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The world's telecoms infrastructure providers have underwent
major restructuring measures in the past few years either through
mergers or acquisitions amid a growing price pressure in the rapidly
expanding but fiercely competitive telecoms market.
French Alcatel and the United States-based Lucent Technologies
officially operated as a single business entity early this month
following their merger move, which turned the combined company into the
world's largest telecom gear manufacturer.
With combined revenues of about 17.2 billion euro (about US$22.36)
billion in 2005, Alcatel-Lucent overtakes LM Ericsson ABs 16.2 billion
euro in revenues to control about 18 percent of the fiercely
competitive market for telecoms equipment.
The merger between Alcatel and Lucent followed the surprised move made
by LM Ericsson in January this year to take over the telecommunication
assets of British telecom giant Marconi Corporation for about $2.1
billion.
The latest merger move was launched by Nokia and Siemens which agreed
in June this year to combine their networks business into a new company
to be called Nokia Siemens Networks.
The 50-50 joint venture, which will officially operate by January, next
year, will have combined sales of about 15.6 billion euro, or the
world's third largest provider of fixed, mobile networks infrastructure
and services after Ericsson and Alcatel Lucent.
"The combined company is positioned to lead the development and
implementation of revenue-sharing and cost-saving products and services
via its scale and global reach," Christoph Caselits, the president of
Siemens Networks for Mobile Networks told Indonesian journalists at the
sideline of the ITU Telecom World 2006 in Hong Kong recently.
He said that with the merger, Nokia Siemens Networks would have one of
the world's best research and development teams, with the ability to
invest in next generation fixed and mobile product platforms and
services.
In addition, the new company will also have a world-class fixed mobile
convergence capability, a complementary global base of customers, a
deep presence in both developed and emerging markets.
With such operational advantages, Christian Unterberger, the president
of Siemens Network for Fixed Networks, believes that the merged company
would be better suited to compete with both Alcatel and Ericsson in the
gear market for both fixed and mobile telecommunication services.
"We believe the partnership will be the most effective way to build the
scale and broad product portfolio necessary to compete globally and
create value for shareholders," he said.
Nokia Siemens Network will have its operational headquarters in
Helsinki, Finland and regional headquarters in Munich, Germany where
three of the future five divisions of the new companies will be based.
Simon Beresford-Wylie, currently executive vice president and general
manager of Networks Nokia, will assume the position of chief executive
officer, while Peter Sch”nhofer, currently a member of the
executive board of Siemens AG, will assume the position of chief
finance officer.
In Indonesia, Siemens's telecom network infrastructure business and
services are run under PT Siemens Indonesia, which is also involved in
providing infrastructure for power plants and transportation.
"In the telecommunication sector, Siemens Indonesia has become a market
leader, with a market share of about 40 percent in the mobile networks
and 20 percent in fixed networks. Its main customers in the country
include Tekomsel, Indosat and Excelcomindo and Hutchison Telecom
Indonesia," said Wendhyharto Kusumaatmadja, the manager of the
marketing department for communications carrier networks at Siemens
Indonesia.
Siemens Indonesia has become a long established supplier of most
Indonesian's telecommunication companies, with the most recent business
deals including a contract for the construction of a 3G network from
Telkomsel, the largest mobile phone operator in the country, he said.
The three-year contract signed in November, covers delivery of 3G radio
access networks and radio relay technology for larger parts of
Tekomsel's networks as well as turnkey implementation and technical
services for network operation. This is Siemens's second 3G contract in
Indonesia.
The first contract for the supply of 3G network infrastructure was
awarded in January, this year by PT Hutchison Telecom Indonesia,
another Indonesian 3G operator.
"Under the term of contract, Siemens will supply and build the entire
radio and core networks, providing broad coverage and ample capacity
for the initial phase of Hutchison's operation," Wendhyharto said.
The deal will enable Hutchison Telecom Indonesia not only to provide
comprehensive nationwide basic voice and value-added services but also
high-speed mobile data services in Indonesias major cities.
Siemens will additionally assume responsibility for managing and
maintaining the entire network, involving such services as managing the
operations and maintenance center or as network planning.
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