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Nokia and Siemens to tango

By LI WEITAO (China Daily)
Updated: 2006-08-07 14:14

Such services currently account for 30 per cent of Nokia's network worldwide business revenues. The firm expects that figure to grow 50 per cent.

A shift to professional services will help Nokia lower risks in a network equipment market dogged by price wars.

Chinese operators have been slow in accepting the concept of "professional services" for a number of reasons such as concerns about national security.

Yet, Ho says local operators are now showing increased interest as professional services could help cut operating costs.

"Eventually they will embrace professional services."

In the future 3G market, Nokia, by combining Siemens' network business, could also be a strong player.

Nokia and Siemens are the major vendors of the 3G WCDMA infrastructure. WCDMA is widely predicted to dominate China's future 3G market.

"We are now aiming for the No 1 position," Ho says. "Our strength in mobile phone business will help us provide an end-to-end solutions to operators."

Though behind in networking, Nokia is strong in mobile phone sales in China. The firm sold 11 million mobile phones in China, an increase of 50 per cent year-on-year.

"Many people have been speculating that Nokia would sell its network business (when it's underperforming)," Ho says. "In fact, the technology build-up in the network business will give a boost to the mobile phone business."