Interesting: Nokia and Siemens to merge their communications service provider businesses

Many observers have been expecting the big wireless network providers (Ericsson and Nokia) to gobble up a smaller provider in response to the Lucent-Alcatel merger.

A different thought I had was that the providers throw all their chips into one kinda lab that keeps the tech going. One thing that is hard is that all of them need to develop stuff for a really tight market. I was hoping that they would pool resources to avoid losing the skill sets needed for the upswing in the market in a few years (if it comes?).

Yeah, joint ventures are one way of doing it. By my count, this is Nokia’s second big jiont venture in a core area – one with Sanyo over CDMA and now this one with Siemens over Network Infra.

Kinda makes the head spin, thinking about it.

Nokia – ShowPressRelease

Nokia and Siemens today announced that they intend to merge the Networks Business Group of Nokia and the carrier-related operations of Siemens into a new company, to be called Nokia Siemens Networks. The 50-50 joint venture will create a global leader with strong positions in important growth segments of fixed and mobile network infrastructure and services.

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