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 BrandPost Are tech layoffs inevitable, or can your company avoid them? Despite tech industry layoffs, one ITSM company remains committed to growth and expansion of internal teams. The company’s successful endeavor is largely credited to one difference between TOPdesk and other tech organizations. By TOPdesk Mar 30, 2023 6 mins IT Leadership Analysis CIOs must evolve to stave off existential threat to their role With LOB leaders learning tech faster than CIOs gain business-savvy, IT leaders must strengthen advisory skills, build relationships, and embrace strategic transformation before losing out to business counterparts. By Yashvendra Singh Mar 30, 2023 10 mins Roles Opinion 5 ways AI will transform CRM Recent announcements by Microsoft and Salesforce on how they’re ramping up integration of AI tools into their software offerings mark the start of a revolution in the CRM marketplace. By Martin De Saulles Mar 30, 2023 4 mins Channel Sales CRM Systems Artificial Intelligence Interview From CIO to CX SVP, Cisco’s Jacqueline Guichelaar takes a road less travelled By David Binning Mar 29, 2023 7 mins Careers IT Leadership 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