Nokia Siemens Moves Ahead with Merger

The proposed merger of Nokia and Siemens' communications units appears to be back on track, as officials announced the company's portfolio, while saying the merger would close sometime this quarter.

Nokia Siemens Networks will be divided into six units, including Radio Access, Service Core and Applications, Operation Support Systems, Broadband Access, IP/Transport, and Services.

Among the company's focuses will be continued development of EDGE and WCDMA/HSDPA services, along with a migration to a common network controller that could be used on the install bases of both companies. Nokia Siemens also plans to invest in fixed WiMAX technologies.

Chief among the considerations to combine the business plans is the need to ensure cost-efficiency. As cellular technology has become more commonplace, profitability has also dropped, meaning companies must ensure they are vigilant of operating costs.

Additionally, with uncertainty surrounding the merger after Siemens became the target of investigations surrounding bribery charges, the company felt it was necessary to provide some sense of direction.

"Our customers have crucial decisions to make about their business going forward, therefore clarity for them about our planned portfolio is a key strategic priority," COO-designate Mika Vehvilainen said at the 3GSM World Congress in Barcelona on Monday.

Several executives within the division that would become part of the new company were arrested late last year, causing the two companies to delay the planned merger into 2007 in December.