“The
combined company will be uniquely positioned to create the foundation of
seamless connectivity for people and things wherever they are. This foundation
is essential for enabling the next wave of technological change, including the
Internet of Things and transition to the cloud. With more than 40,000 R&D
employees and spend of €4.7 billion in R&D in 2014, the combined company will be in a position to accelerate
development of future technologies including 5G, IP and software-defined
networking, cloud, analytics as well as sensors and imaging”
Press Release by Nokia
on Wednesday April 15th 2015 announcing their intention to purchase
Telecom Equiptment Provider Alcatel-Lucent
Looks
like Nokia's ambitions to become a Telecom Equiptment Provider are finally being
realized!
On
Wednesday April 15th 2015, Helsinki, Finland-based Nokia announced
their intention to purchase French Telecom Equiptment Provider Alcatel-Lucent
for some US$16.6 billion (EU 15.6 billion)
dollars as reported in the article “Nokia
agrees to buy Alcatel-Lucent for $16.6 billion”, published April 15, 2015
By Sam Byford, The Verge.
The
deal will involve Nokia buying every outstanding Alcatel-Lucent share for 0.55 per
share of Nokia stock as reported in the article “Nokia
agrees to buy Alcatel-Lucent”, published April 15, 2015, Wall Street Journal. This will result in a
merged company still called Nokia and composed as follows:
1.
64.5% Nokia
2.
35.5% Alcatel-Lucent
You
can read the full announcement of the purchase in Nokia's Press Release
entitled Nokia
and Alcatel-Lucent to combine to create an innovation leader in Next Generation
Technology and services for an IP Connected World.
Nokia’s purchase by the
Numbers – No. 2 OEM Growing Strong to take on Ericsson and Huawei globally
This
purchase marks Nokia's push into the Telecom Equiptment Provider arena,
particularly for major AT&T and Verizon contracts in the USA, where they
will compete with Ericsson for those contracts.
After
this merger they are now ranked as No. 2 in the Global Telecoms Equiptment
Supplier game after Helsinki, Finland based Telecom Equiptment Provider
Ericsson as pointed out in the article “Nokia
Buys Alcatel-Lucent For $16.6 Billion”, published 4/15/2015 by Parmy Olson,
Forbes.
Nokia
President and CEO Rajeev Suri is apparently super upbeat on the timely
announcement, especially as they're acquired some of the same technical
know-how long associated with the legendary Bell Labs, quote: “Our innovation
capability will be extraordinary, bringing together the R&D engine of Nokia
with that of Alcatel-Lucent and its iconic Bell Labs. We will continue to
combine this strength with the highly efficient, lean operations needed to
compete on a global scale”.
It
also creates possibly the largest European counterweight to the growing power
of Telecom Equiptment Suppliers Ericsson and China-based Huawei, No. 1 and 2 as
noted in the article “Nokia
buys Alcatel to take on Ericsson in telecom equipment” published Wednesday
Apr 15, 2015 BY JUSSI ROSENDAHL AND
LEILA ABBOUD, Reuters.
The
combined company now sports some impressive numbers:
1.
114,000 employees
2.
26 billion euros in Alcatel-Lucent sales
3.
40,000 R&D employees
4.
6000 Alcatel-Lucent Employees in France
5.
6900 Nokia Employees in Finland
The
purchase also bumps them up to No. 2 in the world in terms of Telecom
Equiptment Providers behind Huawei in terms of Global marketshare:
1.
40% to Ericsson
2.
35% to Nokia-Alcatel-Lucent
3.
20% Huawei
Nokia’s
decision has been anticipated since 2013 has also saved this French company which
was struggling to find their form against these two (2) juggernauts a noted in
the article “Nokia
agrees to buy Alcatel-Lucent”, published April 15, 2015, Wall Street Journal.
Nokia
has promised to save French Telecom Jobs and possibly even add some five hundred
(500) to their total as they gear up to take on Ericsson and Huawei globally.
Truly, Nokia is on the road to recovery.
Nokia’s purchase of
Alcatel-Lucent - Crunching Swedish-French Telecoms Alliance Tiger to challenge
Chinese Huawei Dragon
Nokia
has already sold their smartphone Hardware division to Microsoft for US$7.2
billion dollars almost a year ago in April 2014 as reported in the article “Microsoft
closes Nokia deal, pays more than expected”, published 25 April 2014 12:07
pm BST by Rich Trenholm, CNET News.
Already
Microsoft is launching an onslaught of low-cost low-end and high-end feature and
smartphones, such as the US$29 Nokia 215 on the emerging market of India and
China as chronicled in my blog article
entitled “US$29
Nokia 215 by Microsoft - How Microsoft's Nokia Mobile division will conquer
India and Developing World Countries”.
Now
having shed that weight, they've taken on a new challenge that has a little
weight added to it in the form of Alcatel-Lucent fledgling smartphone division.
Good
to note here that Alcatel-Lucent is NOT the OEM (Original Equiptment
Manufacturer) of the DL600, DL700, DL750 and DL900 smartphones that Telecom
Provider Digicel sells in Jamaica as noted in the Geezam blog article entitled “Digicel
launches DL900 aka Alcatel Pop C7 as Digicel DL750 on Sale for Christmas 2014”.
Those
are Alcatel OneTouch smartphones and are made by a Chinese company called TCL
Corporation. They are in no way connected to Alcatel-Lucent or Nokia!
Nokia’s True Ambition –
Conquer the Huawei Dragon in China and overtake Ericsson in Finland
Nokia's
purchase of Alcatel-Lucent isn't geared solely towards competing against
Ericsson.
Rather,
Nokia is gearing up to compete with Ericsson and Huawei on a global scale as
well as in their own respective backyards
as explained in the article “Nokia
to buy Alcatel-Lucent for $16.6B, eyeing global market”, published April
15, 2015 by Claire Reilly, CNET News.
5G,
which is closely related to 4G LTE Advanced, is already being tested by Huawei
and Telecom Provider EE in London, England since October 2014 as explained in my
blog article
entitled “Huawei’s
4G LTE Advanced Test – How Quad-Band Qualcomm Snapdragon 810 on EE's Network
achieved 410MBps Download via inefficient Spectrum Aggregation”.
Armed
with such a large technical army means they can potentially go after Huawei in
China, India as well as South and East Asia to quote Alcatel-Lucent CEO Michel
Combes, who commented on the deal as thus:
“This transaction comes at the right time to strengthen the European
technology industry. We believe our customers will benefit from our improved
innovation capability and incomparable R&D engine under the Bell Labs
brand. The global scale and footprint of the new company will reinforce its
presence in the United States and China”.
With
the purchase giving Nokia such a huge advantage in the Telecom Equiptment
Provider game, Nokia is perfectly poised to leapfrog directly into becoming
suppliers of 4G LTE (Long Term Evolution) and the still evolving 5G Platforms.
Here’s
the link:
No comments:
Post a Comment