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Nokia Siemens Networks Reveals Product Plans

Posted on: Tuesday, 13 February 2007, 06:00 CST

Nokia Siemens Networks has revealed the broad outline of its combined product portfolio and said it is on course to achieve 1.5bn euros ($1.95bn) in cost savings by 2010, with 40% of the savings coming from consolidating R&D.

Completion of the 50-50 merger announced in June 2005 has been delayed by the bribes scandal currently enveloping Siemens, but CEO-designate Simon Beresford-Wylie said he is confident it would be completed by the end of March.

The product line-up is a sensitive subject as 10% to 15% of the 60,000 workforce will lose their jobs when overlapping functions are cut and greater efficiencies sought in R&D.

Outlining the scale of the opportunity for the company, Beresford-Wylie said it would be positioned to help customers capture opportunities that will arise as the connected community swells.

"In 2015, we will live in a broadband-IP world, in which 5 billion people in practice will be 'always on', connected to the internet, rich content, services and of course each other," he said.

He was modest about short-term prospect and said the company does not to expect to gain or lose market share this year. "We see opportunity because there are some very weak tier-two and -three players that are in a very difficult position," he said.

He acknowledged it is weak in North America that it has won a contract to roll out a new mobile network for T-Mobile USA.

Nokia Siemens Networks will have six future business units: Radio Access, Service Core and Applications, Operation Support Systems, Broadband Access, IP/Transport, and Services.

It plans continued development of GSM/EDGE radio and WCDMA/HSPA Node Bs without change, given the large installed bases of both Nokia and Siemens, plus the migration to a common Radio Network Controller that will support both installed bases. The radio portfolio plan will be rounded out with Nokia's mobile WiMAX and Siemens' fixed WiMAX systems.

It will offer a single, lead system for IP Multimedia Subsystem, mobile and fixed softswitches, Media Gateways, Push-to-Talk over Cellular, Intelligent Networks, Packet Core, Mobile TV (DVB-H) and IPTV, and converged charging.

The company plans migration to a common microwave transport system and a single IP DSLAM system, while continuing all other IP/Transport and Broadband Access products without change.

There will be one umbrella system for managing convergent and multi-vendor networks with a fault, performance and configuration management portfolio based on Nokia NetAct platform.

Nokia Siemens Networks said it will have global services capability supporting over 300 fixed and 300 mobile clients in more than 100 countries.

Continuing an alliance formed by Siemens, the company signed a Memorandum of Understanding with NEC Corp in the area of WCDMA radio networks. It covers continued support and development for the installed base of Siemens Networks and NEC WCDMA base stations and radio networks controllers.

Collaboration between NEC and Siemens Networks has been carried out through their joint venture company Mobisphere and this will continue as a joint venture of between NEC and the new company.

Source: Datamonitor

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