Nokia and Siemens will merge their telecommunications infrastructure units to form Nokia Siemens Networks, a joint venture with estimated annual revenues of 15.8 billion euros (US$19.9 billion) for 2005, the two companies announced Monday.Nokia is contributing its Networks Business Group, while Siemens will contribute its carrier-related operations for fixed and mobile networks, the companies said. Nokia Siemens Networks will focus on manufacturing products for fixed and mobile networks.The deal, expected to close at the end of the year, will make the new entity the third-largest telecommunications infrastructure manufacturer, the companies said. This will place it after Telefonaktiebolaget LM Ericsson and the merged units of Lucent Technologies and Alcatel, which announced their merger earlier this year.The companies will each hold a 50 percent stake in the new venture, which will be based near Helsinki. Nokia Executive Vice President and General Manager of Networks Simon Beresford-Wylie will become the new company’s chief executive officer. The merger will save the two companies 1.5 billion euros per year, the companies estimated. Much of this will come from a 10 percent to 15 percent reduction in head count from 60,000, meaning cuts of 6,000 to 7,500 jobs in the first four years following the merger, the companies said.Falling prices for telecommunications infrastructure have pressured the sector, leading first to the merger of Lucent and Alcatel in early April. Low-cost competitors such as China’s Huawei Technologies are producing similar gear for less, and also making inroads into markets such as Eastern Europe and Africa. — Steven Schwankert, IDG News Service (Beijing Bureau)Related Links: Lucent, Alcatel Merger OK’d by U.S. Gov’t Google, Nokia to Release Web-Surfing DeviceCheck out our CIO News Alerts and Tech Informer pages for more updated news coverage. Related content feature 4 remedies to avoid cloud app migration headaches The compelling benefits of using proprietary cloud-native services come at a price: vendor lock-in. Here are ways CIOs can effectively plan without getting stuck. By Robert Mitchell Nov 29, 2023 9 mins CIO Managed Service Providers Managed IT Services case study Steps Gerresheimer takes to transform its IT CIO Zafer Nalbant explains what the medical packaging manufacturer does to modernize its IT through AI, automation, and hybrid cloud. By Jens Dose Nov 29, 2023 6 mins CIO SAP ServiceNow feature Per Scholas redefines IT hiring by diversifying the IT talent pipeline What started as a technology reclamation nonprofit has since transformed into a robust, tuition-free training program that seeks to redefine how companies fill tech skills gaps with rising talent. By Sarah K. White Nov 29, 2023 11 mins Diversity and Inclusion Hiring news Saudi Arabia will host the World Expo 2030 in Riyadh By Andrea Benito Nov 28, 2023 4 mins Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe