Talk is cheaper for merger partners
By Andrew Parker in London
Published: June 19 2006 19:27 | Last updated: June 19 2006 19:27
Nokia and Siemens hailed their planned joint venture as creating the world’s third-biggest supplier of network equipment to telecoms companies, while analysts predicted more consolidation.
The move follows the merger agreement in April between Alcatel, France’s telecoms equipment maker, and Lucent, its US counterpart, to create the world’s biggest network infrastructure supplier. Last October, Ericsson, Sweden’s telecoms equipment maker, bought most of Marconi of the UK.
“Consolidation is the name of the game, therefore we believe it is the right move for us,” said Klaus Kleinfeld, chief executive of Siemens.
The telecoms carriers that are the network equipment manufacturers’ most important customers have been leading the consolidation charge. In March, AT&T, the US telephone company, announced plans to create the world’s biggest telecoms group by buying BellSouth, its smaller rival.