Nokia to Pursue Alcatel Lucent for their Network Services 9/26/2013
A while ago , Nokia purchased Siemens share in Nokia Siemens Networks for Euro 1.7 billion, and now WallStreet Journal is reporting that discussions are underway for NSN to purchase Alcatel-Lucent networks to create the world’s 2nd largest network provider right after Ericsson.
The move is going to be beneficial for Nokia as they diversify their handset and services business to Microsoft, the network business will enable them to get into bigger markets as Alcatel already have exclusive contracts with ATT and Verizon in USA and also with China Mobile .
With ZTE and Huawei out of the US market due to privacy and secrecy concerns , the move will give Nokia 45% of the US market 2nd only to 50% share of Ericsson.
Nokia is the company which always reinvents itself , what started as a rubber and timber company have transformed itself into the world’s largest mobile phone company to be sold to Microsoft and now their moving into to become one of the largest player in networks .
My big question is what was the reason that MSFT did not just buy all of Nokia. MSFT just bought the hand set business and left the wireless unit and the NSN unit on the table. You can bet it was not that MSFT did not have the money.Or better than that, why not wait for the merge of Nokia and ALU and then buy it all. Did MSFT just not see any value in the wireless unit and NSN?
Alcatel-Lucent is currently in the midst of a restructuring effort, aiming to slash €1 billion in costs and refocus the company on a narrower range or profitable products.
While combining with Alcatel-Lucent would be a risky bet for Nokia, the French company has lucrative contracts with carriers such as Verizon Wireless and AT&T in the U.S., as well as China Mobile Ltd., 0941.HK -0.74% one of the world's largest telecom operators.
Some within the French government have indicated they would supportive of a deal merging Alcatel-Lucent and Nokia's telecom-equipment business, people familiar with their thinking said earlier this year.
Such a deal could create a new European champion that would be better positioned to compete with both Sweden's Ericsson and the China's rapidly growing Huawei Technologies, those people said.
In a recent note to investors, Morgan Stanley said a combination of NSN and Alcatel-Lucent would create the second largest player on the network infrastructure market, with a market share behind Ericsson's 36% and slightly ahead of Huawei's 32%.
In the U.S., Alcatel-Lucent and NSN would have a 45% market share, against 50% for Ericsson.
If your going to gamble try this one with plenty of up side PVHO .05 news 8k major contract with RAD
PVHO .05 will provide RAD 4600 stores with Kiosks at $ 1500 per store per month do the math and you'll figures will come to more than $ 20mil per yr in revenues