Nokia and Siemens say they plan to merge the former's Networks Business Group of Nokia and with the latter's carrier-related operations.

The resulting 50-50 joint venture 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," says Nokia ceo Olli-Pekka Kallasvuo.

"The communications industry is converging, and a strong and independent Nokia Siemens Networks will be ideally positioned to help customers lower costs and grow revenue while managing the challenges of converging technology."

Kallasvuo will be the chairman of Nokia Siemens Networks.

The new company's portfolio will include next generation tetwork convergence products such as IMS, 2G GSM/EDGE access, 3G WCDMA/HSDPA access, mobile core, fixed broadband, transport, IPTV, LTE, WiMAX and low-cost mobile voice products tailored for, "emerging market operators," say the two new partners.

Nokia Siemens Networks will have its operational headquarters in Helsinki, and, "strong regional headquarters in Munich, Germany, where three of the future five divisions of the new company will be based".

Also See:
merge - Nokia and Siemens to Merge Their Communications Service Provider Businesses, June 19, 2006