Nokia Siemens CEO Rajeev Suri said in an interview with the media during this year ’s Mobile World Communications Conference that the merger transaction between operators in the North American market will help the company ’s development, and Nokia ’s goal is to become a global telecommunications equipment supplier three.
Nokia Siemens Networks (hereinafter referred to as "Noxi") is strengthening its expansion in North America. The company believes that a series of transactions between mobile operators in this region will help its own development.
Nokia Siemens CEO Su Li said in an interview with the media that Softbank's $ 20 billion acquisition of 70% of Sprint Nextel's shares, and Deutsche Telekom's acquisition of MetroPCS and other transactions provide opportunities for Nokia's business development in North America.
Noci CEO Rajeev Suri
Su Li expressed the above views at this year's Mobile World Communications Conference (MWC). He said: "The telecommunications equipment market is a protracted battle. In just a few years, Nokia Siemens has leapt to the top three of North American telecommunications equipment vendors. Now our goal is to enter the top two."
Nokia's ownership will change on April 1 this year, when the six-year shareholder agreement signed by Nokia and Siemens will expire. Siemens from Urgently wants to withdraw from the joint venture, while Nokia from Finland clearly focuses on mobile phones, and both parties may not be willing to buy each other's shares.
Su Li said that the two parties to the joint venture are unlikely to be able to reach an agreement before the expiration of the shareholder agreement, but this does not affect the business development of the Nokia Siemens. Nokia and Siemens declined to comment.
In recovery mode
In fact, Nokia Siemens is currently in recovery mode, and the company is now in a much better condition than it was a year ago. After determining the reorganization plan, Nokia Siemens has begun to gradually recover from the downturn by reducing the number of employees from 75,000 to 58,000 and selling some non-core assets.
Last year, Nokia Siemens' operating profit and gross profit both showed growth. At the same time, the company did not become a burden on Nokia, but brought a certain amount of cash flow to the latter.
Su Li believes that SoftBank's entry into the United States is an opportunity for Nokia Siemens Networks. The company will play a good cooperative relationship with Softbank in the Japanese market to help it achieve good development in Japan, including the promotion of Sprint's acquisition of Clearwire.
After completing the merger between telecom operators, they usually straighten out their supplier networks, and many opportunities will arise during this period. At present, the main network equipment suppliers of T-Mobile are Nokia Siemens and Ericsson, while the suppliers of MetroPCS are Ericsson and Samsung, Nokia Siemens has the opportunity to get involved.
Su Li said: "I think Deutsche Telekom, which has acquired MetroPCS, will re-select the main supplier." It shows that Nokia Siemens has the opportunity to replace Samsung.
Strive to be the top three in the world
Nokia Siemens achieved a 20% increase in sales in the US last year, with sales of 1.294 billion euros, which revived. Nokia's strong performance has put pressure on Alcatel-Lucent, another telecommunications equipment maker whose situation is not optimistic. Ericsson, Alcatel-Lucent and Nokia Siemens are the top three telecommunications equipment vendors in the North American market.
Su Li stressed: "I still firmly believe that only three long-term profitable telecommunications equipment manufacturers in the world can survive in the next few years." From a global perspective, Ericsson and Huawei from China occupy the first two seats, the third The battle for the name is between Noci and Alcatel-Lucent.
At the same time, Su Li also believes that there will not be too many mergers and acquisitions in the telecommunications equipment industry, especially among large companies. Although many telecommunications equipment manufacturers cannot make ends meet, they will continue to exist in the short term. He pointed out, "The Matthew effect in the telecommunications equipment industry is very obvious. The stronger will be stronger, and the weaker will be weaker. This is true in the 3G era and in the LTE era. Look at the deployment of LTE in India, Russia and Japan. The status quo is clear. "
According to data from market research firm Dell'Oro, Ericsson ’s revenue from LTE wireless access networks was US $ 761.3 million in the fourth quarter of last year; Nokia ’s revenue was US $ 451.4 million during the same period; Huawei ’s revenue was US $ 428.8 million; US $ 100 million; Samsung ranked fifth with US $ 132.1 million.
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