NSN 650 million dollars to squeeze dry North electric Essence

Nokia Siemens, the world's second-largest equipment giant, swallowed up 650 million of billions of dollars to swallow the core of the world's sixth-largest equipment maker Nortel Network. Nokia Siemens CEO Bai Weixian, "The price of this transaction is very appropriate." "Over the weekend, Nortel Networks announced that it would accept a takeover offer from Nokia Siemens, which will buy Nortel CDMA and a wireless research and development department." The deal is expected to be completed in the third quarter, with the Canadian Export Development Authority pledging to provide 330 million dollars in support.　　Nortel said it would apply for its shares to be delisted from the Toronto Stock Exchange. NSN's move could make it the world's largest customer base for CD M A, and may also help improve competitiveness in the future fourth-generation communications technology market.　　For China's local equipment manufacturers are not very good, at least on the scale, so that Huawei into the world's top three manufacturers of the threshold is a bit higher.　　As for Nortel Chinese staff How to settle, how to dispose of business in China, reporters yesterday called Nortel China spokesman, but has been no answer. Nortel CDMA Business is the most profitable part of the Nortel Network announced June 19 that it will sell its CDMA business and LTE (long-term evolution Technology) assets to Nokia Siemens by 650 million dollars. Nokia Siemens CEO Bai Weixian said: "The price of the deal is very appropriate and strategic for Nokia Siemens to consolidate its position in the North American market and LTE." "The NSN's CDMA business, dubbed" the most lucrative part of Nortel's operating network, "was called by the industry. NSN said: "The acquisition of Nortel's profitable CD M a business will greatly improve the NSN in the North American market, making the company the North American market leader in wireless basic products suppliers. "Although the Northern power scenery no longer, but its share in the global CDMA market is close to 30%, especially in North America, in some markets, the main position in the CDMA sector is still difficult to shake." NSN acquisition of Nortel CDMA will undoubtedly enhance the competitiveness of CDMA in North America, NSN COO Mika Vauviraine (Mikavehvilainen) said, "We have been looking for opportunities, and North America is one of the markets we want to improve."　　"NSN also hopes to take down the Nortel's 400-member LTE 4G Research and Development department, which will greatly enhance NSN's leading position in the LTE field." According to the terms of the deal, 2,500 of Nortel's employees in Canada and the United States will be transferred to NSN.　　The deal also awaits approval from the U.S. Bankruptcy Court and the Ontario High Court of Canada. To scale advantage against the "China" price advantage before the NSN acquisition of Nortel, equipment manufacturers have undergone many rounds of mergers and acquisitions ——— since 2005, Ericsson has acquired the British Marconi, Cisco Acquisition Science Atlanta, Alcatel and Lucent mergers and hit of Nokia and Siemens marriage.　　The common features of these cases are focused on the provision of business-wide data services, the development of emerging markets and consolidation of the dominant business in three aspects.The gradual shrinking of the global market for mobile devices is the main reason why Giants hold their homes for warmth. Market research firm D Ell ' Oro predicts that the global mobile device market will fall sharply in 2009, with growth falling to single-digit numbers.　　Vodafone, the world's largest mobile operator, also said it would reduce the annual operating costs of about 1 billion pounds in an "appropriate time" to ease the impact of inflated costs and competitive pressures, a bad news for the equipment industry. "This NSN acquisition Nortel CDMA Business, also indicated that NSN intends to regain the initiative in CDM a market." Shen Zixin, executive director of the Future Institute of Telecommunications Research Institutions, said that in the 2009 quarter, the global CDMA base station market, Huawei to 30.3% of the share of the successful surpass Alcatel Lucent 19.4%, the world's largest CDMA provider. "In the face of the rise of Chinese enterprises, most of the international communications equipment giants can only take advantage of the scale, NSN acquisition of Nortel can also be seen as a response to China's price advantage and to challenge the size of an example." "But no matter how, such as the size of the income, NSN swallowed the North power, for Huawei catch-up increased difficulty." 2008, Huawei sales amounted to 18.33 billion U.S. dollars, from Nokia Siemens 2008 sales revenue of 15.5 billion euros (about 19.5 billion U.S. dollars) originally only a step away. But NSN plus Nortel core business, annual sales can reach about 25 billion U.S. dollars, the size of the boss Ericsson ——— Ericsson last year sales revenue of 25.2 billion U.S. dollars.