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Posted by Bhumika Ghimire Jun 19, 2006 |
To exploit economies of scale, Nokia and Siemens have agreed to join forces. According to the International Herald Tribune, "In the third major deal in the sector in less than a year, Nokia and Siemens announced Monday that they would combine their network- equipment businesses to create a new powerhouse with €15.8 billion in annual sales, a move analysts said would unleash a furious race to exploit economies of scale in a brutally competitive market."
Major competition for the new company is expected to be from Alcatel-Lucent and Ericsson-Marconi.