19 June 2006
Two major companies in the phone market are to merge in order to create one of the world's biggest phone network firms and offer fixed-line and mobile convergence deals.
Nokia and Siemens will each take a 50% stake in a new joint venture company called Nokia Siemens Networks
Siemens said that the move would help the two companies to move into the emerging 'quadruple play' market, in which companies offer home and mobile phone services, as well as broadband and digital TV packages.
Olli-Pekka Kallasvuo, chief executive of Nokia, will serve as chairman of 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," he said.
"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."
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