace the challenges that lie ahead in the 'always on' world that will exist less than a decade from now.

The company believes that some five billion people will be permanently connected by 2015, creating a large pool of wireless and fixed communications users that it hopes to turn into customers in the future.

"As the market changes and our customers face complex business challenges, we will also need to change at Nokia Siemens Networks," said Simon Beresford-Wylie, chief executive of 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 €1.5 billion annually by 2010 in order to build a strong, competitive Nokia Siemens Networks."

Despite only becoming officially operational on April Fool's Day, the new company, which has been talking about its plans for some time, claims that it holds a top three position in the industry, based on last year's pro-forma revenues of €17.1 billion.

"Already starting as one of the leaders of the industry, we have a clear objective: to become number one," said Beresford-Wylie.

"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."

Nokia Siemens Networks will operate with a dedicated Services business and five product business units: Radio Access, Broadband Access, Service Core and Applications, IP/Transport, and Operations Support Systems. Each will create products for fixed, mobile and converged networks.

"We have the size and resources to compete, but we also recognise that true competitiveness goes well beyond scale," said 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."

Despite the optimism surrounding Nokia Siemens Networks' announcement that it is now open for business, the company also revised its outlook for the mobile and fixed services infrastructure market for this year.

Citing a slowdown in some regional spending in recent months, the company is now anticipating very slight market growth in these markets during 2007.

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