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In short:
1. The Fixed Networks, Mobile Networks and Carrier Services divisions of Com will merge with Nokia’s Network Business Group in a 50/50 joint venture, creating a fixed and mobile network powerhouse to be called Nokia Siemens Networks. The new company will be headquartered in Helsinki, Finland, while the European headquarters and three of its five divisions will be based in Munich. It will have operations in all major regions.
2. We are also determined to ensure a bright future for our Enterprise business. Therefore, we are in serious negotiations with strong players who can help create an organization with the financial strength and technological breadth to compete successfully with the dominant industry leader in all markets. We will be satisfying customers’ desire for a strong competitive alternative, while continuing to provide them with reliable service and investments in productivity and revenue generating applications. And, by creating an organization with sustained profitability and growth prospects, we will be providing stability and opportunity to our Enterprise employees.
3. The success of the Wireless Modules division is strongly based on their industrial applications capabilities. Already today it plays an important role in our industrial machine-to-machine controls and communication business. Therefore, it will be transferred to our Automation and Drives Group (A&D) as of October 1, 2006.
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We appointed Simon Beresford-Wylie as the CEO of Nokia Siemens Networks. He currently serves as Executive Vice President and General Manager of Nokia’s Networks unit. Peter Schönhofer will join the new company as CFO. He is currently the CFO of Siemens Austria.
After regulatory reviews and other approvals, we expect the merger to be completed by the end of December 2006.
The changes we announced today will ensure that our Com businesses thrive in today’s dynamic and consolidating telecommunications marketplace and they will contribute to the overall performance and growth outlook of Siemens as a whole. |
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