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Wireless Utopia

The journey towards a free wireless world.

Consolidation Wave

Wednesday, April 19, 2006

The consolidation wave after the Lucent-Alcatel merger seems to be picking up steam. The latest is that Seimens is looking to exit its Telecom Infrastructure business and Motorola and Nortel are the interested parties. Other ideal combinations have also been touted, Motorola-Juniper and Motorola-Tellabs. But the insider news points to Seimens-Motorola. In the past Seimens has sold of its loss making mobile phone business to BenQ.

Several reasons have also been cited; the preceeding acquisition wave amongst the carriers, Sprint joining Nextel, AT&T buying BellSouth and so on, leaving the equipment vendors with lesser but powerful customers and more imporantly competition from low-cost suppliers from China (read Huawei). Its amazing to see how low cost products disrupt the whole market.

Its been predicted earlier that the Chinese equipment companies would easily beat out the incumbent bigger players in the years to come. The industry it seems is gearing up for the challenge.

Tags: Siemens Motorola Nortel Lucent Alcatel Huawei ZTE M&A
posted by Rajiv, 12:21 AM

3 Comments:

its surely intresting move but i haven't seen the meger of this scale yield result RBR -Nabisco, GE-HoneyWell ,HP-Compaq they are all stories in futile merger


lets see what happens this time ?

still the post was cool, seeyou at barcamp :-)
Said Anonymous Anonymous, 1:01 AM  

This is interesting. India should have Huawei-equivalent companies. We are hoping we will be one of them (www.slokatelecom.com). This consolidation should be seen as an opportunity!
Said Anonymous Anonymous, 2:38 AM  

For spawning Huawei like companies we need hardware expertise. The moolah lies in there.
Said Anonymous Anonymous, 4:00 AM  

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