Mr. And Mrs. Al-Luc-Nokia-Siemens: Doomed ‘Marriage’

By Cat Yong

Wireless revenues that comprise 24% of Alcatel-Lucent’s revenues, and 40% of  Nokia Siemen’s revenues is a major reason why both the beleaguered infrastructure vendors can do without overlapping product portfolios right now, according to Ovum’s Daryl Schoolar.

And yet, that is what they seem to be heading towards if news reports around the WWW about their impending merger, are anything to go by.

One report  at www.fiercewireless.com suggests that the original joint venture of NSN is on the rocks as Siemens has expressed interest to exit the collaboration. Apparently, a strategic partnership with Alcatel-Lucent is one way to address Siemens’ possible exit.

Ovum principal analyst for Infrastructure, Daryl Schoolar was quick to shoot down the possible merger, saying that it “makes little sense.”

Schoolar said, “To now merge two companies that have yet to make their previous mergers work would be a step backwards for both parties.  This is especially true for NSN which appears to be finally getting its post merger self in order. The challenges facing this rumoured merger would be immense.”


He went on to say that one of the biggest challenges for the rumoured merger would be rationalising the overlapping product portfolio in wireless infrastructure, as well as operator support services, and ensuing layoffs.

“But mergers on the whole can be distractions and that is something that neither of these companies can afford at this time,” said Schoolar.

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